Marsh & McLennan Companies (MRSH) FY2019 results: revenue $16.7 billion, up 11.4% on the year
Marsh & McLennan Companies, Inc. (MRSH) reported revenue of $16.7 billion for fiscal 2019, the year ended 31 December 2019, up 11.4% on the year before. Net income was $1.7 billion, up 5.6%, and diluted earnings per share $3.41. The figures are the company's own, from the 10-K it filed with the SEC on 20 February 2020.
Revenue
$16.7 billion
+11.4% on the year
FY2016FY2019
Operating margin
16.1%
18.5% a year earlier
FY2016FY2019
Net income
$1.7 billion
+5.6% on the year
FY2016FY2019
Diluted EPS
$3.41
+5.6% on the year
FY2016FY2019
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
16,652
14,950
14,024
+11.4%
Operating income
2,677
2,761
2,655
-3.0%
Operating margin
16.1%
18.5%
18.9%
Interest expense
524
290
237
+80.7%
Pre-tax income
2,439
2,244
2,643
+8.7%
Income tax
666
574
1,133
+16.0%
Effective tax rate
27.3%
25.6%
42.9%
Net income
1,742
1,650
1,492
+5.6%
Net margin
10.5%
11.0%
10.6%
Diluted EPS
$3.41
$3.23
$2.87
+5.6%
$ 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
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
2,361
2,428
1,893
-2.8%
Capital expenditure
421
314
302
+34.1%
Free cash flow
1,940
2,114
1,591
-8.2%
Free cash flow margin
11.7%
14.1%
11.3%
Cash from investing
-4,395
-1,089
-956
Cash from financing
4,331
-1,310
-1,009
Depreciation and amortisation
647
494
481
+31.0%
Share-based compensation
252
193
149
+30.6%
Buybacks
485
675
900
-28.1%
Dividends paid
890
807
740
+10.3%
Diluted shares, weighted
511m
511m
519m
0.0%
Shares outstanding at period end
504m
504m
509m
0.0%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
7,943
7,584
7,442
+4.7%
Short-term borrowings
1,215
314
n/a
+286.9%
Debt
11,956
5,824
5,225
+105.3%
Operating lease liabilities
1,926
0.0
n/a
Other liabilities
8,317
7,856
7,762
+5.9%
Total liabilities and equity
31,357
21,578
20,429
+45.3%
Fixed assets
858
701
712
+22.4%
Goodwill
14,671
9,599
9,089
+52.8%
Intangible assets
2,774
1,437
1,274
+93.0%
Trading assets
n/a
n/a
81.0
Cash and equivalents
1,155
1,066
1,205
+8.3%
Receivables
5,236
4,317
4,133
+21.3%
Other assets
6,663
4,458
3,935
+49.5%
Total assets
31,357
21,578
20,429
+45.3%
10-K for the year ended 31 December 2019, filed 20 February 2020: the filing.