Merck & Company Inc (MRK)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	34,462,000	34,982,000	34,717,000	31,142,000	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
Total stockholders’ equity	US$ in thousands	46,313,000	44,502,000	43,582,000	40,364,000	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
Debt-to-equity ratio		0.74	0.79	0.80	0.77	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

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 fluctuated over the past several quarters. From March 31, 2020, to December 31, 2024, the ratio ranged from a low of 0.60 to a high of 1.00. The trend indicates that the company has been actively managing its capital structure, with the ratio generally decreasing over time. A decreasing trend in the debt-to-equity ratio suggests that Merck has been reducing its reliance on debt financing relative to equity, which could indicate improved financial health and reduced financial risk. However, it is important to note that a debt-to-equity ratio of less than 1 indicates that the company has more equity than debt in its capital structure, which might be viewed positively by investors and creditors. Overall, the trend in the debt-to-equity ratio reflects the company's strategic decisions regarding its capitalization and financial leverage.