Merck & Company Inc (MRK)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-13,809,000	-8,463,000	-10,244,000	-41,000	1,965,000	3,890,000	4,765,000	1,828,000	-1,314,000	-10,863,000	-12,556,000	-11,169,000	-9,969,000	-1,971,000	-4,146,000	-4,282,000	-5,044,000	-6,644,000	-5,111,000	-6,291,000
Revenue (ttm)	US$ in thousands	60,114,000	59,314,000	58,311,000	57,869,000	59,283,000	58,974,000	57,169,000	53,978,000	48,704,000	46,131,000	43,906,000	41,857,000	43,287,000	36,488,000	37,956,000	40,363,000	39,122,000	45,971,000	44,368,000	43,073,000
Operating profit margin		-22.97%	-14.27%	-17.57%	-0.07%	3.31%	6.60%	8.33%	3.39%	-2.70%	-23.55%	-28.60%	-26.68%	-23.03%	-5.40%	-10.92%	-10.61%	-12.89%	-14.45%	-11.52%	-14.61%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-13,809,000K ÷ $60,114,000K
= -22.97%

The operating profit margin of Merck & Co Inc has exhibited fluctuations over the past eight quarters. In Q4 2023, the operating profit margin dropped to 4.91%, significantly lower than the previous quarter's margin of 16.04% in Q3 2023. This decline may indicate a decrease in profitability and efficiency in the company's operations during this period.

Comparing Q4 2023 to the same quarter in the previous year, there is a substantial decrease from an operating profit margin of 30.84% in Q4 2022. This decline suggests a significant shift in the company's performance year-over-year.

It is important to note that the operating profit margin experienced variations within the quarters, with Q3 2022 displaying the highest margin of 32.11% and Q1 2023 showing the lowest margin of 29.68%. These fluctuations may be influenced by various factors such as changes in revenue, operating expenses, or one-time events impacting profitability.

Overall, a closer examination of Merck & Co Inc's operating profit margin trends can provide valuable insights into the company's financial health and operational efficiency over time.