Merck & Company Inc (MRK)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 17,117,000 | 365,000 | 14,519,000 | 13,049,000 | 7,067,000 |
| Revenue | US$ in thousands | 64,168,000 | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 |
| Net profit margin | 26.68% | 0.61% | 24.49% | 26.79% | 17.02% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $17,117,000K ÷ $64,168,000K
= 26.68%
Based on the data provided, Merck & Company Inc's net profit margin has exhibited fluctuations over the past five years. In December 2020, the company's net profit margin stood at 17.02%, showing a moderate level of profitability. Over the next two years, there was a significant improvement as the net profit margin increased to 26.79% by December 2021 and slightly dipped to 24.49% by December 2022.
However, there was a sharp decline in profitability by December 2023 when the net profit margin plummeted to 0.61%. This steep decline could be indicative of various factors such as increased expenses, lower revenues, or one-time charges affecting the bottom line. Nevertheless, the company managed to bounce back strongly in December 2024, with the net profit margin recovering to 26.68%.
Overall, Merck & Company Inc's net profit margin performance highlights both strengths and potential vulnerabilities within its operations. It is crucial for the company to manage its costs effectively, optimize revenue streams, and adapt to changing market conditions to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024