Merck & Company Inc (MRK)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 32,168,000 | 31,954,000 | 29,977,000 | 33,402,000 | 35,722,000 | 33,561,000 | 32,116,000 | 31,184,000 | 30,266,000 | 31,058,000 | 28,665,000 | 26,909,000 | 27,764,000 | 26,577,000 | 29,343,000 | 26,174,000 | 27,483,000 | 26,142,000 | 24,298,000 | 25,351,000 |
| 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 |
| Current ratio | 1.25 | 1.38 | 1.28 | 1.44 | 1.47 | 1.46 | 1.39 | 1.40 | 1.27 | 1.31 | 1.31 | 1.02 | 1.02 | 1.30 | 1.32 | 1.11 | 1.24 | 1.26 | 1.21 | 1.37 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $32,168,000K ÷ $25,694,000K
= 1.25
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates better liquidity and financial health.
Looking at Merck & Co Inc's current ratio over the past eight quarters, we can see some fluctuations. In Q4 2023, the current ratio was 1.25, which decreased from the previous quarter but was still above 1, indicating that the company had sufficient current assets to cover its current liabilities.
In the preceding quarters, the current ratio ranged between 1.28 to 1.47, showing relative stability and consistency in managing short-term obligations. The trend indicates that Merck & Co Inc has maintained a healthy liquidity position, with assets easily convertible into cash to meet its short-term obligations.
Overall, the company's current ratio has remained within a reasonable range, suggesting effective management of working capital and a strong financial position to meet its short-term obligations. It is essential to continue monitoring this ratio to ensure ongoing liquidity and financial stability.
Peer comparison
Dec 31, 2023