Anlisis Financiero

Merck & Co Inc. (MRK) Income Statement

Fiscal year ends in December. USD in millions except per share data.
2,006 2,007 2,008
Revenue 22,636 24,198 23,850
Cost of revenue 6,001 6,141 5,582
Gross profit 16,635 18,057 18,268
Operating expenses
Research and development 4,784 4,883 4,805
Sales, General and administrative 8,165 7,557 7,377
Restructuring, merger and acquisition 142 327 1,032
Total operating expenses 13,091 12,767 13,214
Operating income 3,544 5,290 5,053

Interest Expense 375 384 251

Other income (expense) 3,053 -1,535 5,006
Income before taxes 6,222 3,371 9,808
Provision for income taxes 1,788 96 1,999
Other income
Net income 4,434 3,275 7,808

Merck & Co Inc. (MRK) Balance Sheet

Fiscal year ends in December. USD in millions except per share data.
Assets 2,006 2,007 2,008
Current assets

Cash and cash equivalents 5,915 5,336 4,368

Short-term investments 2,798 2,895 1,118
Total cash 8,713 8,231 5,486
Receivables 3,315 3,636 3,779
Inventories 1,769 1,881 2,283
Deferred income taxes 7,756
Prepaid expenses 1,433 1,297
Total current assets 15,230 15,045 19,304
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 24,210 24,803 24,128
Accumulated Depreciation -11,015 -12,457 -12,129
Net property, plant and equipment 13,195 12,346 11,999
Equity and other investments
Goodwill 1,432 1,455 1,439
Intangible assets 944 713 525
Other long-term assets 13,770 18,791 13,927
Total non-current assets 29,341 33,305 27,890
Total assets 44,571 48,350 47,194
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1,285 1,824 2,297
Accounts payable 497 624 618
Taxes payable
Accrued liabilities 6,653 8,535 9,174
Other current liabilities 4,288 1,275 2,230
Total current liabilities 12,723 12,258 14,319
Non-current liabilities
Long-term debt 5,551 3,916 3,943
Deferred taxes liabilities 6,330 11,585 7,767
Minority interest 2,406 2,407 2,409
Total non-current liabilities 14,287 17,908 14,119
Total liabilities 27,010 30,166 28,438

Stockholders' equity
Common stock 30 30 30
Additional paid-in capital 7,166 8,015 8,319
Retained earnings 39,096 39,140 43,697
Treasury stock -27,567 -28,175 -30,736
Accumulated other comprehensive income -1,164 -826 -2,554
Total stockholders' equity 17,561 18,184 18,756
Total liabilities and stockholders' equity 44,571 48,350 47,194

Financial ratios

1. Mrgenes

Gross Margin
Operating Margin
Net Margin

2. Liquidez

Current ratio
Quick ratio

3. Endeudamiento
Debt / Total Assets
Debt / Equity
4. Rentabilidades

Return on Equity, ROE

Return on Debt, RD
Return on Invested Capital, ROIC

5. Rotaciones

Inventory Turnover
Accounts Receivables Turnover
Total Assets Turnover

6. Mercado

# shares (Millions) 3,161 3,161 3,161

Earnings per share (EPS)
Price / Earnings
Florencia Roca, 2011

2,009 2,010
27,428 45,987
9,019 18,396
18,409 27,591

5,845 10,991
8,543 13,245
1,634 985
16,022 25,221
2,387 2,370

458 715
13,363 -2
15,292 1,653
2,268 671
-123 -121
12,901 861

2,009 2,010

9,311 10,900
293 1,301
9,604 12,201
6,603 7,344
8,055 5,868
4,166 3,651

28,428 29,064

30,868 30,563
-12,595 -13,481
18,273 17,082
432 2,175
11,923 12,378
47,656 39,456
 5,376 5,626
83,660 76,717
112,088 105,781
 1,379 2,400
2,237 2,308
1,285 1,243
9,454 8,514
1,396 1,176
15,751 15,641

16,075 15,482
18,772 17,853
2,435 2,429
37,282 35,764
53,033 51,405

1,781 1,788
39,683 40,701
41,401 37,536
-21,044 -22,433
-2,766 -3,216
59,055 54,376
112,088 105,781
3,161 3,161
 Merck & Co., Inc.
14,000
12,000
10,000
8,000

$ Millions 6,000
4,000
2,000
-
2,006 Net income
2,007 Operating income
2,008
2,009
2,010

Merck & Co., Inc.

100%
90% Total non-current assets
80% Prepaid expenses
70% Deferred income taxes
60% Inventories
50%
Receivables
40%
Total cash
30%
20%
10%
0%
2,006 2,007 2,008 2,009 2,010
 Mrgenes
Merck & Co.
1200%

1000% Gross Margin

800% Operating Margin
Net Margin
600%

400%

200%

0%
2,006 2,007 2,008 2,009 2,010
ome
g income

Co., Inc.

nt assets
es
e taxes
 Mrgenes
Merck & Co.

Gross Margin
Operating Margin
Net Margin
 Merck & Co., Inc. MRK
Balance Sheet, $Mil
Assets 2,009 2,010

Total cash 9,604 12,201

Receivables 6,603 7,344
Inventories 8,055 5,868
Deferred income taxes
Prepaid expenses
4,166 3,651 + lquido
Total current assets 28,428 29,064

Net property, plant and equipment 18,273 17,082

Equity and other investments 432 2,175
Goodwill
Intangible assets
11,923
47,656
12,378
39,456
- lquido
Other long-term assets 5,376 5,626
Total non-current assets 83,660 76,717
Total assets 112,088 105,781
Liabilities and stockholders' equity Florencia Roca, 2011
Liabilities
Current liabilities
Short-term debt 1,379 2,400
Accounts payable 2,237 2,308
Taxes payable 1,285 1,243
Accrued liabilities 9,454 8,514
Other current liabilities
Total current liabilities
1,396
15,751
1,176
15,641 +
Non-current liabilities
Long-term debt 16,075 15,482 exigible
Deferred taxes liabilities 18,772 17,853
Minority interest 2,435 2,429
Total non-current liabilities 37,282 35,764
Total liabilities 53,033 51,405
- exigible
Total stockholders' equity 59,055 54,376
Total liabilities and stockhold 112,088 105,781
 E. Resultados
variables de flujo

Balance
variables de stock
 Merck & Co., Inc. MRK
Balance Sheet, $Mil
Assets 2,009 2,010 2,009
Liquidez Corriente 1.80
Total cash 9,604 12,201
Receivables 6,603 7,344 Activo Corrien
Inventories 8,055 5,868 Liquidez Corriente
Deferred income taxes 4,166 3,651 Pasivo Corrien
Prepaid expenses
Total current assets 28,428 29,064

Net property, plant and equipment 18,273 17,082

Equity and other investments 432 2,175
Goodwill 11,923 12,378
Intangible assets 47,656 39,456
Other long-term assets 5,376 5,626
Total non-current assets 83,660 76,717
Total assets 112,088 105,781

Liabilities
Current liabilities
Short-term debt 1,379 2,400
Accounts payable 2,237 2,308
Taxes payable 1,285 1,243
Accrued liabilities 9,454 8,514
Other current liabilities 1,396 1,176
Total current liabilities 15,751 15,641
Non-current liabilities
Long-term debt 16,075 15,482
Deferred taxes liabilities 18,772 17,853
Minority interest 2,435 2,429
Total non-current liabilities 37,282 35,764
Total liabilities 53,033 51,405

Total stockholders' equity 59,055 54,376

Total liabilities and stockholders' equity 112,088 105,781
 Florencia Roca, 2011

2,010 Frmulas columna G

1.86 =+C10/C27

Activo Corriente
ente
Pasivo Corriente
 Merck & Co., Inc. MRK
Balance Sheet, $Mil
Assets 2,009 2,010 2,009
Debt / Assets 0.47
Total cash 9,604 12,201
Receivables 6,603 7,344 Debt / Equity 0.90
Inventories 8,055 5,868
Deferred income taxes 4,166 3,651
Prepaid expenses
Total current assets 28,428 29,064

Net property, plant and equipment 18,273 17,082

Equity and other investments 432 2,175
Goodwill 11,923 12,378
A
Intangible assets 47,656 39,456
Other long-term assets 5,376 5,626
Total non-current assets 83,660 76,717
Total assets 112,088 105,781
Deuda
Liabilities LeverageA
Current liabilities Equity
Short-term debt 1,379 2,400
Accounts payable 2,237 2,308
Taxes payable 1,285 1,243 Deuda
Accrued liabilities 9,454 8,514 LeverageB
Activo Total
Other current liabilities 1,396 1,176
Total current liabilities 15,751 15,641
Non-current liabilities
Long-term debt 16,075 15,482
Deferred taxes liabilities 18,772 17,853
Minority interest 2,435 2,429
Total non-current liabilities 37,282 35,764
Total liabilities 53,033 51,405

Total stockholders' equity 59,055 54,376

Total liabilities and stockholders' equity 112,088 105,781
Fuente: Elaboracin propia en base a datos de www.damodaran.com (enero de 2011
 Florencia Roca, 2011

2,010 Frmulas columna G

0.49 =+C33/C18

0.95 =+C33/C35

D
A
E

Deuda
geA
Equity

Deuda
geB
Activo Total
modaran.com (enero de 2011)
Merck & Co., Inc. MRK
Income Statement, $Mil
2,009 2,010 2,009
Revenue 27,428 45,987
COGS 9,019 18,396 Margen Bruto 67.1%
Gross Profit 18,409 27,591 Margen Operativo 8.7%
Margen Neto 47.0%
Research and development 5,845 10,991
Sales, General and administrative 8,543 13,245
Restructuring, merger and acquisition 1,634 985
Operating Income 2,387 2,370
G
Margen Operativo
Interest Expense 458 715
Other income (expense) 13,363 -2
Earnings Before Taxes 15,292 1,653
Income Taxes 2,268 671
Other income -123 -121
Net Income 12,901 861

Fuente: Elaboracin propia en base a datos de www.damodaran.com (enero de 2011)

 Florencia Roca, 2011

2,010 Frmulas columna G

60.0% =+C7/C5
5.2% =+C12/C5
1.9% =+C19/C5

Ganancia Bruta
Margen Bruto
Ventas
Ganancia Operativa
Margen Operativo
Ventas
Ganancia Neta
Margen Neto
Ventas

modaran.com (enero de 2011)

tax -1% -7%

Merck & Co., Inc. MRK
Balance Sheet, $Mil
2,009 2,010 2,009
Assets Rotacin Accts Rec 4.15
Total cash 9,604 12,201 Rotacin de Inventarios 3.41
Receivables 6,603 7,344 Rotacin de Activos Totales 0.24
Inventories 8,055 5,868
Deferred income taxes 4,166 3,651
Prepaid expenses
Total Current Assets 28,428 29,064
Net property, plant and equipment 18,273 17,082
Equity and other investments 432 2,175 Rotacin de Cuentas por Cobra
Goodwill 11,923 12,378
Intangible assets 47,656 39,456
Other long-term assets 5,376 5,626
Total Assets 112,088 105,781 Rotacin de In

Income Statement, $Mil

Revenue 27,428 45,987
COGS 9,019 18,396 Rotacin de Activos To
Gross Profit 18,409 27,591

Research and development 5,845 10,991

Sales, General and administrative 8,543 13,245
Restructuring, merger and acquisition 1,634 985
Operating Income 2,387 2,370
 Florencia Roca, 2011

2,010 Frmulas columna G

6.26 =+C20/C7
7.84 =+C20/C8
0.43 =+C20/C17

Ventas
Cuentas por Cobrar
Cuentas por Cobrar

Ventas
Rotacin de Inventarios
Inventarios

Ventas
acin de Activos Totales
Activos Totales
Merck & Co., Inc. MRK
Balance Sheet, $Mil
2,009 2,010 2,009
Total Assets 48,351 47,196 RD 2.6%
Total Current Liabilities 12,258 14,319 ROE 70.9%
Total Long-Term Liabilities 17,908 14,119 ROIC 4.2%
Total Equity 18,185 18,758
Total Liabilities & Equity 48,351 47,196 Balance:

D
Income Statement, $Mil
Revenue 27,428 45,987 A
COGS 9,019 18,396
Gross Profit 18,409 27,591 E
Research and development 5,845 10,991
Sales, General and administrative 8,543 13,245
Restructuring, merger and acquisition 1,634 985
Operating Income 2,387 2,370
Interest Expense 458 715 Intereses
Other income (expense) 13,363 -2 RD
Deuda de Largo Plazo
Earnings Before Taxes 15,292 1,653
Income Taxes 2,268 671 Ganancia Opera
Other Income -123 -121 ROIC
Net Income 12,901 861 Capita
 Florencia Roca, 2011

2,010 Frmulas columna G

5.1% =+C22/C7
4.6% =+C27/C8
3.0% =+(C21*(1-(C25/C24))/C5)

Estado de Resultados:

Ventas
- Gastos Operativos
=
= Ganancia
Ganancia Operativa
Operativa
-- Intereses
Intereses
- Impuestos
= Ganancia
= Ganancia Neta
Neta

ereses Ganancia Neta

ROE
Largo Plazo Equity
Ganancia Operativa (1 - t)
ROIC
Capital