Merck (MRK) ROCE % : -8.44% (As of Dec. 2023)

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What is Merck ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Merck's annualized ROCE % for the quarter that ended in Dec. 2023 was -8.44%.

Merck ROCE % Historical Data

The historical data trend for Merck's ROCE % 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 ROCE % Chart

Merck Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.15

10.59

20.11

20.88

3.66

Merck Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															17.74	18.36	-24.41	28.84	-8.44

Merck ROCE % Calculation

Merck's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	3035	/	( ( (109160 - 24239)	+	(106675 - 25694) )	/ 2 )
	=	3035	/	( (84921	+	80981)	/ 2 )
	=	3035	/	82951
	=	3.66 %

Merck's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-6944	/	( ( (106727 - 23094)	+	(106675 - 25694) )	/ 2 )
	=	-6944	/	( ( 83633	+	80981 )	/ 2 )
	=	-6944	/	82307
	=	-8.44 %

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

Merck (NYSE:MRK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Merck ROCE % Related Terms

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Merck (MRK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck & Co Inc (NYSE:MRK) » Definitions » ROCE %

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Traded in Other Exchanges

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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

Johannes Jacobus Oosthuizen	officer: SVP, U.S. Market	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Richard R. Deluca	officer: EVP&Pres, Merck Animal Heallth	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Steven Mizell	officer: EVP,Human Resources	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Joseph Romanelli	officer: President, Human Health Int?l	126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Rita A Karachun	officer: Sr. VP Fince-Global Controller	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Jennifer Zachary	officer: EVP, General Counsel	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
Robert M Davis	officer: Evp, Global Svcs & CFO	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Sanat Chattopadhyay	officer: Exe V-P & Pres. MMD	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kenneth C Frazier	officer: Chairman, President & CEO	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
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
Arpa Garay	officer: SVP Human Health Global Mktg.	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield	officer: EVP & CFO	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Julie L. Gerberding	officer: EVP Strat Comm, GI Pub Policy	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033