Merck Financials

MRK Stock  USD 102.55  0.40  0.39%   
Net Income Per Employee is expected to rise to about 227 K this year, although the value of Revenue Per Employee will most likely fall to about 712.6 K.
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The financial analysis of Merck is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Merck includes many different criteria found on its balance sheet. For example, investors should never minimize Merck's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Merck's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Merck.

Cash and Equivalents

10.67 Billion

With this module, you can analyze Merck financials for your investing period. You should be able to track the changes in Merck individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
Understanding current and past Merck Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Merck's financial statements are interrelated, with each one affecting the others. For example, an increase in Merck's assets may result in an increase in income on the income statement.
Evaluating Merck's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Merck's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Merck's relative financial performance

Chance Of Distress

Less than 1

Merck Company has less than 1 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Merck stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Merck's odds of distress score SHOULD NOT be confused with the real chance of Merck Company filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Merck is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Merck's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
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The data published in Merck's official financial statements usually reflect Merck's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Merck Company. For example, before you start analyzing numbers published by Merck accountants, it's critical to develop an understanding of what Merck's liquidity, profitability, and earnings quality are in the context of the Pharmaceuticals space in which it operates.
Please note, the presentation of Merck's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Merck's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Merck's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Merck Company. Please utilize our Beneish M Score to check the likelihood of Merck's management manipulating its earnings.

Merck Company Summary

Merck competes with International Business, B of A, American Express, Exxon, and 3M. Merck Co., Inc. operates as a healthcare company worldwide. Merck Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey. Merck operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 67000 people.
Foreign Associates
Health Care, Pharmaceuticals, Biotechnology & Life Sciences
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0000310158
RegionNorth America
LocationNew Jersey; U.S.A
Business Address2000 Galloping Hill
IndustryHealth Care
BenchmarkNYSE Composite
Phone908 740 4000
CurrencyUSD - US Dollar
You should never invest in Merck without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Merck Stock, because this is throwing your money away. Analyzing the key information contained in Merck's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Merck Key Financial Ratios

Generally speaking, Merck's financial ratios allow both analysts and investors to convert raw data from Merck's financial statements into concise, actionable information that can be used to evaluate the performance of Merck over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Merck Company reports annually and quarterly.

Merck Key Balance Sheet Accounts

201820192020202120222023 (projected)
Inventories5.44 B5.98 B6.31 B5.95 B5.91 B6.44 B
Receivables7.07 B6.78 B7.85 B9.23 B9.45 B8.14 B
Accounts Payable3.32 B3.74 B4.59 B4.61 B4.26 B3.55 B
Total Assets82.64 B84.4 B91.59 B105.69 B109.16 B98.35 B
Current Assets25.88 B27.48 B27.76 B30.27 B35.72 B31.64 B
Assets Non Current56.76 B56.91 B63.82 B75.43 B73.44 B66.71 B
Cash and Equivalents7.96 B9.68 B8.05 B8.1 B12.69 B10.67 B
Total Debt25.11 B26.35 B31.79 B33.1 B30.69 B31.4 B
Debt Current5.31 B3.61 B6.43 B2.41 B1.95 B2.46 B
Debt Non Current19.81 B22.74 B25.36 B30.69 B28.75 B28.41 B
Inventory5.44 B5.98 B5.55 B5.95 B5.91 B5.48 B
Investments7.13 B2.24 B785 M370 M1.51 B1.55 B
Investments Current2.41 B899 M774 M498 M448.2 M459.99 M
Total Liabilities55.76 B58.4 B66.18 B67.44 B63.1 B66.34 B
Current Liabilities22.21 B22.22 B27.33 B23.87 B24.24 B24.84 B
Tax Liabilities3.67 B2.21 B2.6 B4.67 B3.78 B4.09 B

Merck Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Merck's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201820192020202120222023 (projected)
Direct Expenses13.51 B14.11 B15.48 B13.63 B17.41 B18.12 B
Consolidated Income6.19 B9.84 B7.07 B13.05 B14.52 B12.08 B
Cost of Revenue13.51 B12.02 B13.62 B13.63 B17.41 B15.37 B
Gross Profit28.79 B27.11 B27.9 B35.08 B41.87 B38.97 B
Interest Expense772 M893 M831 M806 M962 M960.53 M
Net Income6.22 B9.84 B7.07 B13.05 B14.52 B12.06 B
Operating Expenses20.49 B19.8 B22.93 B22.54 B23.93 B24.8 B
Operating Income8.3 B7.3 B4.97 B12.54 B17.95 B19.36 B
Revenues42.29 B39.12 B41.52 B48.7 B59.28 B56.67 B
Income Tax Expense2.51 B1.56 B1.34 B1.52 B1.92 B1.91 B

Merck Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Merck Company. It measures of how well Merck is doing because it can show the actual money that comes into and out of the company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Merck brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Merck had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Merck has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201820192020202120222023 (projected)
Capital Expenditure(2.62 B)(3.37 B)(4.43 B)(4.45 B)(4.39 B)(4.5 B)
Depreciation Amortization and Accretion4.52 B3.31 B3.49 B3.21 B3.91 B4.19 B
Net Cash Flow or Change in Cash and Cash Equivalents1.87 B1.97 B(1.77 B)14 M4.61 B4.97 B
Net Cash Flow Business Acquisitions and Disposals(431 M)(4.95 B)(7.61 B)(12.91 B)(121 M)(130.55 M)
Issuance Purchase of Equity Shares(8.5 B)(4.42 B)(1.19 B)(638 M)384 M414.32 M
Issuance Repayment of Debt Securities837 M1.25 B5.01 B1.63 B(2.25 B)(2.31 B)
Payment of Dividends and Other Cash Distributions(5.17 B)(5.7 B)(6.21 B)(6.61 B)(7.01 B)(7.57 B)
Net Cash Flow from Financing(13.16 B)(8.86 B)(2.83 B)2.59 B(9.12 B)(9.84 B)
Net Cash Flow from Investing4.31 B(2.63 B)(9.44 B)(16.55 B)(4.96 B)(5.35 B)
Net Cash Flow Investment Acquisitions and Disposals7.26 B5.42 B2.72 B1.02 B(483 M)(495.71 M)
Net Cash Flow from Operations10.92 B13.44 B10.25 B14.11 B19.09 B16.73 B
Effect of Exchange Rate Changes on Cash(205 M)17 M253 M(133 M)(410 M)(442.37 M)
Share Based Compensation348 M388 M441 M479 M541 M495.11 M

Merck Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Merck's current stock value. Our valuation model uses many indicators to compare Merck value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Merck competition to find correlations between indicators driving Merck's intrinsic value. More Info.
Merck Company is considered to be number one stock in ebitda category among related companies. It is considered to be number one stock in working capital category among related companies reporting about  0.62  of Working Capital per EBITDA. The ratio of EBITDA to Working Capital for Merck Company is roughly  1.62 . Merck Earnings Before Interest Taxes and Depreciation Amortization EBITDA are quite stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 20.25 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Merck by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merck's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merck's earnings, one of the primary drivers of an investment's value.

Merck Company Systematic Risk

Merck's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Merck volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was thirty-six with a total number of output elements of twenty-five. The Beta measures systematic risk based on how returns on Merck Company correlated with the market. If Beta is less than 0 Merck generally moves in the opposite direction as compared to the market. If Merck Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Merck Company is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Merck is generally in the same direction as the market. If Beta > 1 Merck moves generally in the same direction as, but more than the movement of the benchmark.

About Merck Financials

What exactly are Merck Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Merck's income statement, its balance sheet, and the statement of cash flows. Potential Merck investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Merck investors may use each financial statement separately, they are all related. The changes in Merck's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Merck's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Merck Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Merck is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Merck has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Merck's financials are consistent with your investment objective using the following steps:
  • Review Merck's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Merck's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Merck's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Merck's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Merck Thematic Clasifications

Merck Company is part of several thematic ideas from Robots And Drones to Compulsion. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Robots And Drones Idea
Robots And DronesView
Compulsion Idea
Giant Impact Idea
Giant ImpactView

Merck October 3, 2023 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Merck help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Merck Company. We use our internally-developed statistical techniques to arrive at the intrinsic value of Merck Company based on widely used predictive technical indicators. In general, we focus on analyzing Merck Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Merck's daily price indicators and compare them against related drivers.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running Merck's price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Dividend Share
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.