Merck & Company Inc (MRK)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 | 39,121,000 |
| Total assets | US$ in thousands | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 | 84,397,000 |
| Total asset turnover | 0.56 | 0.54 | 0.46 | 0.45 | 0.46 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $60,115,000K ÷ $106,675,000K
= 0.56
The total asset turnover ratio measures how efficiently a company generates revenue from its total assets. For Merck & Co Inc, the ratio has fluctuated over the past five years, ranging from 0.46 to 0.56.
A total asset turnover ratio below 1 indicates that the company is not efficiently utilizing its assets to generate revenue. Merck's ratios over the past five years suggest that there has been some variability in the company's ability to generate revenue from its total assets.
In 2021, the ratio was relatively low at 0.46, indicating that Merck may have faced challenges in generating revenue from its assets efficiently that year. However, the ratio improved in the following years, reaching 0.56 in 2023, which suggests that the company has become more effective in utilizing its assets to generate revenue.
Overall, while there have been fluctuations in Merck & Co Inc's total asset turnover ratio, the most recent data point of 0.56 indicates a positive trend in the company's asset efficiency and revenue generation.
Peer comparison
Dec 31, 2023