MerckLIM:MRK 73 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates LIM:MRK with a GF Score™ of 73/100 and a GF Value™ of $110.45 (Fairly Valued). The stock has 7 warning signs investors should review. Among 684 Drug Manufacturers companies, Merck ranks worse than 58.04% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Merck's
Operating Income
for the
three
months ended in Mar. 2026 was $-3,201 Mil. Merck's Interest Expense for the
three
months ended in Mar. 2026 was $-479 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Merck's Interest Coverage or its related term are showing as below:
LIM:MRK'
s Interest Coverage Range Over the Past 10 Years
Min: 2.58 Med: 10.29 Max: 19
Current: 8.52
LIM:MRK's Interest Coverage is ranked worse than 58.04% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs LIM:MRK: 8.52
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Merck Interest Coverage Related Terms
Merck Interest Coverage Historical Data
* Premium members only.
The historical data trend for Merck's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LIM:MRK vs AMGN, ABBV, GILD: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Merck's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Merck's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Merck did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Merck (LIM:MRK) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Merck and its competitors. Over the past decade, Merck's Interest Coverage has ranged from 2.58 to 19.00. According to the industry distribution chart, Merck ranks #397 out of 684 companies in the Drug Manufacturers industry, placing it in the top 58%.
Is Merck's Interest Coverage too high?
Merck's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 2.58 to a high of 19.00. Based on the distribution chart, Merck ranks #397 out of 684 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Merck has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck's Interest Coverage compare to AMGN and ABBV?
According to the Drug Manufacturers industry distribution chart, Merck ranks #397 out of 684 companies for Interest Coverage. This places Merck in the lower half of its industry. The industry median Interest Coverage is 12.77. Historically, Merck's own Interest Coverage has ranged from 2.58 to 19.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Merck and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck stock overvalued right now?
Based on GuruFocus' analysis, Merck (LIM:MRK) is currently considered Fairly Valued. The stock's GF Value™ is $110.45, compared to a current price of $120.00 — trading 8.6% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Merck's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Merck (LIM:MRK), the current Interest Coverage is 0 (At Loss) 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 (LIM:MRK) Overvalued in 2026?
Based on GuruFocus' analysis, Merck stock appears to be overvalued.
The current stock price of $120.00 is trading 8.6% above its estimated GF Value™ of $110.45.
GuruFocus considers Merck to be Fairly Valued.
Key valuation signals for LIM:MRK:
Interest Coverage: 0 (At Loss)
GF Value™: $110.45 vs. price of $120.00 (8.6% above fair value)
No single metric tells the full story. See the LIM:MRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, led by Keytruda, is a major contributor to overall sales. The company also has a substantial vaccine business aimed at preventing pediatric diseases, as well as Gardasil for human papillomavirus. Additionally, Merck sells animal health-related drugs. From a geographical perspective, 47% of the company's sales are generated from US human health (pharmaceuticals and vaccines).
73GF Score
Get the complete analysis for LIM:MRK
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