Merck & Company Inc (MRK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 365,000 | 14,519,000 | 13,049,000 | 7,067,000 | 9,843,000 |
| Total assets | US$ in thousands | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 | 84,397,000 |
| ROA | 0.34% | 13.30% | 12.35% | 7.72% | 11.66% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $365,000K ÷ $106,675,000K
= 0.34%
The return on assets (ROA) for Merck & Co Inc has varied over the past five years. In 2023, the ROA was 0.34%, a significant decrease compared to the previous years. The ROA was highest in 2022 at 13.30%, indicating that the company generated a substantial return relative to its total assets that year. In 2021 and 2019, the ROA was also relatively high at 12.35% and 11.66% respectively. However, there was a noticeable decline in the ROA in 2020 to 7.72%.
Overall, the ROA trend for Merck & Co Inc demonstrates variability in the company's ability to generate profit from its assets over the years. The significant decrease in ROA in 2023 compared to previous years may indicate potential challenges or changes in the company's operations or profitability levels. Further analysis of the company's financial performance and asset utilization is warranted to understand the factors contributing to the fluctuation in ROA.
Peer comparison
Dec 31, 2023