Merck & Company Inc (MRK)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 117,106,000 | 117,532,000 | 112,630,000 | 105,849,000 | 106,675,000 | 106,727,000 | 104,469,000 | 107,796,000 | 109,160,000 | 107,081,000 | 107,095,000 | 106,668,000 | 105,694,000 | 93,494,000 | 90,688,000 | 90,847,000 | 91,588,000 | 89,800,000 | 90,615,000 | 84,913,000 |
| Operating ROA | 3.88% | -2.19% | -0.56% | -11.27% | -12.94% | -7.93% | -9.81% | -0.04% | 1.80% | 3.63% | 4.45% | 1.71% | -1.24% | -11.62% | -13.85% | -12.29% | -10.88% | -2.19% | -4.58% | -5.04% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,538,000K ÷ $117,106,000K
= 3.88%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company generates profits from its assets utilized in its operations. Looking at the historical trend for Merck & Company Inc:
- From March 2020 to December 2021, the operating ROA showed a consistently negative trend, reaching its lowest point in June 2021 at -13.85%. This indicates that during this period, the company was not effectively utilizing its assets to generate operating profits.
- Starting from March 2022, there was a notable improvement in the operating ROA, turning positive and reaching its peak at 4.45% in June 2022. This could signify better operational efficiency and enhanced profitability from the assets.
- However, the operating ROA experienced fluctuations in the subsequent quarters, with some periods showing negative returns, particularly in December 2023 and March 2024.
- By December 2024, the operating ROA rebounded to a positive 3.88%, suggesting a potential resurgence in the company's ability to generate operating income from its assets.
Overall, the analysis of Merck & Company Inc's operating ROA indicates a mix of challenges and improvements in effectively utilizing its assets to drive operational profits over the reviewed period.
Peer comparison
Dec 31, 2024