Merck (MRK) FY2016 results: revenue $39.8 billion, up 0.8% on the year
Merck & Co., Inc. (MRK) reported revenue of $39.8 billion for fiscal 2016, the year ended 31 December 2016, up 0.8% on the year before. Net income was $3.9 billion, down 11.8%, and diluted earnings per share $1.41. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2019.
Revenue
$39.8 billion
+0.8% on the year
FY2009FY2016
Operating margin
n/a
FY2009FY2016
Net income
$3.9 billion
-11.8% on the year
FY2009FY2016
Diluted EPS
$1.41
-9.6% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
39,807
39,498
42,237
+0.8%
Cost of revenue
14,030
14,934
16,768
-6.1%
Gross profit
25,777
24,564
25,469
+4.9%
Gross margin
64.8%
62.2%
60.3%
Research and development
10,261
6,704
7,180
+53.1%
Selling, general and administrative
10,017
10,313
11,606
-2.9%
Interest expense
693
672
732
+3.1%
Pre-tax income
4,659
5,401
17,283
-13.7%
Income tax
718
942
5,349
-23.8%
Effective tax rate
15.4%
17.4%
30.9%
Net income
3,920
4,442
11,920
-11.8%
Net margin
9.8%
11.2%
28.2%
Diluted EPS
$1.41
$1.56
$4.07
-9.6%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
10,376
12,538
7,989
-17.2%
Capital expenditure
1,614
1,283
1,317
+25.8%
Free cash flow
8,762
11,255
6,672
-22.2%
Free cash flow margin
22.0%
28.5%
15.8%
Cash from investing
-3,210
-4,758
-374
Cash from financing
-9,044
-5,387
-15,242
Depreciation and amortisation
5,471
6,375
6,691
-14.2%
Share-based compensation
300
299
278
+0.3%
Buybacks
3,434
4,186
7,703
-18.0%
Dividends paid
5,124
5,117
5,170
+0.1%
Dividend per share
$1.85
$1.81
$1.77
+2.2%
Diluted shares, weighted
2,787m
2,841m
2,928m
-1.9%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
40,088
44,676
48,647
-10.3%
Non-controlling interest
220
91.0
144
+141.8%
Debt
24,842
26,412
21,403
-5.9%
Other liabilities
30,227
30,600
28,141
-1.2%
Total liabilities and equity
95,377
101,779
98,335
-6.3%
Fixed assets
12,026
12,507
13,136
-3.8%
Goodwill
18,162
17,723
12,992
+2.5%
Intangible assets
17,305
22,602
20,386
-23.4%
Investments
19,242
17,942
21,793
+7.2%
Cash and equivalents
6,515
8,524
7,441
-23.6%
Receivables
7,018
6,484
6,626
+8.2%
Inventory
4,866
4,700
5,571
+3.5%
Other assets
10,243
11,297
10,390
-9.3%
Total assets
95,377
101,779
98,335
-6.3%
10-K for the year ended 31 December 2016, filed 27 February 2019: the filing.