Merck & Co. Tax Credit Carryforward Valuation Allowance increased by 16.1% to $824.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 16.1%, from $710.00M to $824.00M. Over 5 years (FY 2020 to FY 2025), Tax Credit Carryforward Valuation Allowance shows an upward trend with a 13.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
An increase in the allowance signals management's reduced confidence in generating future taxable income to offset these credits.
This is a contra-asset account that reduces the value of deferred tax assets related to tax credits when it is more like...
Common in capital-intensive industries where tax credits are heavily utilized; peers with stable earnings typically have lower allowances.
tax_credit_carryforward_valuation_allowance| Q4 '21 | Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|---|
| Value | $287.00M | $599.00M | $656.00M | $710.00M | $824.00M |
| QoQ Change | — | +108.7% | +9.5% | +8.2% | +16.1% |
| YoY Change | — | +108.7% | +9.5% | +8.2% | +16.1% |
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