Merck & Company Inc (MRK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,841,000 | 8,605,000 | 5,660,000 | 9,707,000 | 12,694,000 | 11,145,000 | 9,675,000 | 8,556,000 | 8,096,000 | 10,016,000 | 8,575,000 | 6,981,000 | 8,050,000 | 7,356,000 | 11,103,000 | 7,425,000 | 9,676,000 | 7,869,000 | 6,659,000 | 8,076,000 |
| Short-term investments | US$ in thousands | 1,016,000 | 1,914,000 | 718,000 | 680,000 | 498,000 | 103,000 | 453,000 | 372,000 | 0 | 1,915,000 | 1,579,000 | 1,596,000 | 1,787,000 | 1,477,000 | 1,307,000 | 786,000 | 2,361,000 | 969,000 | 1,600,000 | 2,049,000 |
| 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 |
| Cash ratio | 0.31 | 0.46 | 0.27 | 0.45 | 0.54 | 0.49 | 0.44 | 0.40 | 0.34 | 0.50 | 0.46 | 0.33 | 0.36 | 0.43 | 0.56 | 0.35 | 0.54 | 0.43 | 0.41 | 0.55 |
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 exhibited some fluctuations over the last eight quarters. It decreased from 0.84 in Q4 2022 to 0.60 in Q4 2023, indicating a decline in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. Subsequently, the ratio slightly improved in Q3 2023, Q2 2023, and Q1 2023 but remained below the levels seen in the previous quarters.
Overall, the downward trend in the cash ratio suggests that Merck & Co Inc may have reduced liquidity available to cover its short-term obligations. This could be a result of increased investments in other assets or ongoing operational expenses that have impacted the company's cash position. It may be beneficial for the company to closely monitor its cash management practices to ensure it maintains adequate liquidity levels to meet its financial obligations in the future.
Peer comparison
Dec 31, 2023