Merck & Company Inc (MRK)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	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	84,397,000	83,331,000	83,965,000	82,354,000
Operating ROA		-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%	-5.98%	-7.97%	-6.09%	-7.64%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-13,809,000K ÷ $106,675,000K
= -12.94%

The operating return on assets (ROA) for Merck & Co Inc has shown some fluctuations over the past 8 quarters, ranging from a low of 2.77% in Q4 2023 to a high of 16.75% in Q4 2022. Overall, the company's operating ROA has displayed a general upward trend from Q1 2022 to Q1 2023, indicating improved efficiency in generating operating profits from its assets during this period. However, there was a significant decline in Q4 2023 compared to the previous quarters.

The variability in operating ROA over the quarters could be influenced by various factors, such as changes in revenue, operating expenses, asset base, and operational efficiency. It is essential for stakeholders to closely monitor these fluctuations in operating ROA to assess the company's operational performance and efficiency in utilizing its assets to generate profits.