Merck & Company Inc (MRK)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 17,117,000 | 12,148,000 | 13,736,000 | 2,306,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 46,313,000 | 44,502,000 | 43,582,000 | 40,364,000 | 37,581,000 | 41,246,000 | 38,693,000 | 46,834,000 | 45,991,000 | 44,458,000 | 43,243,000 | 40,883,000 | 38,184,000 | 35,794,000 | 33,294,000 | 26,945,000 | 25,317,000 | 29,186,000 | 27,642,000 | 26,205,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $17,117,000K ÷ $46,313,000K
= 36.96%
The return on equity (ROE) for Merck & Company Inc has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024.
Initially, the ROE was strong, starting at 38.72% in March 2020, and remained relatively high through the first three quarters of 2020, between 37.91% and 39.46%. However, there was a significant decline in ROE to 27.92% by the end of December 2020, which continued into 2021, reaching 26.08% by March 2021.
The trend continued with a further drop in ROE to 16.73% by June 2021, before seeing a slight recovery to 20.11% by September 2021. There was a more notable improvement by the end of 2021, with ROE rising to 34.17% in December 2021.
The positive momentum was sustained into 2022, with ROE ranging from 34.68% in March to 38.34% in June. However, there was a decrease to 34.32% by September 2022, followed by a further decline to 31.57% by December 2022.
The downward trend continued into 2023, with ROE decreasing to 27.82% in March, further dropping to 8.04% in June, and then to 0.97% by the end of December. The company managed to reverse this trend in 2024, with ROE increasing significantly to 5.71% in March, 31.52% in June, and 27.30% by September. By the end of December 2024, the ROE had improved to 36.96%.
Overall, the ROE of Merck & Company Inc has shown some volatility, indicating fluctuations in the company's profitability relative to its shareholders' equity over the analyzed period. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024