Merck & Company Inc (MRK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.25 | 1.47 | 1.27 | 1.02 | 1.24 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $32,168,000K ÷ $25,694,000K
= 1.25
The current ratio of Merck & Co Inc has fluctuated over the past five years, ranging from 1.02 in 2020 to 1.47 in 2022. The current ratio measures the company's ability to cover short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally a positive sign.
In 2023, Merck & Co Inc's current ratio decreased to 1.25, indicating a slight decline in its ability to cover short-term obligations with current assets compared to the previous year. While the ratio is still above 1, suggesting the company has sufficient current assets to meet its short-term liabilities, a declining trend may warrant further investigation into the company's liquidity management.
Overall, although the current ratio of Merck & Co Inc has varied over the years, it generally indicates that the company has managed its short-term liquidity well, ensuring it can meet its current obligations. However, monitoring this ratio over time is important to understand any potential shifts in the company's liquidity position.
Peer comparison
Dec 31, 2023