Merck & Company Inc (MRK)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 365,000 | 4,608,000 | 3,111,000 | 13,030,000 | 14,519,000 | 15,260,000 | 16,579,000 | 14,180,000 | 13,049,000 | 7,197,000 | 5,571,000 | 7,028,000 | 7,068,000 | 11,518,000 | 10,478,000 | 10,146,000 | 9,842,000 | 9,313,000 | 9,362,000 | 8,399,000 |
| Total assets | US$ in thousands | 106,675,000 | 106,727,000 | 104,469,000 | 107,796,000 | 109,160,000 | 107,081,000 | 107,095,000 | 106,668,000 | 105,694,000 | 93,494,000 | 90,688,000 | 90,847,000 | 91,588,000 | 89,800,000 | 90,615,000 | 84,913,000 | 84,397,000 | 83,331,000 | 83,965,000 | 82,354,000 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $365,000K ÷ $106,675,000K
= 0.34%
To analyze Merck & Co Inc's return on assets (ROA) based on the provided data, we can observe the trend over the past eight quarters.
The ROA for Merck & Co Inc has fluctuated significantly over the period under review. In Q1 2022, the ROA stood at 13.29%, indicating that the company generated $0.1329 in profit for every $100 of assets it owned. Subsequently, the ROA increased to 15.48% in Q2 2022 before declining slightly in Q3 2022 to 14.25%.
However, there was a pronounced decrease in ROA in the following quarters. In Q4 2022, the ROA dropped to 13.30%, and a further decline was observed in Q1 2023 to 12.09%. The trend then changed in Q2 2023, with a sudden increase in ROA to 2.98%, followed by a substantial increase to 4.32% in Q3 2023.
The most recent data point shows a ROA of 0.34% in Q4 2023. This significant decrease in ROA compared to the previous quarters could indicate challenges or inefficiencies in asset utilization or profitability during this period.
Overall, the fluctuating trend in the ROA of Merck & Co Inc suggests variations in the company's ability to generate profits relative to its total assets. Further analysis and consideration of the company's financial and operational performance would be necessary to fully understand the factors influencing these ROA fluctuations.
Peer comparison
Dec 31, 2023