Merck KGaA (Merck KGaA) Debt-to-Equity

: 0.37 (As of Dec. 2023)

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Merck KGaA's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $682 Mil. Merck KGaA's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $10,075 Mil. Merck KGaA's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $29,095 Mil. Merck KGaA's debt to equity for the quarter that ended in Dec. 2023 was 0.37.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Merck KGaA's Debt-to-Equity or its related term are showing as below:

MKKGY' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.37 Med: 0.61 Max: 1.06
Current: 0.37

During the past 13 years, the highest Debt-to-Equity Ratio of Merck KGaA was 1.06. The lowest was 0.37. And the median was 0.61.

MKKGY's Debt-to-Equity is ranked worse than
57.14% of 854 companies
in the Drug Manufacturers industry
Industry Median: 0.29 vs MKKGY: 0.37

Merck KGaA Debt-to-Equity Historical Data

The historical data trend for Merck KGaA's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Merck KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.74

0.71

0.51

0.40

0.37

Merck KGaA Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity																0.40	0.41	0.42	0.39	0.37

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Merck KGaA Debt-to-Equity Distribution

For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Merck KGaA's Debt-to-Equity falls into.

Merck KGaA Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Merck KGaA's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(681.57	+	10075.245)	/	29094.875
	=	0.37

Merck KGaA's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(681.57	+	10075.245)	/	29094.875
	=	0.37

Merck KGaA (OTCPK:MKKGY) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Merck KGaA Debt-to-Equity Related Terms

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Merck KGaA (Merck KGaA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (OTCPK:MKKGY) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

MKGAF:USA MRK:Italy MRKd:UK 0O14:UK MRK:Germany MRCK:Austria

Address

Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293

Website

https://www.emdgroup.com

Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.