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Merck KGaAXSWX:MER 84 Cash Ratio is 0.40 as of Mar. 2026, which is 135% above its 10-year median of 0.17. GuruFocus rates XSWX:MER with a GF Score™ of 84/100 and a GF Value™ of CHF134.55. The stock has 10 warning signs investors should review. Among 976 Drug Manufacturers companies, Merck KGaA ranks worse than 61.17% on this metric.
Merck KGaA has a Cash Ratio of 0.40. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Merck KGaA's Cash Ratio or its related term are showing as below:
XSWX:MER'
s Cash Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.17 Max: 0.56
Current: 0.4
During the past 13 years, Merck KGaA's highest Cash Ratio was 0.56. The lowest was 0.05. And the median was 0.17.
XSWX:MER's Cash Ratio is ranked worse than 61.17% of 976
companies
in the Drug Manufacturers industry
Industry Median: 0.61
vs XSWX:MER: 0.40
Merck KGaA (XSWX:MER) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Merck KGaA Cash Ratio Related Terms
Merck KGaA Cash Ratio Historical Data
* Premium members only.
The historical data trend for Merck KGaA's Cash Ratio 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.
XSWX:MER vs ZTS, UTHR, VTRS: Cash Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merck KGaA Cash Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Cash Ratio falls into.
* 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.
Merck KGaA (XSWX:MER) has a Cash Ratio of 0.40 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Merck KGaA and its competitors. This is 135% above median its historical median of 0.17. Over the past decade, Merck KGaA's Cash Ratio has ranged from 0.05 to 0.56. According to the industry distribution chart, Merck KGaA ranks #597 out of 976 companies in the Drug Manufacturers industry, placing it in the top 61.2%.
Is Merck KGaA's Cash Ratio too high?
Merck KGaA's current Cash Ratio of 0.40 is 135% above median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.56. The Drug Manufacturers industry median Cash Ratio is 0.61. Merck KGaA's value of 0.40 is 34.4% below this industry median. Based on the distribution chart, Merck KGaA ranks #597 out of 976 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Merck KGaA has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's Cash Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #597 out of 976 companies for Cash Ratio. This places Merck KGaA in the lower half of its industry. The industry median Cash Ratio is 0.61. Merck KGaA's value of 0.40 is 34.4% below this benchmark. Historically, Merck KGaA's own Cash Ratio has ranged from 0.05 to 0.56 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 0.61, Merck KGaA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Drug Manufacturers company?
The median Cash Ratio among Drug Manufacturers companies is 0.61, based on 976 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current Cash Ratio of 0.40 is 34.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median Cash Ratio is 0.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current Cash Ratio is 0.40, which is 135% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck KGaA stock overvalued right now?
Merck KGaA (XSWX:MER) has a current Cash Ratio of 0.40. The stock's GF Value™ is CHF134.55, compared to a current price of CHF130.30 — trading 3.2% below its estimated fair value. The current Cash Ratio is 0.40, which is 135% above median its 10-year median of 0.17 and 34.4% below the Drug Manufacturers industry median of 0.61. Merck KGaA's overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Cash Ratio is 0.40 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merck KGaA (XSWX:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Merck KGaA stock appears to be undervalued.
The current stock price of CHF130.30 is trading 3.2% below its estimated GF Value™ of CHF134.55.
Key valuation signals for XSWX:MER:
Cash Ratio: 0.40 (135% above median its 10-year median of 0.17)
GF Value™: CHF134.55 vs. price of CHF130.30 (3.2% below fair value)
Industry Position: 34.4% below the Drug Manufacturers median (#597 of 976)
No single metric tells the full story. See the XSWX:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
84GF Score
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