Merck & Company Inc (MRK)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	17,117,000	365,000	14,519,000	13,049,000	7,067,000
Total assets	US$ in thousands	117,106,000	106,675,000	109,160,000	105,694,000	91,588,000
ROA		14.62%	0.34%	13.30%	12.35%	7.72%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $17,117,000K ÷ $117,106,000K
= 14.62%

Based on the provided data, Merck & Company Inc's return on assets (ROA) has shown fluctuations over the past five years. The ROA increased from 7.72% in December 2020 to 12.35% in December 2021, indicating improved efficiency in generating profits relative to its total assets.

In December 2022, the ROA further increased to 13.30%, suggesting continued strength in utilizing its assets to generate returns. However, there was a significant decline in December 2023, with the ROA plummeting to 0.34%. This sharp decrease may raise concerns about the company's asset management and profitability during that period.

Nonetheless, Merck & Company Inc's performance rebounded strongly in December 2024, with the ROA reaching 14.62%, surpassing the levels seen in the earlier years. This resurgence indicates a potential turnaround in asset utilization and profitability for the company.

Overall, the fluctuating trend in Merck & Company Inc's ROA signifies variations in the company's ability to generate profits from its assets. Continued monitoring and analysis of the company's asset management strategies will be essential to sustain and improve its return on assets in the future.