Merck & Company Inc (MRK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 50.91% | 50.47% | 50.10% | 49.59% | 48.63% | 49.65% | 49.03% | 48.77% | 48.51% | 41.01% | 41.66% | 42.00% | 42.09% | 58.13% | 51.95% | 49.64% | 48.70% | 38.80% | 39.25% | 37.62% |
| Operating profit margin | -22.97% | -14.27% | -17.57% | -0.07% | 3.31% | 6.60% | 8.33% | 3.39% | -2.70% | -23.55% | -28.60% | -26.68% | -23.03% | -5.40% | -10.92% | -10.61% | -12.89% | -14.45% | -11.52% | -14.61% |
| Pretax margin | 3.12% | 12.53% | 9.26% | 26.30% | 27.72% | 28.43% | 32.27% | 29.67% | 29.92% | 18.86% | 15.40% | 19.38% | 19.71% | 36.23% | 32.25% | 30.04% | 29.16% | 24.80% | 26.40% | 24.39% |
| Net profit margin | 0.61% | 7.77% | 5.34% | 22.52% | 24.49% | 25.88% | 29.00% | 26.27% | 26.79% | 15.60% | 12.69% | 16.79% | 16.33% | 31.57% | 27.61% | 25.14% | 25.16% | 20.26% | 21.10% | 19.50% |
Based on the profitability ratios of Merck & Co Inc, we observe the following trends:
1. Gross Profit Margin: The gross profit margin has been relatively stable, ranging between 70.48% and 73.17% over the past eight quarters. This suggests that Merck has been effectively managing its cost of goods sold and generating consistent profits from its core operations.
2. Operating Profit Margin: The operating profit margin has shown some variability, with the highest margin of 32.11% in Q2 2022 and the lowest margin of 4.91% in Q4 2023. This variability may indicate fluctuations in operating expenses and efficiency in managing operating costs.
3. Pre-Tax Margin: The pre-tax margin has also displayed fluctuations, with the highest margin of 32.39% in Q2 2022 and the lowest margin of 3.14% in Q4 2023. This suggests that Merck's profitability before taxes has been sensitive to factors such as changes in revenues, expenses, and non-operating items.
4. Net Profit Margin: The net profit margin has shown a similar trend to the pre-tax margin, with fluctuations between 0.61% and 27.00% over the past eight quarters. The lowest margin in Q4 2023 may indicate challenges in generating profits after accounting for all expenses, including taxes.
Overall, while Merck & Co Inc has demonstrated strong gross profit margins, indicating efficient cost management, there are fluctuations in operating, pre-tax, and net profit margins that suggest the company may face challenges in consistently translating revenues into bottom-line profits. Companies should analyze the underlying factors driving these fluctuations to improve overall profitability and financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 0.34% | 4.32% | 2.98% | 12.09% | 13.30% | 14.25% | 15.48% | 13.29% | 12.35% | 7.70% | 6.14% | 7.74% | 7.72% | 12.83% | 11.56% | 11.95% | 11.66% | 11.18% | 11.15% | 10.20% |
| Return on total capital | 4.24% | 11.31% | 8.79% | 21.60% | 23.28% | 24.27% | 26.89% | 23.60% | 22.33% | 16.20% | 13.21% | 17.53% | 18.48% | 25.33% | 24.37% | 27.22% | 25.29% | 24.79% | 24.90% | 22.49% |
| Return on equity (ROE) | 0.97% | 11.17% | 8.04% | 27.82% | 31.57% | 34.32% | 38.34% | 34.68% | 34.17% | 20.11% | 16.73% | 26.08% | 27.92% | 39.46% | 37.91% | 38.72% | 37.99% | 34.70% | 33.88% | 30.50% |
Merck & Co Inc's profitability ratios have shown fluctuations over the past eight quarters. The Operating return on assets (Operating ROA) has ranged from 2.77% to 16.75%, with a significant decrease in Q4 2023 compared to the previous quarters. This indicates that the company's operating income generated relative to its total assets has declined.
The Return on assets (ROA) has varied between 0.34% and 13.30%, with Q4 2023 showing the lowest return in the period. This metric reflects the company's overall efficiency in generating profits from its assets, and the decreasing trend suggests a potential decline in asset utilization efficiency.
The Return on total capital has ranged from 4.07% to 23.84%, with Q4 2023 exhibiting a substantial decrease compared to the previous quarters. This ratio evaluates the company's ability to generate returns from its total capital employed, including debt and equity. The decreasing trend indicates a potential decrease in overall profitability relative to the total capital invested.
The Return on equity (ROE) has fluctuated between 0.97% and 34.68%, with Q4 2023 showing a notable decrease compared to the preceding quarters. ROE measures the company's profitability relative to shareholder equity and the declining trend signals potential challenges in maximizing returns to shareholders.
Overall, Merck & Co Inc's profitability ratios have shown inconsistency and a downward trend in the most recent quarter, highlighting the need for further analysis to understand the factors influencing the company's profitability performance.