Merck & Company Inc (MRK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 117,106,000 | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 |
| Operating ROA | 3.88% | -12.97% | 0.13% | -1.28% | -10.96% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,542,000K ÷ $117,106,000K
= 3.88%
Merck & Company Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In December 2020, the operating ROA was -10.96%, indicating that the company incurred operating losses in relation to its assets. By December 2021, there was a slight improvement with the operating ROA decreasing to -1.28%, suggesting that the company's operating performance relative to its assets had improved.
In December 2022, there was a further increase in the operating ROA to 0.13%, indicating that the company was generating a small positive return from its operating activities in relation to its assets. However, the trend reversed in December 2023, with the operating ROA decreasing significantly to -12.97%, indicating a substantial decline in operating performance relative to its assets.
The most recent data as of December 2024 shows a notable improvement in the operating ROA to 3.88%, indicating that the company's operating performance has strengthened, and it is generating a positive return on its assets.
Overall, the analysis of Merck & Company Inc's operating return on assets over the five-year period highlights a mix of negative and positive trends in the company's operating performance in relation to its asset base.
Peer comparison
Dec 31, 2024