Merck & Company Inc (MRK)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	33,683,000	33,972,000	34,072,000	28,074,000	28,745,000	28,482,000	28,684,000	30,586,000	30,690,000	22,907,000	24,033,000	24,002,000	25,360,000	26,321,000	26,156,000	21,637,000	22,736,000	22,677,000	22,771,000	22,721,000
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
Debt-to-assets ratio		0.32	0.32	0.33	0.26	0.26	0.27	0.27	0.29	0.29	0.25	0.27	0.26	0.28	0.29	0.29	0.25	0.27	0.27	0.27	0.28

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $33,683,000K ÷ $106,675,000K
= 0.32

The debt-to-assets ratio of Merck & Co Inc has been relatively stable over the past eight quarters, ranging from 0.28 to 0.35. This ratio indicates that, on average, around 28% to 35% of the company's assets are financed by debt.

A consistent debt-to-assets ratio suggests that Merck & Co Inc has effectively managed its debt levels relative to its total assets. A ratio of 0.33 in Q4 2023 and Q3 2023 indicates that one-third of the company's assets are funded by debt, which is a moderate level and generally considered healthy for most industries.

While the ratio increased slightly in Q2 2023 to 0.35, it remained within a reasonable range and did not suggest a significant deterioration in the company's financial position. In contrast, the ratio decreased in Q1 2023 to 0.29, indicating a lower reliance on debt to finance assets during that period.

Overall, the stability of the debt-to-assets ratio for Merck & Co Inc suggests a prudent approach to managing its capital structure and financial obligations. It is essential for investors and analysts to continue monitoring this ratio to assess the company's leverage and financial health.