Merck & Company Inc (MRK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,841,000 | 12,694,000 | 8,096,000 | 8,050,000 | 9,676,000 |
| Short-term investments | US$ in thousands | 1,016,000 | 498,000 | 0 | 1,787,000 | 2,361,000 |
| Total current liabilities | US$ in thousands | 25,694,000 | 24,239,000 | 23,872,000 | 27,327,000 | 22,220,000 |
| Cash ratio | 0.31 | 0.54 | 0.34 | 0.36 | 0.54 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,841,000K
+ $1,016,000K)
÷ $25,694,000K
= 0.31
The cash ratio of Merck & Co Inc has shown some fluctuations over the past five years. The ratio stood at 0.60 in 2023, indicating that the company had $0.60 of cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year's ratio of 0.84 in 2022.
In 2021, the cash ratio was 0.63, showing a slight improvement from 2020 when it was 0.50. The highest cash ratio in the provided data was seen in 2019 at 0.66.
Overall, the trend in the cash ratio suggests some variability in Merck & Co Inc's ability to cover its short-term liabilities with its available cash and cash equivalents. It is important for stakeholders to monitor this ratio over time to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023