Merck & Company Inc (MRK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,877,000 | 16,437,000 | 14,570,000 | 8,407,000 | 11,408,000 |
| Revenue | US$ in thousands | 60,115,000 | 59,283,000 | 48,704,000 | 41,518,000 | 39,121,000 |
| Pretax margin | 3.12% | 27.73% | 29.92% | 20.25% | 29.16% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,877,000K ÷ $60,115,000K
= 3.12%
The pretax margin of Merck & Co Inc has shown fluctuations over the past five years. In 2021, the pretax margin was relatively high at 28.50%, reflecting strong profitability before accounting for taxes. This was preceded by a similarly high pretax margin of 27.74% in 2022.
However, there was a significant drop in the pretax margin in 2020 to 18.32%, which rebounded in 2019 to 24.47%. The pretax margin in 2023 further decreased to 3.14%, marking a substantial decline compared to the previous years.
The fluctuation in the pretax margin may indicate varying levels of operating efficiency, cost management, and revenue generation by Merck & Co Inc over the years. Further analysis of the underlying factors contributing to these changes would be necessary to fully understand the dynamics of the company's profitability before tax implications.
Peer comparison
Dec 31, 2023