Merck & Company Inc (MRK)
Working capital 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 current assets | US$ in thousands | 32,168,000 | 35,722,000 | 30,266,000 | 27,764,000 | 27,483,000 |
| Total current liabilities | US$ in thousands | 25,694,000 | 24,239,000 | 23,872,000 | 27,327,000 | 22,220,000 |
| Working capital turnover | 9.29 | 5.16 | 7.62 | 95.01 | 7.43 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $60,115,000K ÷ ($32,168,000K – $25,694,000K)
= 9.29
Merck & Co Inc's working capital turnover has fluctuated over the past five years. The ratio was 9.29 in 2023, showing that the company generated $9.29 in revenue for every $1 of working capital invested during the year. This represents a significant improvement compared to 2022 when the ratio was 5.16. In 2021, the ratio was 7.62, indicating efficient utilization of working capital. The sharp increase to 109.83 in 2020 suggests a significant decrease in working capital efficiency, possibly due to extraordinary circumstances such as mergers, acquisitions, or other one-off events. The ratio then returned to a more normalized level of 8.90 in 2019. Overall, the working capital turnover ratio for Merck & Co Inc has shown variability, emphasizing the importance of closely monitoring working capital management strategies.
Peer comparison
Dec 31, 2023