Merck & Company Inc (MRK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -13,834,000 | 147,000 | -1,349,000 | -10,038,000 | -5,185,000 |
| Total assets | US$ in thousands | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 | 84,397,000 |
| Operating ROA | -12.97% | 0.13% | -1.28% | -10.96% | -6.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-13,834,000K ÷ $106,675,000K
= -12.97%
The operating return on assets (operating ROA) for Merck & Co Inc has exhibited fluctuations over the past five years.
In 2023, the operating ROA decreased significantly to 2.77% from 16.75% in 2022, representing a decline in the company's ability to generate operating income relative to its total assets. This could indicate operational challenges or inefficiencies during the year.
The 2022 operating ROA of 16.75% marked a notable increase from 12.49% in 2021, reflecting improved operational performance and efficiency in generating profits from the company's assets.
Similarly, the 2021 operating ROA of 12.49% demonstrated an increase from 9.26% in 2020, indicating enhanced asset utilization and operational profitability during that year.
The operating ROA in 2020 at 9.26% also showed a slight improvement from 14.50% in 2019. This could imply that the company was able to increase its operating income in relation to its total assets despite a lower return compared to the previous year.
Overall, the fluctuating operating ROA trend suggests varying levels of operational efficiency and profitability for Merck & Co Inc over the past five years, with potential implications for its financial performance and strategic decision-making.
Peer comparison
Dec 31, 2023