Merck & Company Inc (MRK)

Debt-to-equity 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-equity ratio		0.90	0.82	0.88	0.60	0.63	0.64	0.66	0.75	0.80	0.64	0.72	0.89	1.00	0.90	0.95	0.83	0.88	0.84	0.82	0.83

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $33,683,000K ÷ $37,581,000K
= 0.90

Based on the data provided, we can see that Merck & Co Inc's debt-to-equity ratio has fluctuated over the past eight quarters. The trend shows an increase from Q1 2022 to Q3 2023, reaching a peak of 0.95, but slightly decreased in Q4 2023 to 0.93. This indicates that the company has been relying more on debt financing relative to its equity capital during this period.

A debt-to-equity ratio of less than 1 typically suggests that the company has more equity relative to debt, which can be viewed as a positive indicator of financial stability. However, it is important to note that a higher debt-to-equity ratio may indicate greater financial risk, especially if the company is unable to effectively manage its debt obligations.

Overall, further analysis and comparison with industry averages and trends would be necessary to fully assess the implications of Merck & Co Inc’s debt-to-equity ratio on its financial health and risk profile.