Merck (LTS:0QAH) Debt-to-Equity

: 0.93 (As of Dec. 2023)

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Merck's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,372 Mil. Merck's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $33,683 Mil. Merck's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $37,581 Mil. Merck's debt to equity for the quarter that ended in Dec. 2023 was 0.93.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Merck's Debt-to-Equity or its related term are showing as below:

LTS:0QAH' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.44 Med: 0.79 Max: 1.26
Current: 0.93

During the past 13 years, the highest Debt-to-Equity Ratio of Merck was 1.26. The lowest was 0.44. And the median was 0.79.

LTS:0QAH's Debt-to-Equity is ranked worse than
84.64% of 853 companies
in the Drug Manufacturers industry
Industry Median: 0.29 vs LTS:0QAH: 0.93

Merck Debt-to-Equity Historical Data

The historical data trend for Merck's Debt-to-Equity 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

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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1.02

1.26

0.87

0.67

0.93

Merck Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.67	0.66	0.95	0.85	0.93

Competitive Comparison

For the Drug Manufacturers - General subindustry, Merck's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity Distribution

For the Drug Manufacturers industry and Healthcare sector, Merck's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Merck's Debt-to-Equity falls into.

Merck Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Merck's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1372	+	33683)	/	37581
	=	0.93

Merck's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(1372	+	33683)	/	37581
	=	0.93

Merck (LTS:0QAH) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Merck Debt-to-Equity Related Terms

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Merck (LTS:0QAH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck & Co Inc (LTS:0QAH) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

MRK:USA MRK:Peru MRK:Mexico 1MRKX:Italy 6MKd:UK 6MK:Germany MRK:Chile 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.

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