Merck & Company Inc (MRK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 33,683,000 | 28,745,000 | 30,690,000 | 25,360,000 | 22,736,000 |
| Total assets | US$ in thousands | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 | 84,397,000 |
| Debt-to-assets ratio | 0.32 | 0.26 | 0.29 | 0.28 | 0.27 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $33,683,000K ÷ $106,675,000K
= 0.32
Merck & Co Inc's debt-to-assets ratio over the past five years has shown fluctuations. The ratio decreased from 0.35 in 2020 to 0.28 in 2022 before increasing to 0.33 in 2023. This indicates that the company has maintained a relatively conservative level of debt in relation to its total assets. A lower debt-to-assets ratio suggests lower financial risk, as a larger proportion of assets is financed through equity rather than debt. Overall, the trend in the debt-to-assets ratio for Merck & Co Inc demonstrates a moderate and stable approach to leveraging, potentially indicating a conservative financial strategy.
Peer comparison
Dec 31, 2023