Merck (MRK) FY2017 results: revenue $40.1 billion, up 0.8% on the year
Merck & Co., Inc. (MRK) reported revenue of $40.1 billion for fiscal 2017, the year ended 31 December 2017, up 0.8% on the year before. Net income was $2.4 billion, down 38.9%, and diluted earnings per share $0.87. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2019.
Revenue
$40.1 billion
+0.8% on the year
FY2010FY2017
Operating margin
n/a
FY2010FY2017
Net income
$2.4 billion
-38.9% on the year
FY2010FY2017
Diluted EPS
$0.87
-38.3% on the year
FY2010FY2017
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Revenue
40,122
39,807
39,498
+0.8%
Cost of revenue
12,912
14,030
14,934
-8.0%
Gross profit
27,210
25,777
24,564
+5.6%
Gross margin
67.8%
64.8%
62.2%
Research and development
10,339
10,261
6,704
+0.8%
Selling, general and administrative
10,074
10,017
10,313
+0.6%
Interest expense
754
693
672
+8.8%
Pre-tax income
6,521
4,659
5,401
+40.0%
Income tax
4,103
718
942
+471.4%
Effective tax rate
62.9%
15.4%
17.4%
Net income
2,394
3,920
4,442
-38.9%
Net margin
6.0%
9.8%
11.2%
Diluted EPS
$0.87
$1.41
$1.56
-38.3%
$ 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
FY2017
FY2016
FY2015
On the year
Last 8 years
Operating cash flow
6,447
10,376
12,538
-37.9%
Capital expenditure
1,888
1,614
1,283
+17.0%
Free cash flow
4,559
8,762
11,255
-48.0%
Free cash flow margin
11.4%
22.0%
28.5%
Cash from investing
2,679
-3,210
-4,758
Cash from financing
-10,006
-9,044
-5,387
Depreciation and amortisation
4,676
5,471
6,375
-14.5%
Share-based compensation
312
300
299
+4.0%
Buybacks
4,014
3,434
4,186
+16.9%
Dividends paid
5,167
5,124
5,117
+0.8%
Dividend per share
$1.89
$1.85
$1.81
+2.2%
Diluted shares, weighted
2,748m
2,787m
2,841m
-1.4%
Balance sheet
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Shareholders' equity
34,336
40,088
44,676
-14.3%
Non-controlling interest
233
220
91.0
+5.9%
Debt
24,353
24,842
26,412
-2.0%
Other liabilities
28,950
30,227
30,600
-4.2%
Total liabilities and equity
87,872
95,377
101,779
-7.9%
Fixed assets
12,439
12,026
12,507
+3.4%
Goodwill
18,284
18,162
17,723
+0.7%
Intangible assets
14,183
17,305
22,602
-18.0%
Investments
14,531
19,242
17,942
-24.5%
Cash and equivalents
6,092
6,515
8,524
-6.5%
Receivables
6,873
7,018
6,484
-2.1%
Inventory
5,096
4,866
4,700
+4.7%
Other assets
10,374
10,243
11,297
+1.3%
Total assets
87,872
95,377
101,779
-7.9%
10-K for the year ended 31 December 2017, filed 27 February 2019: the filing.