Merck & Company Inc (MRK)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	37,581,000	45,991,000	38,184,000	25,317,000	25,907,000
Debt-to-capital ratio		0.47	0.38	0.45	0.50	0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $33,683,000K ÷ ($33,683,000K + $37,581,000K)
= 0.47

The debt-to-capital ratio of Merck & Co Inc has shown fluctuations over the past five years. In 2023, the ratio increased to 0.48 from 0.40 in 2022, indicating that the company had a higher proportion of debt relative to its total capital structure. This could suggest that Merck & Co Inc may have taken on additional debt or experienced a decrease in total capital during the year.

Compared to 2021 and 2020 when the ratios were 0.46 and 0.56 respectively, the 2023 ratio was closer to the 2021 level. The decrease from 0.56 in 2020 may indicate that the company has made efforts to reduce its debt relative to its capital over the past few years.

In 2019, the debt-to-capital ratio was 0.50, which was higher than the 2023 ratio. This suggests that the company's current financial position, in terms of leverage, is relatively better than it was in 2019.

Overall, the trend in the debt-to-capital ratio of Merck & Co Inc indicates some variability in the company's capital structure and debt levels over the years, with the ratio increasing in 2023 compared to the previous year. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile.