Merck & Company Inc (MRK)
Total asset 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 |
| Total assets | US$ in thousands | 117,106,000 | 117,532,000 | 112,630,000 | 105,849,000 | 106,675,000 | 106,727,000 | 104,469,000 | 107,796,000 | 109,160,000 | 107,081,000 | 107,095,000 | 106,668,000 | 105,694,000 | 93,494,000 | 90,688,000 | 90,847,000 | 91,588,000 | 89,800,000 | 90,615,000 | 84,913,000 |
| Total asset turnover | 0.55 | 0.54 | 0.55 | 0.58 | 0.56 | 0.56 | 0.56 | 0.54 | 0.54 | 0.55 | 0.53 | 0.51 | 0.46 | 0.49 | 0.48 | 0.46 | 0.47 | 0.41 | 0.42 | 0.48 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $64,168,000K ÷ $117,106,000K
= 0.55
Total asset turnover is a key financial ratio that measures a company's ability to generate sales revenue from its total assets. For Merck & Company Inc, the total asset turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 0.48 in March 2020, indicating that the company generated $0.48 in sales for every dollar of assets. It then declined to 0.42 in June 2020 before gradually improving to 0.56 by March 2023.
The trend continued to be relatively stable, with some minor fluctuations, reaching 0.55 by December 2024. This suggests that Merck & Company Inc became more efficient in utilizing its assets to generate sales over the period under consideration. A higher total asset turnover ratio generally indicates better asset utilization and efficiency in generating revenue.
Overall, the trend in Merck & Company Inc's total asset turnover reflects the company's ability to efficiently generate sales revenue in relation to its total assets. An increasing trend in the ratio over time indicates improved efficiency and effective utilization of assets to drive revenue growth.
Peer comparison
Dec 31, 2024