Merck (MRK) FY2019 results: revenue $39.1 billion, down 7.5% on the year
Merck & Co., Inc. (MRK) reported revenue of $39.1 billion for fiscal 2019, the year ended 31 December 2019, down 7.5% on the year before. Net income was $9.8 billion, up 58.2%, and diluted earnings per share $3.81. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2020.
Revenue
$39.1 billion
-7.5% on the year
FY2012FY2019
Operating margin
n/a
FY2012FY2019
Net income
$9.8 billion
+58.2% on the year
FY2012FY2019
Diluted EPS
$3.81
+64.2% on the year
FY2012FY2019
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Revenue
39,121
42,294
40,122
-7.5%
Cost of revenue
12,016
13,509
12,912
-11.1%
Gross profit
27,105
28,785
27,210
-5.8%
Gross margin
69.3%
68.1%
67.8%
Research and development
9,724
9,752
10,339
-0.3%
Selling, general and administrative
9,455
10,102
10,074
-6.4%
Interest expense
893
772
754
+15.7%
Pre-tax income
7,171
8,701
6,521
-17.6%
Income tax
1,565
2,508
4,103
-37.6%
Effective tax rate
21.8%
28.8%
62.9%
Net income
9,843
6,220
2,394
+58.2%
Net margin
25.2%
14.7%
6.0%
Diluted EPS
$3.81
$2.32
$0.87
+64.2%
$ 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
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
13,440
10,922
6,447
+23.1%
Capital expenditure
3,369
2,615
1,888
+28.8%
Free cash flow
10,071
8,307
4,559
+21.2%
Free cash flow margin
25.7%
19.6%
11.4%
Cash from investing
-2,629
4,314
2,679
Cash from financing
-8,861
-13,160
-10,006
Depreciation and amortisation
3,652
4,519
4,676
-19.2%
Share-based compensation
388
348
312
+11.5%
Buybacks
4,780
9,091
4,014
-47.4%
Dividends paid
5,695
5,172
5,167
+10.1%
Dividend per share
$2.26
$1.99
$1.89
+13.6%
Diluted shares, weighted
2,580m
2,679m
2,748m
-3.7%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
25,907
26,701
34,336
-3.0%
Non-controlling interest
94.0
181
233
-48.1%
Debt
26,300
25,100
24,353
+4.8%
Operating lease liabilities
768
n/a
n/a
Other liabilities
31,328
30,655
28,950
+2.2%
Total liabilities and equity
84,397
82,637
87,872
+2.1%
Fixed assets
14,297
13,291
12,439
+7.6%
Goodwill
18,069
18,253
18,284
-1.0%
Intangible assets
14,196
13,104
14,183
+8.3%
Investments
2,243
7,132
14,531
-68.6%
Cash and equivalents
9,676
7,965
6,092
+21.5%
Receivables
6,778
7,071
6,873
-4.1%
Inventory
5,978
5,440
5,096
+9.9%
Other assets
13,160
10,381
10,374
+26.8%
Total assets
84,397
82,637
87,872
+2.1%
10-K for the year ended 31 December 2019, filed 26 February 2020: the filing.