Merck & Company Inc (MRK)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 365,000 | 14,519,000 | 13,049,000 | 7,067,000 | 9,843,000 |
| Revenue | US$ in thousands | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 | 39,121,000 |
| Net profit margin | 0.61% | 24.49% | 26.79% | 17.02% | 25.16% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $365,000K ÷ $60,115,000K
= 0.61%
Net profit margin is a crucial financial metric that measures the percentage of revenue that translates into profit after accounting for all expenses. In the case of Merck & Co Inc, the net profit margin has shown significant fluctuations over the past five years.
In 2023, the net profit margin dropped sharply to 0.61%, a significant decrease from the previous year's margin of 24.49%. This decline may indicate challenges in controlling costs or generating sufficient revenue to offset expenses.
The year 2022 marked a substantial decrease in net profit margin compared to 2021, with a margin of 24.49% compared to 26.79%. This decline could suggest issues affecting profitability, such as increased expenses or lower revenue efficiency.
The highest net profit margin in the data set was recorded in 2021 at 26.79%, reflecting a strong profitability performance. This may indicate effective cost management, revenue growth, or both during that period.
In 2020, the net profit margin was 14.72%, showing a moderate decrease from the previous year's level. This decline could signal challenges in maintaining profitability in the face of changing market conditions or increased costs.
The data for 2019 reports a net profit margin of 21.01%, which indicates relatively strong profitability compared to 2020 but lower than the peak achieved in 2021.
Overall, the trend in Merck & Co Inc's net profit margin shows variability over the years, suggesting fluctuations in profitability performance. Further analysis of the company's financial statements and operating environment would be necessary to understand the factors driving these changes and assess the company's future profitability prospects.
Peer comparison
Dec 31, 2023