Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Merck & Co. Inc., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity 0.80 0.93 0.67 0.87 1.26
Debt to equity (including operating lease liability) 0.83 0.97 0.70 0.91 1.32
Debt to capital 0.44 0.48 0.40 0.46 0.56
Debt to capital (including operating lease liability) 0.45 0.49 0.41 0.48 0.57
Debt to assets 0.32 0.33 0.28 0.31 0.35
Debt to assets (including operating lease liability) 0.33 0.34 0.29 0.33 0.37
Financial leverage 2.53 2.84 2.37 2.77 3.62
Coverage Ratios
Interest coverage 16.69 2.65 18.09 18.22 11.58
Fixed charge coverage 13.31 2.27 13.69 13.08 8.47

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Merck & Co. Inc. debt to equity ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Merck & Co. Inc. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Merck & Co. Inc. debt to capital ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Merck & Co. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Merck & Co. Inc. debt to assets ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Merck & Co. Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Merck & Co. Inc. financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Merck & Co. Inc. interest coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Merck & Co. Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Debt to Equity

Merck & Co. Inc., debt to equity 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
 
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Solvency Ratio
Debt to equity1 0.80 0.93 0.67 0.87 1.26
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 20.19 5.73 3.67 4.98 6.58
Amgen Inc. 10.23 10.37 10.64 4.97 3.51
Bristol-Myers Squibb Co. 3.04 1.35 1.27 1.24 1.34
Danaher Corp. 0.32 0.34 0.39 0.49 0.53
Eli Lilly & Co. 2.37 2.34 1.52 1.88 2.94
Gilead Sciences Inc. 1.38 1.09 1.19 1.27 1.73
Johnson & Johnson 0.51 0.43 0.52 0.46 0.56
Pfizer Inc. 0.73 0.81 0.37 0.50 0.63
Regeneron Pharmaceuticals Inc. 0.09 0.10 0.12 0.14 0.24
Thermo Fisher Scientific Inc. 0.63 0.75 0.78 0.85 0.63
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.06 0.07
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.04 0.97 0.80 0.93 1.12
Debt to Equity, Industry
Health Care 0.87 0.81 0.72 0.79 0.90

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
Debt to equity = Total debt ÷ Total Merck & Co., Inc. stockholders’ equity
= 37,111 ÷ 46,313 = 0.80

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Merck & Co. Inc. debt to equity ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Debt to Equity (including Operating Lease Liability)

Merck & Co. Inc., debt to equity (including operating lease liability) 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
Current operating lease liability (included in Accrued and other current liabilities) 282 285 281 304 300
Noncurrent operating lease liability (included in Other noncurrent liabilities) 877 928 1,013 1,225 1,362
Total debt (including operating lease liability) 38,270 36,268 31,985 34,631 33,453
 
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Solvency Ratio
Debt to equity (including operating lease liability)1 0.83 0.97 0.70 0.91 1.32
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 20.46 5.82 3.72 5.03 6.66
Amgen Inc. 10.36 10.50 10.83 5.07 3.55
Bristol-Myers Squibb Co. 3.13 1.41 1.31 1.27 1.37
Danaher Corp. 0.35 0.37 0.41 0.52 0.56
Eli Lilly & Co. 2.45 2.44 1.59 1.96 3.06
Gilead Sciences Inc. 1.41 1.12 1.22 1.30 1.76
Johnson & Johnson 0.53 0.44 0.53 0.47 0.57
Pfizer Inc. 0.76 0.84 0.41 0.54 0.65
Regeneron Pharmaceuticals Inc. 0.10 0.11 0.12 0.15 0.25
Thermo Fisher Scientific Inc. 0.66 0.78 0.82 0.89 0.65
Vertex Pharmaceuticals Inc. 0.11 0.05 0.06 0.10 0.11
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.07 1.00 0.83 0.96 1.15
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.92 0.86 0.78 0.84 0.96

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Merck & Co., Inc. stockholders’ equity
= 38,270 ÷ 46,313 = 0.83

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Merck & Co. Inc. debt to equity ratio (including operating lease liability) deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Debt to Capital

Merck & Co. Inc., debt to capital 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Total capital 83,424 72,636 76,682 71,286 57,108
Solvency Ratio
Debt to capital1 0.44 0.48 0.40 0.46 0.56
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.95 0.85 0.79 0.83 0.87
Amgen Inc. 0.91 0.91 0.91 0.83 0.78
Bristol-Myers Squibb Co. 0.75 0.57 0.56 0.55 0.57
Danaher Corp. 0.24 0.26 0.28 0.33 0.35
Eli Lilly & Co. 0.70 0.70 0.60 0.65 0.75
Gilead Sciences Inc. 0.58 0.52 0.54 0.56 0.63
Johnson & Johnson 0.34 0.30 0.34 0.31 0.36
Pfizer Inc. 0.42 0.45 0.27 0.33 0.39
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.13 0.20
Thermo Fisher Scientific Inc. 0.39 0.43 0.44 0.46 0.39
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.05 0.06
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.51 0.49 0.44 0.48 0.53
Debt to Capital, Industry
Health Care 0.46 0.45 0.42 0.44 0.47

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
Debt to capital = Total debt ÷ Total capital
= 37,111 ÷ 83,424 = 0.44

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Merck & Co. Inc. debt to capital ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Debt to Capital (including Operating Lease Liability)

Merck & Co. Inc., debt to capital (including operating lease liability) 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
Current operating lease liability (included in Accrued and other current liabilities) 282 285 281 304 300
Noncurrent operating lease liability (included in Other noncurrent liabilities) 877 928 1,013 1,225 1,362
Total debt (including operating lease liability) 38,270 36,268 31,985 34,631 33,453
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Total capital (including operating lease liability) 84,583 73,849 77,976 72,815 58,770
Solvency Ratio
Debt to capital (including operating lease liability)1 0.45 0.49 0.41 0.48 0.57
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.95 0.85 0.79 0.83 0.87
Amgen Inc. 0.91 0.91 0.92 0.84 0.78
Bristol-Myers Squibb Co. 0.76 0.58 0.57 0.56 0.58
Danaher Corp. 0.26 0.27 0.29 0.34 0.36
Eli Lilly & Co. 0.71 0.71 0.61 0.66 0.75
Gilead Sciences Inc. 0.59 0.53 0.55 0.56 0.64
Johnson & Johnson 0.35 0.31 0.35 0.32 0.36
Pfizer Inc. 0.43 0.46 0.29 0.35 0.39
Regeneron Pharmaceuticals Inc. 0.09 0.10 0.11 0.13 0.20
Thermo Fisher Scientific Inc. 0.40 0.44 0.45 0.47 0.40
Vertex Pharmaceuticals Inc. 0.10 0.04 0.06 0.09 0.10
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.52 0.50 0.45 0.49 0.54
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.46 0.44 0.46 0.49

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 38,270 ÷ 84,583 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Merck & Co. Inc. debt to capital ratio (including operating lease liability) deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Debt to Assets

Merck & Co. Inc., debt to assets 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
 
Total assets 117,106 106,675 109,160 105,694 91,588
Solvency Ratio
Debt to assets1 0.32 0.33 0.28 0.31 0.35
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.50 0.44 0.46 0.52 0.57
Amgen Inc. 0.65 0.67 0.60 0.54 0.52
Bristol-Myers Squibb Co. 0.54 0.42 0.41 0.41 0.43
Danaher Corp. 0.21 0.22 0.23 0.27 0.28
Eli Lilly & Co. 0.43 0.39 0.33 0.35 0.36
Gilead Sciences Inc. 0.45 0.40 0.40 0.39 0.46
Johnson & Johnson 0.20 0.18 0.21 0.19 0.20
Pfizer Inc. 0.30 0.32 0.18 0.21 0.26
Regeneron Pharmaceuticals Inc. 0.07 0.08 0.09 0.11 0.16
Thermo Fisher Scientific Inc. 0.32 0.35 0.35 0.37 0.31
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.04 0.05
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.35 0.34 0.31 0.32 0.36
Debt to Assets, Industry
Health Care 0.30 0.29 0.27 0.28 0.31

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
Debt to assets = Total debt ÷ Total assets
= 37,111 ÷ 117,106 = 0.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Merck & Co. Inc. debt to assets ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

Merck & Co. Inc., debt to assets (including operating lease liability) 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)
Loans payable and current portion of long-term debt 2,649 1,372 1,946 2,412 6,431
Long-term debt, excluding current portion 34,462 33,683 28,745 30,690 25,360
Total debt 37,111 35,055 30,691 33,102 31,791
Current operating lease liability (included in Accrued and other current liabilities) 282 285 281 304 300
Noncurrent operating lease liability (included in Other noncurrent liabilities) 877 928 1,013 1,225 1,362
Total debt (including operating lease liability) 38,270 36,268 31,985 34,631 33,453
 
Total assets 117,106 106,675 109,160 105,694 91,588
Solvency Ratio
Debt to assets (including operating lease liability)1 0.33 0.34 0.29 0.33 0.37
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.50 0.45 0.46 0.53 0.58
Amgen Inc. 0.66 0.67 0.61 0.56 0.53
Bristol-Myers Squibb Co. 0.55 0.44 0.42 0.42 0.44
Danaher Corp. 0.22 0.23 0.25 0.28 0.29
Eli Lilly & Co. 0.44 0.41 0.34 0.36 0.37
Gilead Sciences Inc. 0.46 0.41 0.41 0.40 0.47
Johnson & Johnson 0.21 0.18 0.22 0.19 0.21
Pfizer Inc. 0.31 0.33 0.20 0.23 0.27
Regeneron Pharmaceuticals Inc. 0.08 0.08 0.09 0.11 0.16
Thermo Fisher Scientific Inc. 0.34 0.37 0.37 0.38 0.33
Vertex Pharmaceuticals Inc. 0.08 0.04 0.05 0.07 0.08
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.37 0.35 0.32 0.34 0.37
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.32 0.31 0.29 0.30 0.33

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 38,270 ÷ 117,106 = 0.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Merck & Co. Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Financial Leverage

Merck & Co. Inc., financial leverage 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)
Total assets 117,106 106,675 109,160 105,694 91,588
Total Merck & Co., Inc. stockholders’ equity 46,313 37,581 45,991 38,184 25,317
Solvency Ratio
Financial leverage1 2.53 2.84 2.37 2.77 3.62
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 40.65 13.00 8.04 9.51 11.51
Amgen Inc. 15.63 15.59 17.79 9.13 6.69
Bristol-Myers Squibb Co. 5.67 3.23 3.12 3.04 3.13
Danaher Corp. 1.57 1.58 1.68 1.84 1.92
Eli Lilly & Co. 5.55 5.94 4.65 5.44 8.27
Gilead Sciences Inc. 3.05 2.72 2.97 3.23 3.76
Johnson & Johnson 2.52 2.44 2.44 2.46 2.76
Pfizer Inc. 2.42 2.54 2.06 2.35 2.44
Regeneron Pharmaceuticals Inc. 1.29 1.27 1.29 1.36 1.56
Thermo Fisher Scientific Inc. 1.96 2.11 2.21 2.33 2.00
Vertex Pharmaceuticals Inc. 1.37 1.29 1.30 1.33 1.35
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.93 2.85 2.62 2.86 3.16
Financial Leverage, Industry
Health Care 2.86 2.79 2.67 2.77 2.94

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
Financial leverage = Total assets ÷ Total Merck & Co., Inc. stockholders’ equity
= 117,106 ÷ 46,313 = 2.53

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Merck & Co. Inc. financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Interest Coverage

Merck & Co. Inc., interest coverage 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)
Net income attributable to Merck & Co., Inc. 17,117 365 14,519 13,049 7,067
Add: Net income attributable to noncontrolling interest 16 12 7 13 15
Less: Income from discontinued operations, net of taxes 704
Add: Income tax expense 2,803 1,512 1,918 1,521 1,709
Add: Interest expense 1,271 1,146 962 806 831
Earnings before interest and tax (EBIT) 21,207 3,035 17,406 14,685 9,622
Solvency Ratio
Interest coverage1 16.69 2.65 18.09 18.22 11.58
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 2.32 3.81 7.04 6.36 2.38
Amgen Inc. 2.46 3.73 6.22 6.60 7.44
Bristol-Myers Squibb Co. -3.30 8.24 7.26 7.07 -3.84
Danaher Corp. 17.71 18.64 40.30 32.92 17.35
Eli Lilly & Co. 17.24 14.49 21.53 19.12 21.11
Gilead Sciences Inc. 1.71 8.27 7.22 9.27 2.70
Johnson & Johnson 23.10 20.51 79.71 125.46 83.07
Pfizer Inc. 3.60 1.48 29.05 19.83 6.17
Regeneron Pharmaceuticals Inc. 87.59 58.52 82.80 163.75 67.97
Thermo Fisher Scientific Inc. 6.03 5.54 11.56 17.49 14.07
Vertex Pharmaceuticals Inc. 9.12 100.32 78.23 45.40 54.60
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.51 6.43 15.40 14.91 7.56
Interest Coverage, Industry
Health Care 5.70 7.09 12.71 12.24 7.71

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
Interest coverage = EBIT ÷ Interest expense
= 21,207 ÷ 1,271 = 16.69

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Merck & Co. Inc. interest coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Fixed Charge Coverage

Merck & Co. Inc., fixed charge coverage 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)
Net income attributable to Merck & Co., Inc. 17,117 365 14,519 13,049 7,067
Add: Net income attributable to noncontrolling interest 16 12 7 13 15
Less: Income from discontinued operations, net of taxes 704
Add: Income tax expense 2,803 1,512 1,918 1,521 1,709
Add: Interest expense 1,271 1,146 962 806 831
Earnings before interest and tax (EBIT) 21,207 3,035 17,406 14,685 9,622
Add: Operating lease cost 348 339 334 343 346
Earnings before fixed charges and tax 21,555 3,374 17,740 15,028 9,968
 
Interest expense 1,271 1,146 962 806 831
Operating lease cost 348 339 334 343 346
Fixed charges 1,619 1,485 1,296 1,149 1,177
Solvency Ratio
Fixed charge coverage1 13.31 2.27 13.69 13.08 8.47
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 2.24 3.59 6.54 5.90 2.28
Amgen Inc. 2.37 3.55 5.52 5.67 6.48
Bristol-Myers Squibb Co. -2.75 6.69 6.30 6.01 -3.08
Danaher Corp. 9.05 9.55 13.41 10.85 7.10
Eli Lilly & Co. 13.81 10.98 15.17 13.33 15.06
Gilead Sciences Inc. 1.61 7.18 6.30 8.15 2.45
Johnson & Johnson 18.47 16.50 38.72 48.16 33.93
Pfizer Inc. 3.13 1.34 18.79 14.22 4.98
Regeneron Pharmaceuticals Inc. 53.13 46.55 68.67 138.96 57.70
Thermo Fisher Scientific Inc. 5.01 4.61 8.12 12.19 10.30
Vertex Pharmaceuticals Inc. 2.85 48.66 47.97 29.62 39.35
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.80 5.40 11.85 11.49 6.11
Fixed Charge Coverage, Industry
Health Care 4.66 5.52 9.02 8.67 5.70

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 21,555 ÷ 1,619 = 13.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Merck & Co. Inc. fixed charge coverage ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.