Aureus
AExcellent

Merck & Company, Inc.(MRK)

A

Financial data as of Dec 31, 2025Improving · Healthcare

FCF Margin17.8%Free Cash Flow / Revenue
Cash Conversion90.2%Operating CF / Net Income
Free Cash Flow$12.4B
Revenue$65.0B
Net Cash-$34.8BNet debt position
Debt / FCF4.3xElevated debt burden
Current Ratio1.54Adequate short-term liquidity
YoY FCF Growth+80.7%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (17.8%, 4.3x)
→
+1Strong YoY FCF growth (80.7% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.8%)
  • Strong YoY FCF growth (+80.7%)

Concerns

  • Net debt position ($34.8B) — 4.3x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.8%
Net Margin28.1%
Operating CF Margin25.3%
CapEx Ratio6.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$34.8BNet debt position
Debt / FCF4.3xElevated debt burden
Current Ratio1.54Strong liquidity
Debt / Equity0.94Low leverage

Quarterly FCF Trend

+80.7% YoYImproving (+80.7%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameMerck & Company, Inc.
SectorHealthcare
Free Cash Flow$12.4B
Revenue$65.0B
Net Income$18.3B
Operating Cash Flow$16.5B
Capital Expenditure$4.1B
FCF Margin17.8%
Cash Conversion Rate90.2%
Net Margin28.1%
Total Debt$49.3B
Total Cash$14.6B
Net Cash-$34.8B
Current Ratio1.54
Debt / Equity0.94
Debt / FCF4.3x
YoY FCF Growth+80.7%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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