Merck & Company Inc (MRK)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,542,000 | -13,834,000 | 147,000 | -1,349,000 | -10,038,000 |
| Revenue | US$ in thousands | 64,168,000 | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 |
| Operating profit margin | 7.08% | -23.01% | 0.25% | -2.77% | -24.18% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,542,000K ÷ $64,168,000K
= 7.08%
The operating profit margin of Merck & Company Inc has shown varying trends over the past five years. As of December 31, 2020, the company reported a negative operating profit margin of -24.18%, indicating that its operating expenses exceeded its operating income significantly. However, there was an improvement in the operating profit margin in the following years. By December 31, 2021, the margin decreased to -2.77%, still negative but showing a significant narrowing of the loss margin.
In the subsequent years, the operating profit margin continued to improve. As of December 31, 2022, the margin turned positive, standing at 0.25%, indicating that the company was able to generate a profit from its core operations. This positive trend continued in December 31, 2024, where the operating profit margin further increased to 7.08%, highlighting an enhancement in the company's operational efficiency and profitability.
However, there was a slight setback in December 31, 2023, where the operating profit margin decreased to -23.01%, showing a temporary decline in profitability. Overall, the positive trend in the operating profit margin of Merck & Company Inc over the years signifies an improvement in the company's ability to control costs and generate profits from its core business activities, thereby enhancing its overall financial performance.
Peer comparison
Dec 31, 2024