Merck (MRK) FY2018 results: revenue $42.3 billion, up 5.4% on the year
Merck & Co., Inc. (MRK) reported revenue of $42.3 billion for fiscal 2018, the year ended 31 December 2018, up 5.4% on the year before. Net income was $6.2 billion, up 159.8%, and diluted earnings per share $2.32. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2019.
Revenue
$42.3 billion
+5.4% on the year
FY2011FY2018
Operating margin
n/a
FY2011FY2018
Net income
$6.2 billion
+159.8% on the year
FY2011FY2018
Diluted EPS
$2.32
+166.7% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
42,294
40,122
39,807
+5.4%
Cost of revenue
13,509
12,912
14,030
+4.6%
Gross profit
28,785
27,210
25,777
+5.8%
Gross margin
68.1%
67.8%
64.8%
Research and development
9,752
10,339
10,261
-5.7%
Selling, general and administrative
10,102
10,074
10,017
+0.3%
Interest expense
772
754
693
+2.4%
Pre-tax income
8,701
6,521
4,659
+33.4%
Income tax
2,508
4,103
718
-38.9%
Effective tax rate
28.8%
62.9%
15.4%
Net income
6,220
2,394
3,920
+159.8%
Net margin
14.7%
6.0%
9.8%
Diluted EPS
$2.32
$0.87
$1.41
+166.7%
$ 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
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
10,922
6,447
10,376
+69.4%
Capital expenditure
2,615
1,888
1,614
+38.5%
Free cash flow
8,307
4,559
8,762
+82.2%
Free cash flow margin
19.6%
11.4%
22.0%
Cash from investing
4,314
2,679
-3,210
+61.0%
Cash from financing
-13,160
-10,006
-9,044
Depreciation and amortisation
4,519
4,676
5,471
-3.4%
Share-based compensation
348
312
300
+11.5%
Buybacks
9,091
4,014
3,434
+126.5%
Dividends paid
5,172
5,167
5,124
+0.1%
Dividend per share
$1.99
$1.89
$1.85
+5.3%
Diluted shares, weighted
2,679m
2,748m
2,787m
-2.5%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
26,701
34,336
40,088
-22.2%
Non-controlling interest
181
233
220
-22.3%
Debt
25,100
24,353
24,842
+3.1%
Other liabilities
30,655
28,950
30,227
+5.9%
Total liabilities and equity
82,637
87,872
95,377
-6.0%
Fixed assets
13,291
12,439
12,026
+6.8%
Goodwill
18,253
18,284
18,162
-0.2%
Intangible assets
13,104
14,183
17,305
-7.6%
Investments
7,132
14,531
19,242
-50.9%
Cash and equivalents
7,965
6,092
6,515
+30.7%
Receivables
7,071
6,873
7,018
+2.9%
Inventory
5,440
5,096
4,866
+6.8%
Other assets
10,381
10,374
10,243
+0.1%
Total assets
82,637
87,872
95,377
-6.0%
10-K for the year ended 31 December 2018, filed 27 February 2019: the filing.