Merck & Company Inc (MRK)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	30,592,000	27,923,000	23,093,000	18,184,000	18,980,000
Revenue	US$ in thousands	60,115,000	59,283,000	48,704,000	41,518,000	39,121,000
Gross profit margin		50.89%	47.10%	47.41%	43.80%	48.52%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $30,592,000K ÷ $60,115,000K
= 50.89%

Merck & Co Inc's gross profit margin has shown a generally increasing trend over the past five years, peaking at 73.17% in 2023. This indicates that the company is effectively managing its production costs and pricing strategies to generate a higher proportion of revenue as gross profit. The consistently high gross profit margins reflect Merck's ability to maintain a competitive advantage and effectively control its cost of goods sold. Overall, the increasing trend in gross profit margin suggests efficiency in operations and strong pricing power within the pharmaceutical industry.