Merck Historical Cash Flow
| MRK Stock | USD 101.64 1.48 1.44% |
Analysis of Merck cash flow over time is an excellent tool to project Merck Company future capital expenditures as well as to predict the amount of cash needed to cover cost of sales, R&D expenses or production expansions. Investors should almost always look for trends in cash flow indicators such as Other Non Cash Items of 12.8 B or Capital Expenditures of 2.2 B as it is a great indicator of Merck ability to facilitate future growth, repay debt on time or pay out dividends.
Financial Statement Analysis is much more than just reviewing and examining Merck Company latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Merck Company is a good buy for the upcoming year.
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About Merck Cash Flow Analysis
The Cash Flow Statement is a financial statement that shows how changes in Merck balance sheet and income statement accounts affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities. One of the most critical aspects of the cash flow statement is liquidity, which is the degree to which Merck's non-liquid assets can be easily converted into cash.
Merck Cash Flow Chart
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Free Cash Flow
The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.Begin Period Cash Flow
The amount of cash a company has at the beginning of a financial reporting period. It serves as the starting point for calculating the period's cash flow from operations, investing, and financing activities.Capital Expenditures
Capital Expenditures are funds used by Merck Company to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Merck operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in Merck Company financial statement analysis. It represents the amount of money remaining after all of Merck Company operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.Most accounts from Merck's cash flow statement are interrelated and interconnected. However, analyzing cash flow statement accounts one by one will only give a small insight into Merck Company current financial condition. On the other hand, looking into the entire matrix of cash flow statement accounts, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. At this time, Merck's Cash Flows Other Operating is quite stable compared to the past year.
Merck cash flow statement Correlations
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Merck Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Merck cash flow statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Sale Purchase Of Stock | (4.8B) | (1.3B) | (840M) | 384M | (1.3B) | (1.4B) | |
| Change To Inventory | (508M) | (855M) | (674M) | (161M) | (816M) | (775.2M) | |
| Change In Cash | 2.0B | (1.8B) | 14M | 4.6B | (5.9B) | (5.6B) | |
| Free Cash Flow | 10.0B | 5.6B | 9.7B | 14.7B | 9.1B | 6.7B | |
| Change In Working Capital | (2.1B) | (4.6B) | (3.8B) | (2.8B) | (2.2B) | (2.1B) | |
| Begin Period Cash Flow | 8.0B | 9.9B | 8.2B | 8.2B | 12.8B | 13.4B | |
| Other Cashflows From Financing Activities | 1.6B | (436M) | 8.7B | 144M | (203M) | (192.9M) | |
| Depreciation | 3.7B | 3.6B | 3.2B | 3.9B | 3.9B | 3.1B | |
| Other Non Cash Items | 2.2B | 4.3B | 1.7B | 4.5B | 12.2B | 12.8B | |
| Dividends Paid | 5.7B | 6.2B | 6.6B | 7.0B | (7.4B) | (7.1B) | |
| Capital Expenditures | 3.5B | 4.7B | 4.4B | 4.4B | 3.9B | 2.2B | |
| Total Cash From Operating Activities | 13.4B | 10.3B | 14.1B | 19.1B | 13.0B | 8.8B | |
| Net Income | 9.8B | 7.1B | 12.4B | 14.5B | 365M | 346.8M | |
| Total Cash From Financing Activities | (8.9B) | (2.8B) | 2.6B | (9.1B) | (4.8B) | (5.1B) | |
| End Period Cash Flow | 9.9B | 8.2B | 8.2B | 12.8B | 6.9B | 6.2B | |
| Stock Based Compensation | 417M | 475M | 479M | 541M | 645M | 346.8M | |
| Change To Liabilities | (1.8B) | (307M) | 626M | (504M) | (453.6M) | (476.3M) | |
| Change To Netincome | 2.1B | 1.5B | 2.8B | 2.0B | 2.3B | 2.4B | |
| Change To Account Receivables | 294M | (1.0B) | (2.0B) | (644M) | (1.1B) | (1.1B) | |
| Other Cashflows From Investing Activities | (4.6B) | (6.5B) | (13.1B) | (89M) | (80.1M) | (84.1M) | |
| Total Cashflows From Investing Activities | (2.6B) | (9.4B) | (16.6B) | (5.0B) | (14.1B) | (13.4B) | |
| Investments | 5.4B | 1.7B | 1.0B | (483M) | (15.9B) | (15.1B) | |
| Change Receivables | 294M | (1.0B) | (2.0B) | (644M) | (579.6M) | (550.6M) | |
| Net Borrowings | 1.2B | 5.0B | 1.6B | (2.3B) | (2.0B) | (1.9B) | |
| Cash And Cash Equivalents Changes | 2.0B | (2.0B) | (202M) | 5.0B | 4.5B | 4.7B | |
| Cash Flows Other Operating | (32M) | 234M | 10.2B | 14.5B | 16.6B | 17.5B | |
| Change To Operating Activities | 107M | (4.0B) | (997M) | (2.1B) | (1.9B) | (2.0B) |
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Try AI Portfolio ArchitectCheck out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.33) | Dividend Share 3.04 | Earnings Share 4.78 | Revenue Per Share 24.931 | Quarterly Revenue Growth 0.044 |
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.