Merck (NYSE:MRK) EBIT

: $6,409 Mil (TTM As of Jun. 2023)

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Merck's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2023 was $-5,058 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2023 was $6,409 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Merck's annualized ROC % for the quarter that ended in Jun. 2023 was -29.03%. Merck's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -81.60%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Merck's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was 2.13%.

Merck EBIT Historical Data

The historical data trend for Merck's EBIT 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.

* Premium members only.

Merck Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

EBIT

9,473.00

8,064.00

6,694.00

14,685.00

17,406.00

Merck Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
EBIT																4,727.00	3,827.00	3,748.00	3,892.00	-5,058.00

Merck EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT 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 $6,409 Mil.

Merck (NYSE:MRK) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Merck's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-20048 * ( 1 - -11.94% )	/	( (77066	+	77536)	/ 2 )
=	-22441.7312	/	77301
=	-29.03 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	107796	-	20459	-	( 10387	-	max(0, 23131	-	33402	+	10387	))
=	77066

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	104469	-	20555	-	( 6378	-	max(0, 23394	-	29977	+	6378	))
=	77536

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Merck's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Jun. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-20232	/	( ( (21758 + max(2556, 0))	+	(22231 + max(3044, 0)) )	/	2 )
=	-20232	/	( ( 24314	+	25275 )	/	2 )
=	-20232	/	24794.5
=	-81.60 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(10415	+	5863	+	6737)	-	(20459	+	0	+	0)
=	2556

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(11030	+	5930	+	6639)	-	(20555	+	0	+	0)
=	3044

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Merck's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Jun. 2023 )
	=	6409	/	300373.001
	=	2.13 %

Merck EBIT 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 » EBIT

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