Merck & Company Inc (MRK)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	36,044,000	30,592,000	27,923,000	23,093,000	18,184,000
Revenue	US$ in thousands	64,168,000	60,115,000	59,283,000	48,704,000	41,518,000
Gross profit margin		56.17%	50.89%	47.10%	47.41%	43.80%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $36,044,000K ÷ $64,168,000K
= 56.17%

Based on the data provided, Merck & Company Inc's gross profit margin has shown a positive trend over the years. The gross profit margin increased from 43.80% as of December 31, 2020, to 56.17% as of December 31, 2024. This indicates that the company has been able to effectively manage its cost of goods sold relative to its sales revenue, resulting in a higher percentage of revenue retained as gross profit.

The steady improvement in the gross profit margin reflects Merck & Company Inc's ability to maintain pricing power, control production costs, or enhance product mix. A rising gross profit margin is generally considered a positive indicator of a company's operational efficiency and profitability.

It is worth noting that the significant increase in the gross profit margin from 2023 to 2024, jumping from 50.89% to 56.17%, indicates a notable performance improvement within the company's operations during that period. This suggests that Merck & Company Inc may have implemented strategic initiatives that positively impacted its gross profitability.

Overall, the increasing trend in Merck & Company Inc's gross profit margin demonstrates the company's ability to generate more gross profit from its sales over time, which is a favorable sign for investors and stakeholders.