Merck & Company Inc (MRK)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 27,790,000 | 28,136,000 | 26,955,000 | 26,868,000 |
| Payables | US$ in thousands | 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 | 3,738,000 | 3,198,000 | 3,142,000 | 3,018,000 |
| Payables turnover | 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 | 7.43 | 8.80 | 8.58 | 8.90 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $29,510,000K ÷ $3,922,000K
= 7.52
Based on the data provided, Merck & Co Inc's payables turnover ratio has fluctuated over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays its average accounts payable balance during a period.
Merck & Co Inc's payables turnover ratio ranged from a low of 4.08 in Q4 2022 to a high of 5.02 in Q3 2022. This suggests that in Q3 2022, the company paid its average accounts payable balance 5.02 times during that quarter. The ratio declined to 4.11 in Q4 2023, indicating a decrease in the frequency of paying off its accounts payable compared to Q3 2023.
Overall, Merck & Co Inc's payables turnover indicates that the company has been relatively efficient in managing its accounts payable over the past eight quarters. However, it is important to continue monitoring this ratio to ensure effective management of the company's payables.
Peer comparison
Dec 31, 2023