Merck & Company Inc (MRK)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 19,920,000 | 1,877,000 | 16,437,000 | 14,570,000 | 8,407,000 |
| Revenue | US$ in thousands | 64,168,000 | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 |
| Pretax margin | 31.04% | 3.12% | 27.73% | 29.92% | 20.25% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $19,920,000K ÷ $64,168,000K
= 31.04%
Based on the provided data, Merck & Company Inc's pretax margin has shown some fluctuations over the years. In December 31, 2020, the pretax margin was 20.25%, indicating that the company generated 20.25 cents in pretax profit for every dollar of revenue.
There was a significant improvement in pretax margin to 29.92% by December 31, 2021, which suggests more efficient cost management or increased revenue generation strategies during that period. This upward trend continued into December 31, 2022, with a pretax margin of 27.73%.
However, there was a notable decline in pretax margin to 3.12% by December 31, 2023. This sharp decrease could signal challenges in controlling costs or a decrease in revenue relative to expenses.
The following year, in December 31, 2024, the pretax margin improved to 31.04%, indicating that the company may have implemented corrective measures to enhance profitability.
Overall, while there have been fluctuations in Merck & Company Inc's pretax margin over the years, the company seems to have managed to maintain a relatively healthy level of profitability, with some periods of improvement and challenges.
Peer comparison
Dec 31, 2024