Merck & Company Inc (MRK)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	4,538,000	-2,574,000	-633,000	-11,926,000	-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
Revenue (ttm)	US$ in thousands	64,168,000	63,174,000	62,479,000	61,402,000	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
Operating profit margin		7.07%	-4.07%	-1.01%	-19.42%	-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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,538,000K ÷ $64,168,000K
= 7.07%

The operating profit margin of Merck & Company Inc has exhibited significant variability over the periods presented. It started off at negative levels in March 2020 and continued to be negative until December 2021, with the margin reaching its lowest point of -28.60% in June 2021. However, there was a notable improvement in the operating profit margin in the subsequent quarters, turning positive in March 2022 at 3.39% and peaking at 8.33% in June 2022.

Following this positive trend, the operating profit margin fluctuated around the positive territory up to December 2024, demonstrating a rebound in profitability. Despite experiencing some declines in certain quarters, such as the negative margin in June 2023, the overall trend indicates a recovery and improvement in the company's operational efficiency.

It is essential for stakeholders to closely monitor Merck & Company Inc's operating profit margin to assess its ability to generate profits from its core business operations and sustain profitability in the long term.