Merck Operating Income vs Gross Profit Analysis

MRK Stock

USD 131.20 0.48 0.37%

Merck financial indicator trend analysis is infinitely more than just investigating Merck Company recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Merck Company is a good investment. Please check the relationship between Merck Operating Income and its Gross Profit accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Merck Company Operating Income account and Gross Profit. At this time, the significance of the direction appears to have weak relationship.

The correlation between Merck's Operating Income and Gross Profit is 0.32. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Merck Company, assuming nothing else is changed. The correlation between historical values of Merck's Operating Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Merck Company are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Operating Income i.e., Merck's Operating Income and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.32

Relationship Direction	Positive
Relationship Strength	Very Weak

View All Relationships

Operating Income

Operating Income is the amount of profit realized from Merck Company operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Merck Company is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Merck Company minus its cost of goods sold. It is profit before Merck operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Most indicators from Merck's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Merck Company current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

At this time, Merck's Selling General Administrative is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.18 this year, although the value of Tax Provision will most likely fall to about 2.2 B.

	2021	2022	2023	2024 (projected)
Gross Profit	35.1B	41.9B	43.9B	46.1B
Total Revenue	48.7B	59.3B	59.9B	32.5B

Gross Profit Total Revenue

Merck fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Property Plant And Equipment Gross	Common Stock Total Equity	Short Term Investments
Total Assets		0.57	0.72	0.79	0.87	0.53	0.28	0.88	0.73	1.0	0.22	0.74	0.61	0.3	0.74	0.93	0.59	0.15	0.7	0.98	0.3	0.8	0.49	0.27	0.95	0.16
Short Long Term Debt Total	0.57		0.92	0.75	0.25	0.89	0.91	0.75	0.2	0.59	0.69	0.11	0.9	-0.27	0.95	0.58	0.95	-0.55	0.97	0.5	0.27	0.24	0.76	0.75	0.64	-0.24
Other Current Liab	0.72	0.92		0.85	0.42	0.81	0.78	0.9	0.35	0.74	0.57	0.31	0.84	-0.19	0.94	0.71	0.89	-0.46	0.96	0.67	0.3	0.4	0.82	0.64	0.77	-0.1
Total Current Liabilities	0.79	0.75	0.85		0.4	0.61	0.6	0.93	0.42	0.81	0.64	0.28	0.63	-0.25	0.77	0.86	0.68	-0.43	0.82	0.73	0.52	0.37	0.86	0.4	0.87	-0.17
Total Stockholder Equity	0.87	0.25	0.42	0.4		0.33	-0.07	0.59	0.79	0.84	-0.17	0.9	0.43	0.67	0.47	0.72	0.36	0.57	0.4	0.9	0.08	0.93	0.05	0.1	0.72	0.37
Property Plant And Equipment Net	0.53	0.89	0.81	0.61	0.33		0.74	0.65	0.33	0.53	0.7	0.13	0.98	-0.14	0.84	0.57	0.93	-0.36	0.87	0.5	0.15	0.39	0.62	0.89	0.53	-0.4
Net Debt	0.28	0.91	0.78	0.6	-0.07	0.74		0.57	-0.21	0.33	0.65	-0.22	0.75	-0.51	0.8	0.28	0.84	-0.73	0.83	0.18	0.11	-0.09	0.73	0.71	0.41	-0.2
Retained Earnings	0.88	0.75	0.9	0.93	0.59	0.65	0.57		0.48	0.89	0.49	0.45	0.69	-0.14	0.82	0.84	0.76	-0.31	0.83	0.84	0.26	0.5	0.8	0.48	0.9	0.01
Cash	0.73	0.2	0.35	0.42	0.79	0.33	-0.21	0.48		0.69	0.1	0.8	0.35	0.54	0.38	0.75	0.24	0.44	0.35	0.8	0.41	0.81	0.11	0.07	0.6	-0.08
Non Current Assets Total	1.0	0.59	0.74	0.81	0.84	0.53	0.33	0.89	0.69		0.25	0.69	0.62	0.26	0.76	0.92	0.6	0.11	0.72	0.96	0.3	0.79	0.53	0.28	0.95	0.13
Non Currrent Assets Other	0.22	0.69	0.57	0.64	-0.17	0.7	0.65	0.49	0.1	0.25		-0.34	0.62	-0.63	0.53	0.4	0.63	-0.72	0.61	0.16	0.36	-0.09	0.8	0.71	0.3	-0.76
Cash And Short Term Investments	0.74	0.11	0.31	0.28	0.9	0.13	-0.22	0.45	0.8	0.69	-0.34		0.21	0.74	0.34	0.63	0.17	0.61	0.28	0.83	0.2	0.79	-0.1	-0.16	0.62	0.52
Net Receivables	0.61	0.9	0.84	0.63	0.43	0.98	0.75	0.69	0.35	0.62	0.62	0.21		-0.04	0.9	0.62	0.93	-0.29	0.91	0.57	0.13	0.47	0.6	0.83	0.62	-0.28
Common Stock Shares Outstanding	0.3	-0.27	-0.19	-0.25	0.67	-0.14	-0.51	-0.14	0.54	0.26	-0.63	0.74	-0.04		-0.05	0.23	-0.2	0.92	-0.12	0.38	0.08	0.67	-0.61	-0.38	0.19	0.47
Non Current Liabilities Total	0.74	0.95	0.94	0.77	0.47	0.84	0.8	0.82	0.38	0.76	0.53	0.34	0.9	-0.05		0.71	0.9	-0.34	0.99	0.68	0.27	0.47	0.7	0.63	0.79	-0.1
Inventory	0.93	0.58	0.71	0.86	0.72	0.57	0.28	0.84	0.75	0.92	0.4	0.63	0.62	0.23	0.71		0.55	0.03	0.72	0.92	0.53	0.72	0.57	0.25	0.94	-0.05
Other Current Assets	0.59	0.95	0.89	0.68	0.36	0.93	0.84	0.76	0.24	0.6	0.63	0.17	0.93	-0.2	0.9	0.55		-0.43	0.92	0.54	0.13	0.34	0.69	0.86	0.59	-0.19
Other Stockholder Equity	0.15	-0.55	-0.46	-0.43	0.57	-0.36	-0.73	-0.31	0.44	0.11	-0.72	0.61	-0.29	0.92	-0.34	0.03	-0.43		-0.42	0.23	-0.12	0.57	-0.74	-0.48	-0.03	0.46
Total Liab	0.7	0.97	0.96	0.82	0.4	0.87	0.83	0.83	0.35	0.72	0.61	0.28	0.91	-0.12	0.99	0.72	0.92	-0.42		0.64	0.35	0.4	0.75	0.66	0.77	-0.17
Total Current Assets	0.98	0.5	0.67	0.73	0.9	0.5	0.18	0.84	0.8	0.96	0.16	0.83	0.57	0.38	0.68	0.92	0.54	0.23	0.64		0.31	0.82	0.4	0.22	0.91	0.21
Short Term Debt	0.3	0.27	0.3	0.52	0.08	0.15	0.11	0.26	0.41	0.3	0.36	0.2	0.13	0.08	0.27	0.53	0.13	-0.12	0.35	0.31		0.12	0.3	-0.16	0.41	-0.27
Intangible Assets	0.8	0.24	0.4	0.37	0.93	0.39	-0.09	0.5	0.81	0.79	-0.09	0.79	0.47	0.67	0.47	0.72	0.34	0.57	0.4	0.82	0.12		0.07	0.16	0.65	0.15
Accounts Payable	0.49	0.76	0.82	0.86	0.05	0.62	0.73	0.8	0.11	0.53	0.8	-0.1	0.6	-0.61	0.7	0.57	0.69	-0.74	0.75	0.4	0.3	0.07		0.57	0.58	-0.37
Property Plant And Equipment Gross	0.27	0.75	0.64	0.4	0.1	0.89	0.71	0.48	0.07	0.28	0.71	-0.16	0.83	-0.38	0.63	0.25	0.86	-0.48	0.66	0.22	-0.16	0.16	0.57		0.22	-0.48
Common Stock Total Equity	0.95	0.64	0.77	0.87	0.72	0.53	0.41	0.9	0.6	0.95	0.3	0.62	0.62	0.19	0.79	0.94	0.59	-0.03	0.77	0.91	0.41	0.65	0.58	0.22		0.14
Short Term Investments	0.16	-0.24	-0.1	-0.17	0.37	-0.4	-0.2	0.01	-0.08	0.13	-0.76	0.52	-0.28	0.47	-0.1	-0.05	-0.19	0.46	-0.17	0.21	-0.27	0.15	-0.37	-0.48	0.14

Click cells to compare fundamentals

Merck Account Relationship Matchups

Merck fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	84.4B	91.6B	105.7B	109.2B	106.7B	60.3B
Short Long Term Debt Total	26.3B	31.8B	33.1B	30.7B	36.3B	38.1B
Other Current Liab	14.9B	16.3B	16.9B	18.0B	15.5B	16.3B
Total Current Liabilities	22.2B	27.3B	23.9B	24.2B	25.7B	13.3B
Total Stockholder Equity	25.9B	25.3B	38.2B	46.0B	37.6B	25.5B
Property Plant And Equipment Net	15.1B	18.0B	19.3B	21.4B	24.5B	25.7B
Net Debt	16.7B	23.7B	25.0B	18.0B	29.4B	30.8B
Retained Earnings	46.6B	47.4B	53.7B	61.1B	53.9B	32.6B
Cash	9.7B	8.1B	8.1B	12.7B	6.9B	5.6B
Non Current Assets Total	56.9B	63.8B	75.4B	73.4B	74.5B	41.1B
Non Currrent Assets Other	5.3B	9.2B	8.1B	7.7B	9.2B	6.1B
Cash And Short Term Investments	10.5B	8.1B	8.1B	13.2B	7.2B	7.3B
Net Receivables	6.8B	7.9B	9.2B	9.5B	11.1B	11.6B
Common Stock Shares Outstanding	2.6B	2.5B	2.5B	2.5B	2.5B	2.7B
Liabilities And Stockholders Equity	84.4B	91.6B	105.7B	109.2B	106.7B	60.3B
Non Current Liabilities Total	36.2B	38.9B	43.6B	38.9B	43.3B	45.5B
Inventory	6.0B	6.3B	6.0B	5.9B	6.4B	3.7B
Other Current Assets	4.3B	5.5B	7.0B	7.2B	7.6B	8.0B
Other Stockholder Equity	(16.3B)	(17.2B)	(12.9B)	(12.1B)	(12.9B)	(12.3B)
Total Liab	58.4B	66.2B	67.4B	63.1B	69.0B	72.5B
Total Current Assets	27.5B	27.8B	30.3B	35.7B	32.2B	19.2B
Short Term Debt	3.6B	6.4B	2.4B	1.9B	1.7B	2.3B
Intangible Assets	14.2B	14.6B	22.9B	20.3B	18.0B	14.3B
Accounts Payable	3.7B	4.6B	4.6B	4.3B	3.9B	2.8B
Property Plant And Equipment Gross	15.1B	18.0B	37.5B	39.4B	41.3B	43.4B
Accumulated Other Comprehensive Income	(6.2B)	(6.6B)	(4.4B)	(4.8B)	(5.2B)	(4.9B)
Short Term Investments	774M	1M	0.0	498M	252M	239.4M
Other Liab	12.7B	12.1B	11.7B	9.1B	10.5B	10.2B
Other Assets	5.3B	7.8B	9.4B	7.4B	8.5B	5.5B
Long Term Debt	22.7B	25.4B	30.7B	28.7B	33.7B	17.2B
Good Will	19.4B	20.2B	21.3B	21.2B	21.2B	12.3B
Treasury Stock	(56.0B)	(56.8B)	(57.1B)	(56.5B)	(57.5B)	(54.6B)
Property Plant Equipment	15.1B	18.0B	19.3B	21.4B	24.6B	16.2B
Net Tangible Assets	(7.7B)	(9.5B)	3.5B	4.5B	4.1B	4.5B
Noncontrolling Interest In Consolidated Entity	94M	87M	73M	67M	54M	51.3M

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When determining whether Merck Company is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Merck Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Merck Company Stock. Highlighted below are key reports to facilitate an investment decision about Merck Company Stock:

How To Invest In Merck

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Is Merck Stock a good investment?

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What is Merck's Net Worth?

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Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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When running Merck's price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.

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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.453

Dividend Share

2.92

Earnings Share

0.14

Revenue Per Share

23.695

Quarterly Revenue Growth

0.058

The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Merck Operating Income vs Gross Profit Analysis

Operating Income vs Gross Profit

Operating Income vs Gross Profit Correlation Analysis

Correlation Coefficient

Operating Income

Gross Profit

Merck fundamental ratios Correlations

Merck Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Merck fundamental ratios Accounts

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Merck Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Non Current Assets Total	+ 1.0	Total Assets
Total Liab	+ 0.99	Non Current Liabilities Total
Total Current Assets	+ 0.98	Total Assets
Net Receivables	+ 0.98	Property Plant And Equipment Net
Total Liab	+ 0.97	Short Long Term Debt Total
Total Liab	+ 0.96	Other Current Liab

Short Term Investments	- 0.76	Non Currrent Assets Other
Accounts Payable	- 0.74	Other Stockholder Equity
Other Stockholder Equity	- 0.73	Net Debt
Other Stockholder Equity	- 0.72	Non Currrent Assets Other
Common Stock Shares Outstanding	- 0.63	Non Currrent Assets Other
Accounts Payable	- 0.61	Common Stock Shares Outstanding