Merck & Company Inc (MRK)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	64,168,000	63,174,000	62,479,000	61,402,000	60,114,000	59,314,000	58,311,000	57,869,000	59,283,000	58,974,000	57,169,000	53,978,000	48,704,000	46,131,000	43,906,000	41,857,000	43,287,000	36,488,000	37,956,000	40,363,000
Property, plant and equipment	US$ in thousands	23,779,000	23,446,000	23,221,000	23,045,000	23,051,000	22,526,000	22,231,000	21,758,000	21,422,000	20,424,000	20,059,000	19,747,000	19,279,000	18,565,000	18,064,000	18,295,000	17,000,000	16,919,000	15,789,000	15,269,000
Fixed asset turnover		2.70	2.69	2.69	2.66	2.61	2.63	2.62	2.66	2.77	2.89	2.85	2.73	2.53	2.48	2.43	2.29	2.55	2.16	2.40	2.64

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $64,168,000K ÷ $23,779,000K
= 2.70

Merck & Company Inc's fixed asset turnover ratio has shown a relatively stable trend over the period from March 31, 2020, to December 31, 2024, ranging between 2.16 and 2.89. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.

Throughout the period, Merck's fixed asset turnover ratio has generally remained above 2, which suggests that the company has been effectively utilizing its fixed assets to generate sales. The peak ratio of 2.89 in September 30, 2022, indicates a particularly efficient use of fixed assets to generate revenue. On the other hand, the decrease in the ratio to 2.16 on September 30, 2020, may suggest a lesser efficiency in utilizing fixed assets during that period.

Overall, the consistent range of fixed asset turnover ratios for Merck & Company Inc reflects the company's ability to efficiently generate revenue from its investment in fixed assets, which is a positive indicator of operational efficiency and effective asset management.