Merck & Company Inc (MRK)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	37,581,000	41,246,000	38,693,000	46,834,000	45,991,000	44,458,000	43,243,000	40,883,000	38,184,000	35,794,000	33,294,000	26,945,000	25,317,000	29,186,000	27,642,000	26,205,000	25,907,000	26,838,000	27,635,000	27,539,000
Debt-to-capital ratio		0.47	0.45	0.47	0.37	0.38	0.39	0.40	0.43	0.45	0.39	0.42	0.47	0.50	0.47	0.49	0.45	0.47	0.46	0.45	0.45

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 been relatively stable over the past eight quarters, ranging between 0.40 and 0.49. This ratio indicates that, on average, the company finances approximately 40% to 49% of its capital through debt as opposed to equity. A higher ratio suggests higher leverage and financial risk, while a lower ratio indicates a more conservative capital structure. The slight fluctuations in the debt-to-capital ratio may signify varying levels of debt management and capital structure adjustments by the company during the analyzed period. Overall, the relatively consistent range of the debt-to-capital ratio implies that Merck & Co Inc maintains a moderate level of debt relative to its total capital base.