Analysis of Geographic Areas
Merck & Co. Inc. operates in 7 regions: United States; Europe, Middle East and Africa; China; Latin America; Japan; Asia Pacific (other than China and Japan); and Other.
Area Asset Turnover
Merck & Co. Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 2.19 | 2.05 | 2.11 | 1.91 | 2.00 |
| Europe, Middle East and Africa | 1.86 | 1.75 | 2.07 | 2.19 | 2.24 |
| China | 27.20 | 35.24 | 25.08 | 19.90 | 16.70 |
| Latin America | 26.01 | 13.90 | 11.48 | 11.09 | 9.02 |
| Japan | 22.94 | 23.79 | 26.88 | 17.14 | 20.34 |
| Asia Pacific (other than China and Japan) | 3.11 | 3.16 | 3.74 | 2.81 | 3.76 |
| Other | 54.45 | 526.00 | 513.60 | 305.25 | 245.80 |
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).
- United States
- The asset turnover ratio in the United States exhibits moderate fluctuations over the observed periods. It started at 2.00 in 2020, decreased slightly to 1.91 in 2021, then increased to 2.11 in 2022, followed by a marginal decline to 2.05 in 2023, and finally rose again to 2.19 in 2024. Overall, this indicates a relatively stable asset turnover with a slight upward trend by the end of the period.
- Europe, Middle East and Africa
- This region shows a consistently declining trend in asset turnover. Starting from 2.24 in 2020, the ratio slightly decreased to 2.19 in 2021, then dropped further to 2.07 in 2022. A more pronounced decline occurred in 2023 to 1.75, followed by a modest recovery to 1.86 in 2024. Despite the late increase, the overall pattern reflects weakening asset efficiency in this area.
- China
- China demonstrates a strong upward trajectory in asset turnover until 2023, increasing from 16.7 in 2020 to a peak of 35.24 in 2023. This is followed by a decline to 27.2 in 2024. Although there is a drop in the final year, the ratio remains significantly higher than in the initial periods, indicating substantial improvements in asset utilization over the four years before the decrease.
- Latin America
- In Latin America, the asset turnover ratio consistently increased throughout the entire period. It rose from 9.02 in 2020 to 11.09 in 2021, then to 11.48 in 2022, followed by 13.9 in 2023, and finally showed a sharp increase to 26.01 in 2024. This indicates continuous and accelerating growth in asset efficiency, especially notable in the last year.
- Japan
- Japan's asset turnover ratio fluctuates without a clear directional trend. It decreased from 20.34 in 2020 to 17.14 in 2021, then sharply rose to 26.88 in 2022, dropped again to 23.79 in 2023, and slightly declined further to 22.94 in 2024. These variations suggest volatility in asset utilization, with the ratio remaining relatively high across the period.
- Asia Pacific (other than China and Japan)
- This region shows small fluctuations with a slight declining tendency. The ratio decreased from 3.76 in 2020 to 2.81 in 2021, rebounded to 3.74 in 2022, then dropped to 3.16 in 2023 and decreased marginally to 3.11 in 2024. The trend implies modest instability and a slight deterioration in asset turnover efficiency.
- Other
- The category labeled "Other" exhibits extreme volatility. The ratio increases dramatically from 245.8 in 2020 to 305.25 in 2021, then escalates sharply to 513.6 in 2022, followed by a small increase to 526 in 2023, but then plummets to 54.45 in 2024. While the first four years show extraordinary growth in asset turnover, the significant decline in the last year indicates a major shift or anomaly in asset utilization within this category.
Area Asset Turnover: United States
Merck & Co. Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 32,277) | 28,480) | 27,206) | 22,425) | 21,027) |
| Property, plant and equipment, net | 14,724) | 13,915) | 12,891) | 11,759) | 10,526) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.19 | 2.05 | 2.11 | 1.91 | 2.00 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 32,277 ÷ 14,724 = 2.19
- Sales
- Sales figures have shown a consistent upward trend over the five-year period. Starting at US$21,027 million in 2020, sales increased to US$22,425 million in 2021, followed by a more pronounced rise to US$27,206 million in 2022. This growth trajectory continued with sales reaching US$28,480 million in 2023 and further climbing to US$32,277 million in 2024. Overall, sales expanded significantly, reflecting a steady increase in demand or market penetration within the United States geographic area.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment demonstrated a consistent increment over the analyzed period. Beginning at US$10,526 million in 2020, the value rose to US$11,759 million in 2021 and continued growing annually, reaching US$12,891 million in 2022, US$13,915 million in 2023, and US$14,724 million in 2024. This growth suggests ongoing capital investments or asset acquisitions, indicating possible expansion or modernization efforts within the specified geographic area.
- Area Asset Turnover
- The area asset turnover ratio exhibited some fluctuations but maintained an overall positive trend. The ratio began at 2.00 in 2020, dipped slightly to 1.91 in 2021, then increased to 2.11 in 2022. It experienced a minor decrease to 2.05 in 2023 but rose again to 2.19 in 2024. This pattern indicates relatively stable efficiency in utilizing property, plant, and equipment to generate sales, with improvements in turnover efficiency towards the end of the period.
- Summary Insight
- The data suggests robust growth in sales, supported by continuous investment in property, plant, and equipment. The moderate upward trajectory in asset turnover indicates effective management of assets to support revenue generation. The combination of these trends reflects a strong operational performance within the United States market, characterized by expansion and efficient use of assets over the five-year span.
Area Asset Turnover: Europe, Middle East and Africa
Merck & Co. Inc.; Europe, Middle East and Africa; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 14,041) | 13,254) | 14,493) | 13,341) | 13,600) |
| Property, plant and equipment, net | 7,548) | 7,562) | 6,993) | 6,081) | 6,059) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.86 | 1.75 | 2.07 | 2.19 | 2.24 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 14,041 ÷ 7,548 = 1.86
- Sales
- The sales figures for the Europe, Middle East, and Africa region display variability over the five-year period. Starting at 13,600 million USD in 2020, sales experienced a slight decline to 13,341 million USD in 2021. This was followed by an increase to 14,493 million USD in 2022. Subsequently, sales decreased again to 13,254 million USD in 2023 but rebounded to 14,041 million USD in 2024. Overall, sales demonstrate cyclical fluctuations without a consistent upward or downward trend.
- Property, plant and equipment, net
- The net value of property, plant, and equipment showed a steady upward trend over the analyzed period. Beginning at 6,059 million USD in 2020, the figure slightly increased to 6,081 million USD in 2021, followed by larger increments to 6,993 million USD in 2022 and 7,562 million USD in 2023. In 2024, the value slightly declined to 7,548 million USD. This pattern suggests ongoing investments in fixed assets with a minor reduction in the final year.
- Area asset turnover
- The area asset turnover ratio, indicating sales generated per unit of property, plant, and equipment, showed a gradual decline from 2.24 in 2020 to 2.19 in 2021, followed by further decreases to 2.07 in 2022 and a notable drop to 1.75 in 2023. In 2024, the ratio improved slightly to 1.86 but remained well below the initial values. This trend suggests decreasing efficiency in utilizing assets to generate sales, despite the growth in asset base during most of the period.
Area Asset Turnover: China
Merck & Co. Inc.; China; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 5,494) | 6,802) | 5,191) | 4,378) | 3,624) |
| Property, plant and equipment, net | 202) | 193) | 207) | 220) | 217) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 27.20 | 35.24 | 25.08 | 19.90 | 16.70 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 5,494 ÷ 202 = 27.20
The data for the China geographic area reveals several notable trends over the five-year period from 2020 to 2024. The analysis focuses on sales figures, net property, plant and equipment (PPE), and the area asset turnover ratio.
- Sales
- Sales steadily increased from 3,624 million US dollars in 2020 to a peak of 6,802 million US dollars in 2023, representing a strong upward trend over four years. However, in 2024, sales declined to 5,494 million US dollars, indicating a significant drop from the previous year's peak but still maintaining a level higher than sales in 2020 through 2022.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed minor fluctuations but generally declined slightly over the period. Starting at 217 million US dollars in 2020, the net PPE remained relatively stable through 2021 at 220 million US dollars but decreased to 207 million in 2022 and further to 193 million in 2023, before a slight rebound to 202 million in 2024. This pattern suggests limited capital investment or possible asset disposals.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures sales generated per unit of asset, increased significantly from 16.7 in 2020 to a high of 35.24 in 2023. This indicates improving efficiency in utilizing assets to generate sales during this period. However, the ratio decreased to 27.2 in 2024, paralleling the decline in sales for that year. Despite this drop, the turnover ratio in 2024 remained well above the levels seen in 2020 and 2021.
Overall, the China segment experienced strong sales growth and increased operational efficiency through 2023, supported by a relatively stable asset base. The decline in sales and asset turnover in 2024 warrants attention, as it may indicate emerging challenges or market adjustments. The slight decrease in net PPE over the years suggests conservative investment in fixed assets or optimization of existing asset utilization.
Area Asset Turnover: Latin America
Merck & Co. Inc.; Latin America; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 3,459) | 3,086) | 2,582) | 2,206) | 2,274) |
| Property, plant and equipment, net | 133) | 222) | 225) | 199) | 252) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 26.01 | 13.90 | 11.48 | 11.09 | 9.02 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 3,459 ÷ 133 = 26.01
- Sales
- Sales in the Latin America geographic area demonstrated an overall upward trend from 2020 to 2024. Beginning at 2,274 million US dollars in 2020, sales slightly decreased to 2,206 million US dollars in 2021. However, a recovery was evident in 2022 with sales increasing to 2,582 million US dollars, followed by sustained growth reaching 3,086 million US dollars in 2023 and further improving to 3,459 million US dollars in 2024. This indicates a strong sales growth trajectory over the five-year period, particularly notable after 2021.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment in the region exhibited a declining trend over the reported years. The value started at 252 million US dollars in 2020, followed by a reduction to 199 million US dollars in 2021. There was a partial recovery in 2022 with an increase to 225 million US dollars, but values slightly declined again to 222 million US dollars in 2023 and then sharply decreased to 133 million US dollars in 2024. This indicates a consistent contraction in the asset base, particularly pronounced in 2024.
- Area Asset Turnover
- The area asset turnover ratio showed a significant and continuous increase over the five-year span. Starting at 9.02 in 2020, the ratio rose to 11.09 in 2021 and continued to increase moderately to 11.48 in 2022. The increase accelerated in 2023 with a ratio of 13.9 and doubled dramatically in 2024 to 26.01. This ratio, which reflects the efficiency in generating sales from the asset base, suggests markedly improved productivity or asset utilization in the Latin America region, especially in the most recent year.
- Summary
- The data reveals a scenario where sales are growing steadily while the net property, plant, and equipment base is declining or contracting. This dynamic leads to a substantial increase in area asset turnover, highlighting a more efficient use of assets in driving sales. The sharp decline in assets coupled with rising sales indicates potential shifts such as asset divestitures, increased outsourcing, or improved operational efficiency. Overall, the region shows positive sales momentum supported by enhanced asset turnover performance, despite a shrinking asset base.
Area Asset Turnover: Japan
Merck & Co. Inc.; Japan; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 3,280) | 3,164) | 3,629) | 2,726) | 3,376) |
| Property, plant and equipment, net | 143) | 133) | 135) | 159) | 166) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 22.94 | 23.79 | 26.88 | 17.14 | 20.34 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 3,280 ÷ 143 = 22.94
- Sales
- Sales in the Japan geographic area exhibit fluctuations over the five-year period. Starting at 3,376 million US dollars in 2020, sales decreased notably to 2,726 million US dollars in 2021. This downturn was followed by a recovery in 2022, with sales increasing to 3,629 million US dollars. However, sales fell again in 2023 to 3,164 million US dollars before experiencing a modest increase to 3,280 million US dollars in 2024. Overall, sales display volatility with no clear upward or downward long-term trend.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows a declining trend from 2020 through 2023. The figure decreases from 166 million US dollars in 2020 to a low of 133 million US dollars in 2023. In 2024, a slight rebound is observed, with the value rising to 143 million US dollars. This pattern suggests a possible reduction in asset base or depreciation over the period, with some reinvestment or asset acquisition occurring in the last year reported.
- Area Asset Turnover
- The area asset turnover ratio reveals considerable variability throughout the observed period. The ratio starts at 20.34 in 2020, declines to 17.14 in 2021, then surges significantly to 26.88 in 2022. It declines again in the subsequent years to 23.79 in 2023 and 22.94 in 2024. These fluctuations indicate varying efficiency in using property, plant, and equipment to generate sales, with peak efficiency observed in 2022, followed by a gradual reduction.
- Summary
- Overall, the data for the Japan geographic area demonstrate inconsistencies in sales and asset utilization over the five-year span. Sales have oscillated with no sustained growth or decline pattern. The asset base has generally diminished with a partial recovery in the final year. The area asset turnover ratio's wide swings suggest changing operational efficiencies, potentially influenced by the fluctuations in both sales and asset levels. This interplay between sales performance and asset management highlights a dynamic business environment with periods of both contraction and recovery.
Area Asset Turnover: Asia Pacific (other than China and Japan)
Merck & Co. Inc.; Asia Pacific (other than China and Japan); area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 3,058) | 3,225) | 3,614) | 2,407) | 2,864) |
| Property, plant and equipment, net | 982) | 1,022) | 966) | 857) | 761) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.11 | 3.16 | 3.74 | 2.81 | 3.76 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 3,058 ÷ 982 = 3.11
- Sales
- Sales in the Asia Pacific (other than China and Japan) region experienced fluctuations over the five-year period. The sales value decreased from 2,864 million USD in 2020 to 2,407 million USD in 2021. A notable recovery was seen in 2022 with sales rising sharply to 3,614 million USD. However, this was followed by a decline in subsequent years, registering 3,225 million USD in 2023 and further decreasing to 3,058 million USD in 2024. The trend denotes volatility with a peak in 2022, after which sales tapered off but remained above the levels observed in 2020 and 2021.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed a consistent upward trend from 2020 to 2023. Starting at 761 million USD in 2020, it increased steadily each year to reach 1,022 million USD in 2023. In 2024, there was a slight decline to 982 million USD, indicating a minor reduction in capital asset base after several years of growth. This pattern suggests ongoing investment in physical assets up to 2023 with a modest pullback in the final year.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of asset use to generate sales, exhibited variability. It dropped notably from 3.76 in 2020 to 2.81 in 2021, aligning with the decrease in sales noted in the same period. The ratio rebounded to 3.74 in 2022, coinciding with the peak sales year, indicating improved asset utilization. However, it declined again in the subsequent years to 3.16 in 2023 and 3.11 in 2024, reflecting a moderate reduction in asset efficiency relative to sales.
Area Asset Turnover: Other
Merck & Co. Inc.; Other; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales | 2,559) | 2,104) | 2,568) | 1,221) | 1,229) |
| Property, plant and equipment, net | 47) | 4) | 5) | 4) | 5) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 54.45 | 526.00 | 513.60 | 305.25 | 245.80 |
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).
1 2024 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment, net
= 2,559 ÷ 47 = 54.45
- Sales
- Sales figures demonstrate variability over the observed period. Starting at 1,229 million US dollars in 2020, sales slightly decreased to 1,221 million in 2021. A significant increase occurred in 2022, with sales more than doubling to 2,568 million. This upward trend declined somewhat in 2023, with sales falling to 2,104 million, but rebounded again in 2024 to 2,559 million, approaching the 2022 peak level.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remained relatively stable and low between 2020 and 2023, fluctuating between 4 and 5 million US dollars. However, a substantial increase is observed in 2024, where the value jumped to 47 million US dollars, indicating a likely significant investment or revaluation occurring in that year.
- Area Asset Turnover
- Area asset turnover exhibited notable fluctuations across the years. It started at a high ratio of 245.8 in 2020, increased to 305.25 in 2021, and then surged dramatically to 513.6 in 2022. The high level was maintained in 2023 with a slight increase to 526. Nevertheless, there was a pronounced drop in 2024 to 54.45, correlating with the substantial rise in property, plant, and equipment, suggesting a lag in asset utilization efficiency following the asset base expansion.
Sales
Merck & Co. Inc., sales by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 32,277) | 28,480) | 27,206) | 22,425) | 21,027) |
| Europe, Middle East and Africa | 14,041) | 13,254) | 14,493) | 13,341) | 13,600) |
| China | 5,494) | 6,802) | 5,191) | 4,378) | 3,624) |
| Latin America | 3,459) | 3,086) | 2,582) | 2,206) | 2,274) |
| Japan | 3,280) | 3,164) | 3,629) | 2,726) | 3,376) |
| Asia Pacific (other than China and Japan) | 3,058) | 3,225) | 3,614) | 2,407) | 2,864) |
| Other | 2,559) | 2,104) | 2,568) | 1,221) | 1,229) |
| Total | 64,168) | 60,115) | 59,283) | 48,704) | 47,994) |
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).
- United States Sales
- The sales in the United States have shown a consistent upward trend over the five-year period. Starting at $21,027 million in 2020, the figures increased each year, reaching $32,277 million in 2024. This represents a substantial growth, especially notable between 2021 and 2022, and again from 2023 to 2024.
- Europe, Middle East, and Africa Sales
- Sales in this region have experienced fluctuations without a clear upward or downward trajectory. Beginning at $13,600 million in 2020, sales slightly decreased in 2021, rose in 2022, then declined again in 2023 before a modest recovery in 2024. Overall, sales remained in a narrow range around $13,000 to $14,500 million.
- China Sales
- Sales in China have generally increased over the period, rising from $3,624 million in 2020 to a peak of $6,802 million in 2023. However, 2024 experienced a decline to $5,494 million. Despite this drop, 2024 sales remained significantly higher than in 2020, indicating strong growth over the medium term with some recent volatility.
- Latin America Sales
- Latin America has demonstrated steady growth throughout the period. Starting at $2,274 million in 2020, sales saw gradual increases year over year, reaching $3,459 million in 2024. This growth appears consistent and stable without any declines.
- Japan Sales
- Sales in Japan showed variability. From $3,376 million in 2020, there was a decline in 2021 to $2,726 million, followed by an increase to $3,629 million in 2022. The subsequent years showed a slight decrease and then a moderate increase, ending at $3,280 million in 2024. The overall trend remains relatively flat with some short-term fluctuations.
- Asia Pacific (excluding China and Japan) Sales
- This segment showed some volatility, with an initial decrease from $2,864 million in 2020 to $2,407 million in 2021. It then increased to $3,614 million in 2022 before declining again in the following years, ending at $3,058 million in 2024. The data suggests moderate variability with no clear long-term growth trend.
- Other Regions Sales
- The 'Other' category shows significant variability. Sales were steady around $1,200 million in 2020 and 2021, before more than doubling to $2,568 million in 2022. A decline followed in 2023, with a partial recovery to $2,559 million in 2024. This pattern indicates a period of rapid increase followed by fluctuations.
- Total Sales
- Total sales exhibited a clear upward trend. Starting at $47,994 million in 2020, sales rose modestly in 2021, then experienced substantial growth in 2022. Growth continued in 2023 and 2024, although at a slower pace compared to the jump in 2022. The overall increase from 2020 to 2024 indicates expanding revenues across the combined geographic areas.
Property, plant and equipment, net
Merck & Co. Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 14,724) | 13,915) | 12,891) | 11,759) | 10,526) |
| Europe, Middle East and Africa | 7,548) | 7,562) | 6,993) | 6,081) | 6,059) |
| China | 202) | 193) | 207) | 220) | 217) |
| Latin America | 133) | 222) | 225) | 199) | 252) |
| Japan | 143) | 133) | 135) | 159) | 166) |
| Asia Pacific (other than China and Japan) | 982) | 1,022) | 966) | 857) | 761) |
| Other | 47) | 4) | 5) | 4) | 5) |
| Total | 23,779) | 23,051) | 21,422) | 19,279) | 17,986) |
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).
The analysis of property, plant, and equipment (net) across different geographic regions reveals distinct trends over the five-year period.
- United States
- The United States shows a consistent increase in property, plant, and equipment, rising steadily from $10,526 million in 2020 to $14,724 million in 2024. This reflects a strong growth trajectory, with the asset base expanding by approximately 40% over the period, indicating significant ongoing investment in facilities and infrastructure within this market.
- Europe, Middle East and Africa (EMEA)
- The EMEA region also demonstrates growth, increasing from $6,059 million in 2020 to a peak of $7,562 million in 2023, before slightly declining to $7,548 million in 2024. Overall, there is a notable upward trend, with increases concentrated primarily between 2021 and 2023, suggesting targeted capital expenditure or expansion activity that stabilizes in the most recent year.
- China
- China's asset base remains relatively flat throughout the period, with a modest decline from $217 million in 2020 to $202 million in 2024. The slight decrease and fluctuations imply limited new investment or possible divestment strategies in this region during the analyzed timeframe.
- Latin America
- Latin America exhibits a fluctuating trend with an overall decline. Starting at $252 million in 2020, the value decreased to $133 million by 2024, with minor variations in the intermediate years. This significant reduction suggests either asset disposals or reduced capital expenditures, potentially indicating a strategic shift or deprioritization of this market.
- Japan
- Japan follows a similar pattern to Latin America but with less dramatic changes. The value decreases from $166 million in 2020 to a low of $133 million in 2023, before rising slightly to $143 million in 2024. This pattern could indicate moderate divestment followed by some reinvestment or stabilization in the region.
- Asia Pacific (excluding China and Japan)
- The Asia Pacific region outside China and Japan shows a clear growth trend, increasing from $761 million in 2020 to $982 million in 2024. The steady upward movement suggests ongoing investment and expansion in these markets, supporting regional development strategies.
- Other
- The "Other" category remains minimal and relatively stable from 2020 through 2023, with values ranging between $4 million and $5 million, but shows a significant increase to $47 million in 2024. This jump may reflect new or reclassified assets or emerging investments in additional or previously minor markets.
- Total
- The total net property, plant, and equipment increased consistently from $17,986 million in 2020 to $23,779 million in 2024. This overall growth is driven primarily by substantial increases in the United States and EMEA regions, supported by steady gains in Asia Pacific (excluding China and Japan). However, declines in Latin America and China moderate the total growth pace.