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Merck & Co. MRK Return on invested capital

Return on invested capital at other companies

Bristol-Myers Squibb logo
Bristol-Myers SquibbBMY
13%+4.2pp
Pfizer logo
PfizerPFE
6%
Johnson & Johnson logo
Johnson & JohnsonJNJ
20.6%+0.3pp
Regeneron Pharmaceuticals logo
Regeneron PharmaceuticalsREGN
10.3%-2.0pp
Revolution Medicines, Inc. logo
Revolution Medicines, Inc.RVMD
-89.6%+1,237pp
Amgen logo
AmgenAMGN
14.1%+4.0pp

Other financials

Income statement

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Revenue$16.3B+4.9%
Gross profit$12.1B-0.2%
Net income-$4.2B-183%
EPS (diluted)-$1.72-186%

Balance sheet

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Cash & equivalents$5.4B-38.2%
Total debt$49.1B+35.8%
Total equity$45.9B-5.1%
Total assets$128.69B+11.8%

Cash flow

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Operating cash flow$3.9B+56.7%
CapEx$991.0M-25.4%
Free cash flow$2.9B+150%

Valuation

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Market cap$285.12B+31.2%
Enterprise value$328.82B+34.2%
P/E31.9×+19.4×
P/S4.3×+0.9×

Profitability

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Gross margin73.9%-2.5pp
Net margin13.6%-13.7pp

Returns & leverage

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Return on equity19%-20.3pp
Debt / equity1.1×+0.3×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Merck & Co.’s reported figures.

Based on trailing twelve months.

The official record: Merck & Co.’s 10-Q, filed May 4, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Merck & Co.'s return on invested capital?
Merck & Co. (MRK) reported return on invested capital of 10.8% in Q1 2026.
How has Merck & Co.'s return on invested capital changed year-over-year?
Merck & Co.'s return on invested capital decreased by 54.3% year-over-year, from 23.6% to 10.8%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.