Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Merck & Co. Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 2.54 2.95 2.29 2.45 2.36
Receivables turnover 5.81 6.27 5.28 6.11 6.91
Payables turnover 4.11 4.08 2.96 3.37 3.78
Working capital turnover 9.29 5.16 7.62 109.83 8.90
Average No. Days
Average inventory processing period 144 124 159 149 155
Add: Average receivable collection period 63 58 69 60 53
Operating cycle 207 182 228 209 208
Less: Average payables payment period 89 89 123 108 97
Cash conversion cycle 118 93 105 101 111

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Merck & Co. Inc. inventory turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Merck & Co. Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Merck & Co. Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Merck & Co. Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Merck & Co. Inc. number of days of inventory outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Merck & Co. Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Merck & Co. Inc. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Merck & Co. Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Inventory Turnover

Merck & Co. Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 16,126 17,411 13,626 15,485 14,112
Inventories, excludes inventories classified in Other assets 6,358 5,911 5,953 6,310 5,978
Short-term Activity Ratio
Inventory turnover1 2.54 2.95 2.29 2.45 2.36
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 4.98 4.87 5.58 4.65 4.10
Amgen Inc. 0.89 1.30 1.58 1.58 1.22
Bristol-Myers Squibb Co. 4.02 4.33 4.74 5.68 1.88
Danaher Corp. 3.80 4.03 4.16 4.28 4.87
Eli Lilly & Co. 1.23 1.54 1.88 1.38 1.48
Gilead Sciences Inc. 3.64 3.75 4.08 2.72 5.07
Johnson & Johnson 2.37 2.49 2.87 3.04 3.05
Moderna Inc. 23.23 5.71 1.82 0.17
Pfizer Inc. 2.45 3.82 3.40 1.08 1.23
Regeneron Pharmaceuticals Inc. 0.70 0.65 1.25 0.58 0.55
Thermo Fisher Scientific Inc. 5.06 4.60 3.88 4.02 4.22
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.63 3.11 3.08 2.62 2.39
Inventory Turnover, Industry
Health Care 10.99 10.93 10.91 9.96 10.08

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
Inventory turnover = Cost of sales ÷ Inventories, excludes inventories classified in Other assets
= 16,126 ÷ 6,358 = 2.54

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Merck & Co. Inc. inventory turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Receivables Turnover

Merck & Co. Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales 60,115 59,283 48,704 47,994 46,840
Accounts receivable, net of allowance for doubtful accounts 10,349 9,450 9,230 7,851 6,778
Short-term Activity Ratio
Receivables turnover1 5.81 6.27 5.28 6.11 6.91
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 4.87 5.16 5.63 5.19 6.13
Amgen Inc. 3.70 4.46 4.96 5.36 5.47
Bristol-Myers Squibb Co. 4.93 5.48 5.65 5.72 3.89
Danaher Corp. 6.09 6.40 6.36 5.51 5.61
Eli Lilly & Co. 3.75 4.14 4.24 4.18 4.91
Gilead Sciences Inc. 5.78 5.65 6.01 4.98 6.18
Johnson & Johnson 5.73 5.88 6.14 6.08 5.67
Moderna Inc. 7.48 13.31 5.57 0.14 0.00
Pfizer Inc. 5.23 9.16 7.08 5.28 5.93
Regeneron Pharmaceuticals Inc. 2.31 2.28 2.66 2.07 2.94
Thermo Fisher Scientific Inc. 5.21 5.53 4.92 5.61 5.87
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.95 5.86 5.52 5.21 5.55
Receivables Turnover, Industry
Health Care 9.03 9.77 9.45 9.50 9.90

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
Receivables turnover = Sales ÷ Accounts receivable, net of allowance for doubtful accounts
= 60,115 ÷ 10,349 = 5.81

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Merck & Co. Inc. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Payables Turnover

Merck & Co. Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 16,126 17,411 13,626 15,485 14,112
Trade accounts payable 3,922 4,264 4,609 4,594 3,738
Short-term Activity Ratio
Payables turnover1 4.11 4.08 2.96 3.37 3.78
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc. 5.54 5.94 6.05 6.76 5.12
Amgen Inc. 5.32 4.08 4.72 4.33 3.18
Bristol-Myers Squibb Co. 3.28 3.33 3.37 4.34 3.30
Danaher Corp. 5.58 5.45 4.48 4.79 5.23
Eli Lilly & Co. 2.73 3.43 4.38 3.41 3.36
Gilead Sciences Inc. 11.81 6.25 9.36 5.42 6.56
Johnson & Johnson 2.76 2.66 2.70 2.99 3.23
Moderna Inc. 9.03 11.12 8.67 0.43 0.00
Pfizer Inc. 3.72 5.04 5.53 2.02 2.42
Regeneron Pharmaceuticals Inc. 2.99 2.65 4.32 2.36 1.87
Thermo Fisher Scientific Inc. 8.97 7.67 6.83 7.45 7.40
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.32 4.37 4.26 3.85 3.75
Payables Turnover, Industry
Health Care 7.85 7.55 7.68 7.52 8.05

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
Payables turnover = Cost of sales ÷ Trade accounts payable
= 16,126 ÷ 3,922 = 4.11

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Merck & Co. Inc. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Merck & Co. Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 32,168 35,722 30,266 27,764 27,483
Less: Current liabilities 25,694 24,239 23,872 27,327 22,220
Working capital 6,474 11,483 6,394 437 5,263
 
Sales 60,115 59,283 48,704 47,994 46,840
Short-term Activity Ratio
Working capital turnover1 9.29 5.16 7.62 109.83 8.90
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 0.98
Amgen Inc. 2.25 3.82 3.37 2.55 3.96
Bristol-Myers Squibb Co. 4.60 8.30 3.95 3.72 2.28
Danaher Corp. 4.22 4.20 8.40 3.48 0.87
Eli Lilly & Co. 31.84 8.33 4.93 11.54
Gilead Sciences Inc. 5.61 8.42 8.54 5.30 1.08
Johnson & Johnson 11.81 5.95 9.44 8.81
Moderna Inc. 0.91 2.17 2.55 0.10 0.00
Pfizer Inc. 11.00 4.78 4.58
Regeneron Pharmaceuticals Inc. 0.82 0.96 1.59 1.20 1.41
Thermo Fisher Scientific Inc. 4.05 5.46 5.87 2.76 4.48
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.94 7.57 6.02 5.57 3.08
Working Capital Turnover, Industry
Health Care 20.20 18.71 13.72 14.03 9.09

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
Working capital turnover = Sales ÷ Working capital
= 60,115 ÷ 6,474 = 9.29

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Merck & Co. Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Average Inventory Processing Period

Merck & Co. Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 2.54 2.95 2.29 2.45 2.36
Short-term Activity Ratio (no. days)
Average inventory processing period1 144 124 159 149 155
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 73 75 65 79 89
Amgen Inc. 411 281 231 231 300
Bristol-Myers Squibb Co. 91 84 77 64 194
Danaher Corp. 96 91 88 85 75
Eli Lilly & Co. 298 237 194 265 247
Gilead Sciences Inc. 100 97 89 134 72
Johnson & Johnson 154 147 127 120 119
Moderna Inc. 16 64 201 2,141
Pfizer Inc. 149 95 107 338 296
Regeneron Pharmaceuticals Inc. 519 562 292 625 661
Thermo Fisher Scientific Inc. 72 79 94 91 87
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 139 117 119 139 153
Average Inventory Processing Period, Industry
Health Care 33 33 33 37 36

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.54 = 144

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Merck & Co. Inc. number of days of inventory outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Average Receivable Collection Period

Merck & Co. Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 5.81 6.27 5.28 6.11 6.91
Short-term Activity Ratio (no. days)
Average receivable collection period1 63 58 69 60 53
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 75 71 65 70 60
Amgen Inc. 99 82 74 68 67
Bristol-Myers Squibb Co. 74 67 65 64 94
Danaher Corp. 60 57 57 66 65
Eli Lilly & Co. 97 88 86 87 74
Gilead Sciences Inc. 63 65 61 73 59
Johnson & Johnson 64 62 59 60 64
Moderna Inc. 49 27 66 2,539
Pfizer Inc. 70 40 52 69 62
Regeneron Pharmaceuticals Inc. 158 160 137 177 124
Thermo Fisher Scientific Inc. 70 66 74 65 62
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 74 62 66 70 66
Average Receivable Collection Period, Industry
Health Care 40 37 39 38 37

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.81 = 63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Merck & Co. Inc. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Operating Cycle

Merck & Co. Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 144 124 159 149 155
Average receivable collection period 63 58 69 60 53
Short-term Activity Ratio
Operating cycle1 207 182 228 209 208
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 148 146 130 149 149
Amgen Inc. 510 363 305 299 367
Bristol-Myers Squibb Co. 165 151 142 128 288
Danaher Corp. 156 148 145 151 140
Eli Lilly & Co. 395 325 280 352 321
Gilead Sciences Inc. 163 162 150 207 131
Johnson & Johnson 218 209 186 180 183
Moderna Inc. 65 91 267 4,680
Pfizer Inc. 219 135 159 407 358
Regeneron Pharmaceuticals Inc. 677 722 429 802 785
Thermo Fisher Scientific Inc. 142 145 168 156 149
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 213 179 185 209 219
Operating Cycle, Industry
Health Care 73 70 72 75 73

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 144 + 63 = 207

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Merck & Co. Inc. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Average Payables Payment Period

Merck & Co. Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 4.11 4.08 2.96 3.37 3.78
Short-term Activity Ratio (no. days)
Average payables payment period1 89 89 123 108 97
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc. 66 61 60 54 71
Amgen Inc. 69 90 77 84 115
Bristol-Myers Squibb Co. 111 109 108 84 110
Danaher Corp. 65 67 82 76 70
Eli Lilly & Co. 134 106 83 107 109
Gilead Sciences Inc. 31 58 39 67 56
Johnson & Johnson 132 137 135 122 113
Moderna Inc. 40 33 42 845
Pfizer Inc. 98 72 66 181 151
Regeneron Pharmaceuticals Inc. 122 138 84 155 195
Thermo Fisher Scientific Inc. 41 48 53 49 49
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 85 83 86 95 97
Average Payables Payment Period, Industry
Health Care 46 48 48 49 45

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.11 = 89

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Merck & Co. Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 144 124 159 149 155
Average receivable collection period 63 58 69 60 53
Average payables payment period 89 89 123 108 97
Short-term Activity Ratio
Cash conversion cycle1 118 93 105 101 111
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc. 82 85 70 95 78
Amgen Inc. 441 273 228 215 252
Bristol-Myers Squibb Co. 54 42 34 44 178
Danaher Corp. 91 81 63 75 70
Eli Lilly & Co. 261 219 197 245 212
Gilead Sciences Inc. 132 104 111 140 75
Johnson & Johnson 86 72 51 58 70
Moderna Inc. 25 58 225 3,835
Pfizer Inc. 121 63 93 226 207
Regeneron Pharmaceuticals Inc. 555 584 345 647 590
Thermo Fisher Scientific Inc. 101 97 115 107 100
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 128 96 99 114 122
Cash Conversion Cycle, Industry
Health Care 27 22 24 26 28

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 144 + 6389 = 118

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Merck & Co. Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.