Merck & Company Inc (MRK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 117,106,000 | 106,675,000 | 109,160,000 | 105,694,000 | 91,588,000 |
| Total stockholders’ equity | US$ in thousands | 46,313,000 | 37,581,000 | 45,991,000 | 38,184,000 | 25,317,000 |
| Financial leverage ratio | 2.53 | 2.84 | 2.37 | 2.77 | 3.62 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $117,106,000K ÷ $46,313,000K
= 2.53
The financial leverage ratio of Merck & Company Inc has shown a declining trend over the past five years. As of December 31, 2020, the ratio stood at 3.62, indicating higher reliance on debt to finance its operations. Subsequently, by the end of 2021, the ratio decreased to 2.77, reflecting a reduction in the company's debt relative to its equity. This decreasing trend continued in the following years, with the ratio reaching 2.37 by December 31, 2022, before slightly increasing to 2.84 by December 31, 2023. By the end of 2024, the financial leverage ratio further decreased to 2.53, suggesting a more conservative capital structure. Overall, the declining trend in the financial leverage ratio indicates that Merck & Company Inc has been gradually reducing its reliance on debt financing, which may positively impact its financial stability and risk management.
Peer comparison
Dec 31, 2024