Merck & Company Inc (MRK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 13,242,000 | 14,593,000 | 11,304,000 | 5,579,000 | 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 |
| Short-term investments | US$ in thousands | 1,367,000 | 984,000 | 1,076,000 | 948,000 | 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 |
| Total current liabilities | US$ in thousands | 28,420,000 | 29,586,000 | 26,060,000 | 25,099,000 | 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 |
| Cash ratio | 0.51 | 0.53 | 0.48 | 0.26 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,242,000K
+ $1,367,000K)
÷ $28,420,000K
= 0.51
The cash ratio of Merck & Company Inc has shown some fluctuation over the past few years, ranging from a low of 0.26 to a high of 0.56. A cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A ratio of 1 or higher is generally considered healthy, indicating that the company has enough cash to cover its short-term obligations.
Analyzing the data provided, we can see that the cash ratio of Merck & Company Inc has generally been on the lower side, with values mostly below 0.5. This suggests that the company may not have a significant amount of cash on hand relative to its current liabilities. It is important to note that a low cash ratio does not necessarily indicate financial distress, as companies in certain industries may have different working capital requirements.
The trend in the cash ratio of Merck & Company Inc shows some variation, with occasional increases and decreases. It would be beneficial for stakeholders to further investigate the reasons behind these fluctuations to assess the company's liquidity management and financial health. It is recommended to also consider other liquidity ratios and financial metrics in conjunction with the cash ratio to gain a comprehensive understanding of the company's financial position.
Peer comparison
Dec 31, 2024