Merck & Company Inc (MRK)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	39,122,000	45,971,000	44,368,000	43,073,000
Total current assets	US$ in thousands	32,168,000	31,954,000	29,977,000	33,402,000	35,722,000	33,561,000	32,116,000	31,184,000	30,266,000	31,058,000	28,665,000	26,909,000	27,764,000	26,577,000	29,343,000	26,174,000	27,483,000	26,142,000	24,298,000	25,351,000
Total current liabilities	US$ in thousands	25,694,000	23,094,000	23,394,000	23,131,000	24,239,000	22,998,000	23,168,000	22,316,000	23,872,000	23,728,000	21,906,000	26,361,000	27,327,000	20,405,000	22,178,000	23,483,000	22,220,000	20,684,000	20,085,000	18,543,000
Working capital turnover		9.29	6.69	8.86	5.63	5.16	5.58	6.39	6.09	7.62	6.29	6.50	76.38	99.05	5.91	5.30	15.00	7.43	8.42	10.53	6.33

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $60,114,000K ÷ ($32,168,000K – $25,694,000K)
= 9.29

The working capital turnover ratio for Merck & Co Inc has displayed fluctuations over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

In Q4 2023, the working capital turnover ratio was 9.29, indicating that the company generated $9.29 in revenue for every dollar of working capital invested. This was a significant increase from the previous quarter where the ratio was 6.69.

The Q3 2023 ratio of 6.69 suggests a slight decrease in efficiency compared to the previous quarter. However, the ratio remained relatively high, reflecting strong performance in utilizing working capital.

During Q2 2023, the working capital turnover ratio improved to 8.86, indicating an increase in efficiency in generating revenue from working capital compared to Q1 2023, where the ratio was 5.63.

Overall, Merck & Co Inc has shown a varying trend in its working capital turnover ratio over the analyzed period. The company should continue to monitor and manage its working capital effectively to ensure optimal utilization for generating sales revenue.