Merck & Company Inc (MRK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,242,000 | 6,841,000 | 12,694,000 | 8,096,000 | 8,050,000 |
| Short-term investments | US$ in thousands | 1,367,000 | 1,016,000 | 498,000 | 0 | 1,787,000 |
| Receivables | US$ in thousands | 10,278,000 | 10,349,000 | 9,450,000 | 9,230,000 | 7,851,000 |
| Total current liabilities | US$ in thousands | 28,420,000 | 25,694,000 | 24,239,000 | 23,872,000 | 27,327,000 |
| Quick ratio | 0.88 | 0.71 | 0.93 | 0.73 | 0.65 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,242,000K
+ $1,367,000K
+ $10,278,000K)
÷ $28,420,000K
= 0.88
The quick ratio of Merck & Company Inc has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio was reported at 0.65, indicating that the company had $0.65 of liquid assets available to cover each dollar of current liabilities. By December 31, 2021, the ratio improved to 0.73, suggesting a slight increase in the company's ability to meet short-term obligations with its quick assets.
Subsequently, by December 31, 2022, the quick ratio further increased to 0.93, indicating a significant enhancement in the company's liquidity position. This improvement implies that Merck & Company had nearly $0.93 in liquid assets for every dollar of current liabilities, reflecting a stronger financial position to meet its short-term obligations.
However, in the following year, the quick ratio declined to 0.71 as of December 31, 2023, signaling a slight decrease in liquidity compared to the previous period. This reduction may indicate potential challenges in meeting short-term financial commitments with available quick assets.
Finally, as of December 31, 2024, the quick ratio increased to 0.88, illustrating a recovery in the company's liquidity position compared to the previous year. This rise suggests that Merck & Company had $0.88 in liquid assets for each dollar of current liabilities, indicating an improved ability to cover short-term obligations.
Overall, the trend in Merck & Company Inc's quick ratio demonstrates varying levels of liquidity over the five-year period, with fluctuations that may reflect changes in the company's ability to meet its short-term financial obligations with readily available assets.
Peer comparison
Dec 31, 2024