Merck & Company Inc (MRK)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	34,462,000	33,683,000	28,745,000	30,690,000	25,360,000
Total assets	US$ in thousands	117,106,000	106,675,000	109,160,000	105,694,000	91,588,000
Debt-to-assets ratio		0.29	0.32	0.26	0.29	0.28

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $34,462,000K ÷ $117,106,000K
= 0.29

The debt-to-assets ratio of Merck & Company Inc has ranged from 0.26 to 0.32 over the period from December 31, 2020, to December 31, 2024. This ratio indicates the proportion of the company's assets that are financed through debt. A lower ratio suggests that a smaller portion of the assets is funded by debt, which may indicate lower financial risk and a stronger financial position. Conversely, a higher ratio could suggest higher financial leverage and potential increased risk. In Merck's case, the ratio has remained relatively stable around 0.29, indicating a moderate level of debt utilization to finance its assets. It would be important to consider industry benchmarks and compare with the company's historical data to understand the significance of these ratios in the context of Merck's financial health and strategy.