Merck & Company Inc (MRK)
Receivables 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 |
| Receivables | US$ in thousands | 10,278,000 | 10,349,000 | 9,450,000 | 9,230,000 | 7,851,000 |
| Receivables turnover | 6.24 | 5.81 | 6.27 | 5.28 | 5.29 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $64,168,000K ÷ $10,278,000K
= 6.24
The receivables turnover ratio for Merck & Company Inc has shown a trend of stability and slight improvement over the past five years. In December 31, 2020, the receivables turnover was 5.29 times, which decreased marginally to 5.28 times by December 31, 2021. However, the company saw an increase in receivables turnover to 6.27 times by December 31, 2022, indicating that the company collected its accounts receivable more efficiently. The ratio decreased to 5.81 times by December 31, 2023, then increased again to 6.24 times by December 31, 2024.
Overall, Merck & Company Inc has been effectively managing its accounts receivable, with a relatively consistent performance in converting credit sales into cash over the years. This suggests that the company has been efficient in collecting payments from its customers, which is a positive indicator of its liquidity and financial health.
Peer comparison
Dec 31, 2024