Merck & Company Inc (MRK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 38,782,000 | 32,168,000 | 35,722,000 | 30,266,000 | 27,764,000 |
| Total current liabilities | US$ in thousands | 28,420,000 | 25,694,000 | 24,239,000 | 23,872,000 | 27,327,000 |
| Current ratio | 1.36 | 1.25 | 1.47 | 1.27 | 1.02 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $38,782,000K ÷ $28,420,000K
= 1.36
The current ratio of Merck & Company Inc has shown a consistent upward trend over the past five years, increasing from 1.02 in December 2020 to 1.36 in December 2024. This indicates that the company's current assets remain healthy in relation to its current liabilities. The current ratio exceeding 1 signifies that Merck & Company Inc has more than enough current assets to cover its short-term obligations. This improvement suggests a strengthening liquidity position for the company, reflecting its ability to pay off its short-term debts comfortably. While there was a slight dip in the current ratio in 2023, overall, the upward trend indicates a positive financial health for Merck & Company Inc in terms of managing its short-term liquidity needs.
Peer comparison
Dec 31, 2024