Merck & Company Inc (MRK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 64,168,000 | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 |
| Property, plant and equipment | US$ in thousands | 23,779,000 | 23,051,000 | 21,422,000 | 19,279,000 | 17,000,000 |
| Fixed asset turnover | 2.70 | 2.61 | 2.77 | 2.53 | 2.44 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $64,168,000K ÷ $23,779,000K
= 2.70
The fixed asset turnover ratio for Merck & Company Inc has shown a generally positive trend over the past five years. Starting at 2.44 in December 2020, it increased steadily to 2.53 in December 2021 and further to 2.77 in December 2022, indicating that the company is generating more revenue relative to its investment in fixed assets. However, in December 2023, the ratio slightly decreased to 2.61 before rebounding to 2.70 in December 2024.
Overall, the upward trajectory of the fixed asset turnover ratio suggests that Merck & Company Inc has been utilizing its fixed assets more efficiently to generate sales revenue, which is a positive indicator of operational performance and management's ability to drive productivity and profitability.
Peer comparison
Dec 31, 2024