Merck & Company Inc (MRK)

Debt-to-equity 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-equity ratio		0.74	0.90	0.63	0.80	1.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $34,462,000K ÷ $46,313,000K
= 0.74

The debt-to-equity ratio of Merck & Company Inc has shown a decreasing trend over the past five years, starting at 1.00 in December 31, 2020, and gradually decreasing to 0.74 by December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in relation to equity financing over time. A lower debt-to-equity ratio generally suggests a lower financial risk and a stronger financial position for the company. However, the ratio slightly increased in 2023 to 0.90 before decreasing again in 2024. Overall, the decreasing trend in the debt-to-equity ratio could indicate that Merck & Company Inc is managing its capital structure efficiently and reducing its financial leverage.