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Merck (NYSE:MRK) Profitability Rank

: 8 (As of Mar. 2023)
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Merck has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Merck's Operating Margin % for the quarter that ended in Mar. 2023 was 26.27%. As of today, Merck's Piotroski F-Score is 6.


Competitive Comparison

For the Drug Manufacturers - General subindustry, Merck's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

For the Drug Manufacturers industry and Healthcare sector, Merck's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Merck's Profitability Rank falls in comparison to its industry or sector. The grey bar indicates the Profitability Rank's extreme value range as defined by GuruFocus.



Merck Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Merck has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Merck's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=3806 / 14487
=26.27 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Merck has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Merck & Co Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Merck Profitability Rank Related Terms

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


Merck (NYSE:MRK) Business Description

Merck logo
Address
2000 Galloping Hill Road, Kenilworth, NJ, USA, 07033
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 hepatitis B and pediatric diseases as well as HPV and shingles. 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
Joseph Romanelli officer: President, Human Health Int?l 126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
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
Johannes Jacobus Oosthuizen officer: SVP, U.S. Market 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Arpa Garay officer: SVP Human Health Global Mktg. 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Cristal N Downing officer: Chief Comm. & Public Afrs Ofcr 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Michael A Klobuchar officer: EVP - Chief Strategy Officer 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Lisa Lecointe-cephas officer: SVP Chief Ethics & Com Officer 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield officer: EVP & CFO 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Stephen Mayo director 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Dean Y Li officer: Executive VP & President, MRL 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
Risa J Lavizzo-mourey director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Christine E Seidman director MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kathy J Warden director 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042

Merck (NYSE:MRK) Headlines

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