Merck & Company Inc (MRK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 117,106,000 | 117,532,000 | 112,630,000 | 105,849,000 | 106,675,000 | 106,727,000 | 104,469,000 | 107,796,000 | 109,160,000 | 107,081,000 | 107,095,000 | 106,668,000 | 105,694,000 | 93,494,000 | 90,688,000 | 90,847,000 | 91,588,000 | 89,800,000 | 90,615,000 | 84,913,000 |
| 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 |
| Financial leverage ratio | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | 2.77 | 2.61 | 2.72 | 3.37 | 3.62 | 3.08 | 3.28 | 3.24 |
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 fluctuations over the observed period from March 31, 2020, to December 31, 2024.
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Generally, a higher leverage ratio indicates higher financial risk, as the company has more debt compared to equity.
Merck & Company Inc's financial leverage ratio ranged from 3.24 on March 31, 2020, to a low of 2.30 on March 31, 2023. The ratio peaked at 3.62 on December 31, 2020. The trend in the financial leverage ratio shows a decreasing pattern from the end of 2020 onwards, indicating a reduction in the proportion of debt in the company's capital structure compared to equity.
Overall, the declining trend in Merck & Company Inc's financial leverage ratio suggests that the company has been reducing its reliance on debt financing over the observed period, which may indicate improved financial stability and reduced financial risk.
Peer comparison
Dec 31, 2024