Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

Merck & Co. Inc., liquidity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 1.36 1.25 1.47 1.27 1.02
Quick ratio 0.84 0.68 0.93 0.73 0.58
Cash ratio 0.48 0.28 0.54 0.34 0.30

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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Merck & Co. Inc. current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Merck & Co. Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Merck & Co. Inc. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Current Ratio

Merck & Co. Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 38,782 32,168 35,722 30,266 27,764
Current liabilities 28,420 25,694 24,239 23,872 27,327
Liquidity Ratio
Current ratio1 1.36 1.25 1.47 1.27 1.02
Benchmarks
Current Ratio, Competitors2
AbbVie Inc. 0.66 0.87 0.96 0.79 0.84
Amgen Inc. 1.26 1.65 1.41 1.59 1.81
Bristol-Myers Squibb Co. 1.25 1.43 1.25 1.52 1.58
Danaher Corp. 1.40 1.68 1.89 1.43 1.86
Eli Lilly & Co. 1.15 0.94 1.05 1.23 1.40
Gilead Sciences Inc. 1.60 1.43 1.29 1.27 1.40
Johnson & Johnson 1.11 1.16 0.99 1.35 1.21
Pfizer Inc. 1.17 0.91 1.22 1.40 1.35
Regeneron Pharmaceuticals Inc. 4.73 5.69 5.06 3.56 3.63
Thermo Fisher Scientific Inc. 1.66 1.75 1.48 1.50 2.13
Vertex Pharmaceuticals Inc. 2.69 3.99 4.83 4.46 4.33
Current Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.24 1.27 1.30 1.36 1.37
Current Ratio, Industry
Health Care 1.11 1.13 1.15 1.21 1.20

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
Current ratio = Current assets ÷ Current liabilities
= 38,782 ÷ 28,420 = 1.36

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Merck & Co. Inc. current ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Quick Ratio

Merck & Co. Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,242 6,841 12,694 8,096 8,062
Short-term investments 447 252 498
Accounts receivable, net of allowance for doubtful accounts 10,278 10,349 9,450 9,230 7,851
Total quick assets 23,967 17,442 22,642 17,326 15,913
 
Current liabilities 28,420 25,694 24,239 23,872 27,327
Liquidity Ratio
Quick ratio1 0.84 0.68 0.93 0.73 0.58
Benchmarks
Quick Ratio, Competitors2
AbbVie Inc. 0.43 0.63 0.69 0.56 0.60
Amgen Inc. 0.81 0.99 0.95 1.06 1.30
Bristol-Myers Squibb Co. 0.91 1.04 0.87 1.20 1.28
Danaher Corp. 0.83 1.18 1.30 0.89 1.36
Eli Lilly & Co. 0.59 0.52 0.63 0.80 0.85
Gilead Sciences Inc. 1.20 1.06 0.99 0.95 1.08
Johnson & Johnson 0.78 0.82 0.71 1.04 0.91
Pfizer Inc. 0.74 0.50 0.80 1.00 0.78
Regeneron Pharmaceuticals Inc. 3.86 4.82 4.16 2.98 2.86
Thermo Fisher Scientific Inc. 1.14 1.27 1.06 1.00 1.63
Vertex Pharmaceuticals Inc. 2.17 3.60 4.46 4.04 4.02
Quick Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.82 0.85 0.91 0.98 0.98
Quick Ratio, Industry
Health Care 0.80 0.82 0.86 0.89 0.89

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
Quick ratio = Total quick assets ÷ Current liabilities
= 23,967 ÷ 28,420 = 0.84

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Merck & Co. Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Cash Ratio

Merck & Co. Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cash and cash equivalents 13,242 6,841 12,694 8,096 8,062
Short-term investments 447 252 498
Total cash assets 13,689 7,093 13,192 8,096 8,062
 
Current liabilities 28,420 25,694 24,239 23,872 27,327
Liquidity Ratio
Cash ratio1 0.48 0.28 0.54 0.34 0.30
Benchmarks
Cash Ratio, Competitors2
AbbVie Inc. 0.14 0.34 0.31 0.28 0.30
Amgen Inc. 0.52 0.60 0.59 0.66 0.91
Bristol-Myers Squibb Co. 0.46 0.55 0.42 0.78 0.83
Danaher Corp. 0.31 0.71 0.71 0.32 0.82
Eli Lilly & Co. 0.12 0.11 0.13 0.26 0.29
Gilead Sciences Inc. 0.83 0.64 0.57 0.56 0.65
Johnson & Johnson 0.49 0.50 0.42 0.70 0.59
Pfizer Inc. 0.48 0.27 0.54 0.73 0.47
Regeneron Pharmaceuticals Inc. 2.28 3.17 2.46 1.45 1.33
Thermo Fisher Scientific Inc. 0.42 0.58 0.50 0.33 1.00
Vertex Pharmaceuticals Inc. 1.72 3.16 3.93 3.51 3.55
Cash Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.45 0.47 0.52 0.58 0.59
Cash Ratio, Industry
Health Care 0.38 0.42 0.47 0.50 0.51

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
Cash ratio = Total cash assets ÷ Current liabilities
= 13,689 ÷ 28,420 = 0.48

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Merck & Co. Inc. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.