Calculate the financial indicators of the firm Merck for the year 2018 and fill in the spaces marked in the table. Company Name: Year 2018 Chemicals and Allied Products Industry Ratios ………….. Solvency or Debt Ratios Merck J&J 2018 Debt ratio …. …. 0.47 Debt-to-equity ratio …. …. 0.38 Interest coverage ratio …. …. -9.43 Liquidity Ratios Current ratio …. …. 3.47 Quick ratio …. …. 2.12 Cash ratio …. …. 2.24 Profitability Ratios Profit margin …. …. -93.4% ROE (Return on equity), after tax …. …. -248.5 ROA (Return on assets) …. …. -146.5 Gross margin …. …. 55.3% Operating margin (Return on sales) …. …. -42.9% Activity or Efficiency Ratios Asset turnover …. …. 1.08 Receivables turnover (days) …. …. 16 Inventory turnover (days) …. …. 36 Price Ratios Dividend Payout Ratio …. …. 0.15 Merck & Company, Inc. (MRK) Balance Sheet December 31, 2018 ($ in millions) ASSETS Current Assets Cash, cash equivalents and short-term investments $8,864 Receivables 7,071 Inventory 5,440 Other current assets 4,500 Total Current Assets: 25,875 Noncurrent Assets Property, plant and equipment, net 13,291 Net Intangible assets (including goodwill) 29,684 Other noncurrent assets 13,787 Total Noncurrent Assets: 56,762 TOTAL ASSETS: $82,637 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 3,318 Accrued liabilities 3,429 Short term debt 5,308 Other noncurrent liabilities 10,151 Total current liabilities: 22,206 Noncurrent Liabilities Long-term debt and lease obligation 19,806 Liabilities, other than long-term debt (pension, defferred tax, other) 13,743 Total noncurrent liabilities: 33,549 TOTAL LIABILITIES: 55,755 Stockholders'equity Common stock 1,788 Treasury stock, value -50,929 Additional paid in capital 38,808 Accumulated other comprehensive loss -5,545 Retained earnings 42,579 Stockholders'equity attributable to noncontrolling interest 181 Total stockhholders'equity 26,882 Total Liabilities and Stockholders'Equity: $82,637 Merck & Company, Inc. (MRK) Income Statement For period ending December 31, 2018 ($ in millions) Revenues Revenues, net $42,294 Cost of Revenue -13,509 Gross profit: 28,785 Operating Expenses -20,486 Operating Income: 8,299 Nonoperating income (expense) 402 Interest and debt expense -772 Other undisclosed income (loss) from continuing operations before income taxes: 772 Income from continuing operations before income taxes: 8,701 Income tax expense -2,508 Net Income available to stockholder $6,193 Dividends paid to Stockholders -5,172 Retained Earnings $1,021
Calculate the financial indicators of the firm Merck for the year 2018 and fill in the spaces marked in the table.
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Company Name: |
Year 2018 |
Chemicals and Allied Products Industry Ratios |
|
|
………….. |
|||
|
Solvency or Debt Ratios |
Merck |
J&J |
2018 |
|
Debt ratio |
…. |
…. |
0.47 |
|
Debt-to-equity ratio |
…. |
…. |
0.38 |
|
Interest coverage ratio |
…. |
…. |
-9.43 |
|
Liquidity Ratios |
|
|
|
|
Current ratio |
…. |
…. |
3.47 |
|
Quick ratio |
…. |
…. |
2.12 |
|
Cash ratio |
…. |
…. |
2.24 |
|
Profitability Ratios |
|
|
|
|
Profit margin |
…. |
…. |
-93.4% |
|
ROE ( |
…. |
…. |
-248.5 |
|
ROA ( |
…. |
…. |
-146.5 |
|
Gross margin |
…. |
…. |
55.3% |
|
Operating margin (Return on sales) |
…. |
…. |
-42.9% |
|
Activity or Efficiency Ratios |
|
|
|
|
Asset turnover |
…. |
…. |
1.08 |
|
Receivables turnover (days) |
…. |
…. |
16 |
|
Inventory turnover (days) |
…. |
…. |
36 |
|
Price Ratios |
|
|
|
|
Dividend Payout Ratio |
…. |
…. |
0.15 |
|
Merck & Company, Inc. (MRK) |
|
|
December 31, 2018 ($ in millions) |
|
|
ASSETS |
|
|
Current Assets |
|
|
Cash, cash equivalents and short-term investments |
$8,864 |
|
Receivables |
7,071 |
|
Inventory |
5,440 |
|
Other current assets |
4,500 |
|
Total Current Assets: |
25,875 |
|
Noncurrent Assets |
|
|
Property, plant and equipment, net |
13,291 |
|
Net Intangible assets (including |
29,684 |
|
Other noncurrent assets |
13,787 |
|
Total Noncurrent Assets: |
56,762 |
|
TOTAL ASSETS: |
$82,637 |
|
LIABILITIES AND EQUITY |
|
|
Liabilities |
|
|
Current Liabilities |
|
|
Accounts Payable |
3,318 |
|
Accrued liabilities |
3,429 |
|
Short term debt |
5,308 |
|
Other noncurrent liabilities |
10,151 |
|
Total current liabilities: |
22,206 |
|
Noncurrent Liabilities |
|
|
Long-term debt and lease obligation |
19,806 |
|
Liabilities, other than long-term debt (pension, defferred tax, other) |
13,743 |
|
Total noncurrent liabilities: |
33,549 |
|
TOTAL LIABILITIES: |
55,755 |
|
Stockholders'equity |
|
|
Common stock |
1,788 |
|
|
-50,929 |
|
Additional paid in capital |
38,808 |
|
Accumulated other comprehensive loss |
-5,545 |
|
|
42,579 |
|
Stockholders'equity attributable to noncontrolling interest |
181 |
|
Total stockhholders'equity |
26,882 |
|
Total Liabilities and Stockholders'Equity: |
$82,637 |
|
Merck & Company, Inc. (MRK) Income Statement |
|
|
For period ending December 31, 2018 ($ in millions) |
|
|
Revenues |
|
|
Revenues, net |
$42,294 |
|
Cost of Revenue |
-13,509 |
|
Gross profit: |
28,785 |
|
Operating Expenses |
-20,486 |
|
Operating Income: |
8,299 |
|
Nonoperating income (expense) |
402 |
|
Interest and debt expense |
-772 |
|
Other undisclosed income (loss) from continuing operations before income taxes: |
772 |
|
Income from continuing operations before income taxes: |
8,701 |
|
Income tax expense |
-2,508 |
|
Net Income available to stockholder |
$6,193 |
|
Dividends paid to Stockholders |
-5,172 |
|
Retained Earnings |
$1,021 |
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