Merck & Company Inc (MRK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.17% | 54.54% | 53.94% | 52.54% | 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% |
| Operating profit margin | 7.07% | -4.07% | -1.01% | -19.42% | -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% |
| Pretax margin | 31.04% | 21.69% | 24.38% | 6.35% | 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% |
| Net profit margin | 26.68% | 19.23% | 21.98% | 3.76% | 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% |
Merck & Company Inc's profitability ratios display fluctuations over the reported periods. The gross profit margin of the company experienced a general upward trend from March 2020 to December 2024, indicating an improvement in its ability to generate profits from its revenue. The operating profit margin showed significant variability, with negative margins in the initial period turning positive and then fluctuating thereafter. This suggests that the company faced challenges in controlling its operating expenses during certain periods.
The pretax margin generally declined from March 2020 to March 2023 before showing improvement in the subsequent periods. This indicates that Merck & Company Inc had varying levels of efficiency in generating profits before accounting for taxes and interest expenses. The net profit margin also followed a fluctuating pattern, with periods of decline and subsequent recovery. This suggests that the company's bottom line performance was impacted by factors such as operating costs and taxes.
Overall, while the gross profit margin showed consistent improvement, the operating, pretax, and net profit margins displayed fluctuations over the reporting periods. This indicates that Merck & Company Inc may have faced challenges in maintaining consistent profitability levels, possibly due to changes in operating efficiency, cost management, and other factors influencing its financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 14.62% | 10.34% | 12.20% | 2.18% | 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% |
| Return on total capital | 9.06% | 11.22% | 17.31% | 7.14% | 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% |
| Return on equity (ROE) | 36.96% | 27.30% | 31.52% | 5.71% | 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% |
Based on the provided data, we can observe the following trends in Merck & Company Inc's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- Merck experienced negative Operating ROA figures for the periods spanning March 2020 to September 2022, indicating challenges in generating profits from its operational assets.
- However, there was a positive turnaround starting from March 2022, with the Operating ROA gradually improving, reaching 3.88% by December 2024.
2. Return on Assets (ROA):
- The ROA ratio reflects the company's overall ability to generate profits from its total assets.
- Merck's ROA fluctuated over the years, with peaks in March 2022 and December 2024 at 13.29% and 14.62% respectively.
- There were periods of decline, notably in September 2023 and December 2023, where the ROA dropped to 4.32% and 0.34% respectively.
3. Return on Total Capital:
- This ratio indicates the efficiency of utilizing both debt and equity capital to generate profits.
- Merck's Return on Total Capital exhibited fluctuations, with a peak of 26.89% in June 2022 and a low of 4.24% in December 2023.
- The ratio generally improved towards the end of the period, reaching 9.06% by December 2024.
4. Return on Equity (ROE):
- ROE reflects the company's ability to generate profits from shareholders' equity.
- Merck's ROE showed variations over time, with the highest point at 39.46% in September 2020 and the lowest at 0.97% in December 2023.
- The ROE trend showed some recovery in the later periods, reaching 36.96% in December 2024.
In summary, Merck & Company Inc exhibited fluctuations in profitability ratios over the years, experiencing challenges in profitability in the earlier years but showing signs of improvement in the latter periods. The company's Return on Assets, Return on Total Capital, and Return on Equity ratios improved towards the end of the analyzed period, indicating enhanced efficiency in utilizing assets and capital to generate profits.