Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Merck & Co. Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income from continuing operations	17,133)	377)	14,526)	12,358)	7,082)
Amortization	2,395)	2,044)	2,085)	1,636)	1,899)
Depreciation	2,104)	1,828)	1,824)	1,578)	1,726)
Intangible asset impairment charges	39)	792)	1,749)	302)	1,718)
(Income) loss from investments in equity securities, net	(14)	(340)	1,419)	(1,940)	—)
Charges for certain research and development asset acquisitions	3,456)	11,409)	—)	1,556)	2,660)
Deferred income taxes	(1,249)	(1,899)	(1,568)	187)	(668)
Share-based compensation	761)	645)	541)	479)	475)
Other	510)	355)	1,301)	805)	(49)
Accounts receivable	(244)	(1,148)	(644)	(2,033)	(1,002)
Inventories	(835)	(816)	(161)	(674)	(855)
Trade accounts payable	182)	(380)	(289)	405)	724)
Accrued and other current liabilities	(2,328)	1,783)	(50)	277)	(1,138)
Income taxes payable	1,023)	214)	380)	(540)	560)
Noncurrent liabilities	(49)	456)	(545)	484)	(453)
Other	(1,416)	(2,314)	(1,473)	(1,758)	(2,426)
Net changes in assets and liabilities	(3,667)	(2,205)	(2,782)	(3,839)	(4,590)
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities	4,335)	12,629)	4,569)	764)	3,171)
Net cash provided by operating activities	21,468)	13,006)	19,095)	13,122)	10,253)
Capital expenditures	(3,372)	(3,863)	(4,388)	(4,448)	(4,684)
Purchase of Seagen Inc. common stock	—)	—)	—)	—)	(1,000)
Purchases of securities and other investments	(519)	(955)	(1,204)	(1)	(95)
Proceeds from sale of Seagen Inc. common stock	—)	1,145)	—)	—)	—)
Proceeds from sales of securities and other investments	377)	1,658)	721)	1,026)	2,812)
Acquisition of Eyebiotech Limited, net of cash acquired	(1,344)	—)	—)	—)	—)
Acquisition of Elanco Animal Health Incorporated aqua business	(1,303)	—)	—)	—)	—)
Acquisition of Harpoon Therapeutics, Inc., net of cash acquired	(746)	—)	—)	—)	—)
Acquisition of MK-1045 from Curon Pharmaceutical	(700)	—)	—)	—)	—)
Acquisition of Prometheus Biosciences, Inc., net of cash acquired	—)	(10,705)	—)	—)	—)
Acquisition of Imago BioSciences Inc., net of cash acquired	—)	(1,327)	—)	—)	—)
Acquisition of Acceleron Pharma Inc., net of cash acquired	—)	—)	—)	(11,174)	—)
Acquisition of Pandion Therapeutics, Inc., net of cash acquired	—)	—)	—)	(1,554)	—)
Acquisition of VelosBio Inc., net of cash acquired	—)	—)	—)	—)	(2,696)
Acquisition of ArQule, Inc., net of cash acquired	—)	—)	—)	—)	(2,545)
Other	(127)	(36)	(89)	(270)	(1,235)
Net cash used in investing activities	(7,734)	(14,083)	(4,960)	(16,421)	(9,443)
Net change in short-term borrowings	—)	—)	—)	(3,986)	2,549)
Payments on debt	(1,290)	(1,755)	(2,251)	(2,319)	(1,957)
Proceeds from issuance of debt	3,599)	5,939)	—)	7,936)	4,419)
Distribution from Organon & Co.	—)	—)	—)	9,000)	—)
Purchases of treasury stock	(1,306)	(1,346)	—)	(840)	(1,281)
Dividends paid to stockholders	(7,840)	(7,445)	(7,012)	(6,610)	(6,215)
Proceeds from exercise of stock options	177)	125)	384)	202)	89)
Other	(372)	(328)	(240)	(286)	(436)
Net cash provided by (used in) financing activities	(7,032)	(4,810)	(9,119)	3,097)	(2,832)
Net cash provided by operating activities	—)	—)	—)	987)	—)
Net cash used in investing activities	—)	—)	—)	(134)	—)
Net cash used in financing activities	—)	—)	—)	(504)	—)
Net cash flows provided by discontinued operations	—)	—)	—)	349)	—)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(293)	23)	(410)	(133)	253)
Net increase (decrease) in cash, cash equivalents and restricted cash	6,409)	(5,864)	4,606)	14)	(1,769)
Cash, cash equivalents and restricted cash at beginning of year	6,909)	12,773)	8,167)	8,153)	9,934)
Cash, cash equivalents and restricted cash at end of year	13,318)	6,909)	12,773)	8,167)	8,165)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Merck & Co. Inc. net cash provided by operating activities decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Merck & Co. Inc. net cash used in investing activities decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Merck & Co. Inc. net cash provided by (used in) financing activities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Merck & Co. Inc. (NYSE:MRK)

Cash Flow Statement