Merck & Company Inc (MRK)
Receivables 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 |
| Receivables | US$ in thousands | 10,278,000 | 11,381,000 | 11,642,000 | 11,366,000 | 10,349,000 | 10,394,000 | 11,030,000 | 10,415,000 | 9,450,000 | 9,482,000 | 9,643,000 | 9,828,000 | 9,230,000 | 8,571,000 | 7,843,000 | 8,235,000 | 7,851,000 | 8,422,000 | 7,577,000 | 8,182,000 |
| Receivables turnover | 6.24 | 5.55 | 5.37 | 5.40 | 5.81 | 5.71 | 5.29 | 5.56 | 6.27 | 6.22 | 5.93 | 5.49 | 5.28 | 5.38 | 5.60 | 5.08 | 5.51 | 4.33 | 5.01 | 4.93 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $64,168,000K ÷ $10,278,000K
= 6.24
The receivables turnover ratio for Merck & Company Inc has shown a generally positive trend over the analyzed period, starting at 4.93 on March 31, 2020, and increasing to 6.24 by December 31, 2024. This indicates that the company is collecting its accounts receivable more efficiently over time.
The highest receivables turnover ratio was observed on December 31, 2022, with a value of 6.27, showcasing the company's strong ability to convert its credit sales into cash. Conversely, the lowest turnover ratio during this period was recorded on September 30, 2020, at 4.33, suggesting a slowdown in accounts receivable collection efficiency at that time.
Overall, the upward trend in receivables turnover is a positive indicator of Merck & Company Inc's effectiveness in managing its accounts receivable and converting them into cash, thereby enhancing its liquidity position and potentially reducing bad debts.
Peer comparison
Dec 31, 2024