Merck (NYSE:MRK) Cost of Goods Sold

: $15,765 Mil (TTM As of Jun. 2023)

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Merck's cost of goods sold for the three months ended in Jun. 2023 was $4,024 Mil. Its cost of goods sold for the trailing twelve months (TTM) ended in Jun. 2023 was $15,765 Mil.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Merck's Gross Margin % for the three months ended in Jun. 2023 was 73.24%.

Cost of Goods Sold is also directly linked to Inventory Turnover. Merck's Inventory Turnover for the three months ended in Jun. 2023 was 0.68.

Merck Cost of Goods Sold Historical Data

The historical data trend for Merck's Cost of Goods Sold can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Merck Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cost of Goods Sold

13,509.00

12,016.00

13,618.00

13,626.00

17,411.00

Merck Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Cost of Goods Sold																4,216.00	3,934.00	3,881.00	3,926.00	4,024.00

Merck Cost of Goods Sold Calculation

Cost of Goods Sold is the aggregate cost of goods produced and sold, and services rendered during the reporting period. It excludes Total Operating Expense, such as Depreciation, Depletion and Amortization and Selling, General, & Admin. Expense.

Cost of Goods Sold for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $15,765 Mil.

Merck (NYSE:MRK) Cost of Goods Sold Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Merck's Gross Margin % for the three months ended in Jun. 2023 is calculated as:

Gross Margin %	=	(Revenue	-	Cost of Goods Sold)	/	Revenue
	=	(15035	-	4024)	/	15035
	=	73.24 %

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

Merck's Inventory Turnover for the three months ended in Jun. 2023 is calculated as:

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	4024	/	5896.5
	=	0.68

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.

Merck Cost of Goods Sold Related Terms

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Merck (NYSE:MRK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck & Co Inc (NYSE:MRK) » Definitions » Cost of Goods Sold

Comparable Companies

Traded in Other Exchanges

MRK:Peru MRK:Mexico 6MKd:UK 0QAH:UK 6MK:Germany 6MK:Germany 6MK:Germany 6MK:Germany MRCK34:Brazil MRK:Austria MRK:Argentina

Address

126 East Lincoln Avenue, Rahway, NJ, USA, 07065

Website

https://www.merck.com

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.

Executives

Joseph Romanelli	officer: President, Human Health Int?l	126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Chirfi Guindo	officer: Chief Marketing Officer	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Baker Douglas M Jr	director	370 WBASHA ST NORTH, ST PAUL MN 55102
Johannes Jacobus Oosthuizen	officer: SVP, U.S. Market	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Arpa Garay	officer: SVP Human Health Global Mktg.	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Cristal N Downing	officer: Chief Comm. & Public Afrs Ofcr	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Michael A Klobuchar	officer: EVP - Chief Strategy Officer	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Lisa Lecointe-cephas	officer: SVP Chief Ethics & Com Officer	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield	officer: EVP & CFO	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Stephen Mayo	director	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Dean Y Li	officer: Executive VP & President, MRL	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
David Michael Williams	officer: EVP,Chief Info&Digital Officer	MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Risa J Lavizzo-mourey	director	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Christine E Seidman	director	MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kathy J Warden	director	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042