Merck & Company Inc (MRK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 37,581,000 | 45,991,000 | 38,184,000 | 25,317,000 | 25,907,000 |
| ROE | 0.97% | 31.57% | 34.17% | 27.91% | 37.99% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $365,000K ÷ $37,581,000K
= 0.97%
Merck & Co Inc's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE was 0.97% as of December 31, 2023, a significant decline from the previous year's figure of 31.57%. This notable decrease indicates a significant drop in the firm's ability to generate profits from its shareholders' equity in 2023.
Comparing to the prior years, the ROE was highest in 2021 at 34.17%, indicating the highest level of profitability relative to shareholder equity during that period. The 2021 performance represented a slight decrease from the 2019 figure of 37.99%. The 2020 ROE of 27.91% was also lower than both 2019 and 2021, indicating a temporary dip in profitability during that year.
Overall, the downward trend in ROE from 2019 to 2023 suggests a potential decline in the company's efficiency in generating profits using shareholders' equity. This performance should be closely monitored and further analyzed to determine the underlying factors driving these fluctuations in ROE for Merck & Co Inc.
Peer comparison
Dec 31, 2023