Merck (BUE:MRK) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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 Dec. 2023 was ARS-618,393 Mil. Merck's Interest Expense for the three months ended in Dec. 2023 was ARS-111,910 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:

BUE:MRK' s Interest Coverage Range Over the Past 10 Years
Min: 2.58 Med: 9.07 Max: 19
Current: 2.58

BUE:MRK's Interest Coverage is ranked worse than
80.81% of 688 companies
in the Drug Manufacturers industry
Industry Median: 12.175 vs BUE:MRK: 2.58

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Merck Interest Coverage Historical Data

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.

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Merck Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

8.88

6.68

16.38

19.00

2.58

Merck Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																14.84	15.73	-	18.52	-

Competitive 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 Distribution

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.

Merck Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Merck's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Merck's Interest Expense was ARS-413,706 Mil. Its Operating Income was ARS1,066,394 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS12,159,563 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1066394.001	/	-413706
	=	2.58

Merck's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Merck's Interest Expense was ARS-111,910 Mil. Its Operating Income was ARS-618,393 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS12,159,563 Mil.

Merck did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Merck (BUE:MRK) Interest Coverage Explanation

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

Thank you for viewing the detailed overview of Merck's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Merck (BUE:MRK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck & Co Inc (BUE:MRK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MRK:USA MRK:Peru MRK:Mexico 1MRKX:Italy 6MKd:UK 0QAH:UK 6MK:Germany MRK:Chile MRCK34:Brazil MRK:Austria

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.