Analysis of Reportable Segments
Merck & Co. Inc. operates in 2 segments: Pharmaceutical and Animal Health.
Segment Profit Margin
Merck & Co. Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Pharmaceutical | 72.56% | 70.86% | 72.45% | 69.09% | 67.84% |
| Animal Health | 30.88% | 35.37% | 35.02% | 35.08% | 36.63% |
Based on: 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), 10-K (reporting date: 2019-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmaceutical | Pharmaceutical segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Animal Health | Animal Health segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: Pharmaceutical
Merck & Co. Inc.; Pharmaceutical; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profits | 38,880) | 36,852) | 30,977) | 29,722) | 28,324) |
| Sales | 53,583) | 52,005) | 42,754) | 43,021) | 41,751) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 72.56% | 70.86% | 72.45% | 69.09% | 67.84% |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment profits ÷ Sales
= 100 × 38,880 ÷ 53,583 = 72.56%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmaceutical | Pharmaceutical segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Profit Margin: Animal Health
Merck & Co. Inc.; Animal Health; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profits | 1,737) | 1,963) | 1,950) | 1,650) | 1,609) |
| Sales | 5,625) | 5,550) | 5,568) | 4,703) | 4,393) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 30.88% | 35.37% | 35.02% | 35.08% | 36.63% |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Segment profits ÷ Sales
= 100 × 1,737 ÷ 5,625 = 30.88%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Animal Health | Animal Health segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Sales
Merck & Co. Inc., sales by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Pharmaceutical | 53,583) | 52,005) | 42,754) | 43,021) | 41,751) |
| Animal Health | 5,625) | 5,550) | 5,568) | 4,703) | 4,393) |
| Other segments | —) | —) | —) | 23) | 175) |
| Total segment | 59,208) | 57,555) | 48,322) | 47,747) | 46,319) |
Based on: 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), 10-K (reporting date: 2019-12-31).
Segment profits
Merck & Co. Inc., segment profits by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Pharmaceutical | 38,880) | 36,852) | 30,977) | 29,722) | 28,324) |
| Animal Health | 1,737) | 1,963) | 1,950) | 1,650) | 1,609) |
| Other segments | —) | —) | —) | 1) | (7) |
| Total segment | 40,617) | 38,815) | 32,927) | 31,373) | 29,926) |
Based on: 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), 10-K (reporting date: 2019-12-31).