Merck & Company Inc (MRK)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	46,313,000	37,581,000	45,991,000	38,184,000	25,317,000
Debt-to-capital ratio		0.43	0.47	0.38	0.45	0.50

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $34,462,000K ÷ ($34,462,000K + $46,313,000K)
= 0.43

The debt-to-capital ratio of Merck & Company Inc has shown a downward trend from 0.50 as of December 31, 2020, to 0.43 as of December 31, 2024. This ratio indicates the proportion of the company's capital that is financed through debt. A decreasing trend suggests that the company has been reducing its reliance on debt financing relative to its overall capital structure over the years. However, the ratio saw a slight increase in 2023 before decreasing again in 2024. Overall, maintaining a lower debt-to-capital ratio can signal financial stability and better risk management for the company.