Merck & Company Inc (MRK)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 28,126,000 | 28,717,000 | 28,778,000 | 29,139,000 | 29,510,000 | 29,379,000 | 29,096,000 | 29,173,000 | 30,451,000 | 29,693,000 | 29,138,000 | 27,652,000 | 26,529,000 | 30,232,000 | 30,256,000 | 30,439,000 | 29,776,000 | 26,138,000 | 27,476,000 | 28,046,000 |
| Payables | US$ in thousands | 4,079,000 | 3,586,000 | 3,519,000 | 3,514,000 | 3,922,000 | 3,509,000 | 3,442,000 | 3,680,000 | 4,264,000 | 3,371,000 | 3,482,000 | 3,715,000 | 4,609,000 | 3,366,000 | 3,897,000 | 4,034,000 | 4,327,000 | 3,744,000 | 3,448,000 | 3,572,000 |
| Payables turnover | 6.90 | 8.01 | 8.18 | 8.29 | 7.52 | 8.37 | 8.45 | 7.93 | 7.14 | 8.81 | 8.37 | 7.44 | 5.76 | 8.98 | 7.76 | 7.55 | 6.88 | 6.98 | 7.97 | 7.85 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $28,126,000K ÷ $4,079,000K
= 6.90
The payables turnover ratio for Merck & Company Inc has shown fluctuations over the past few years, ranging from a low of 5.76 to a high of 8.98. Generally, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently and efficiently.
In the most recent period, the payables turnover ratio was 6.90, which suggests that Merck & Company Inc took longer to pay its suppliers compared to the prior period. It is important to assess the trend over time and compare it to industry benchmarks to understand if the company's payables management practices are improving or deteriorating.
Overall, the payables turnover ratio provides insights into how effectively the company is managing its accounts payable and cash flow. A consistent and stable ratio over time is typically favorable as it indicates good relationships with suppliers and efficient working capital management.
Peer comparison
Dec 31, 2024