MRK  Merck & Company Inc.

Exchange

NYSE

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

171.13B

Satisfactory Cash Return on Invested Capital over the past 5 years

MRK has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely MRK could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

MRK has created $12.83 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 8.07B 10.11B 5.54B 11.14B 8.76B
divided by
Invested Capital 71.64B 70.29B 63.85B 69.15B 63.83B
Cash ROIC 11.26% 14.38% 8.68% 16.11% 13.73%

Inconsistent Return on Equity over the past 5 years

MRK has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

MRK has generated $13.06 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 6.30B 4.52B 11.93B 4.46B 3.94B
divided by
Stockholders' Equity 53.02B 49.77B 48.65B 44.68B 40.09B
Return on Equity 11.88% 9.08% 24.53% 9.98% 9.83%

Excellent Business Performance over the past 10 years

MRK has been able to maintain profitability in good times and bad. This could mean MRK has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MRK has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 5.99B 5.27B 1.93B 9.14B 10.66B 8.07B 10.11B 5.54B 11.14B 8.76B