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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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