Merck : The Largest Pharmaceutical Organization

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History of Merck Merck is among the largest pharmaceutical organization found in the United States of America. It is ranked as one of the successful medical companies in the entire world. It plays a very significant role within the entire medical industry. It was founded in the year 1891 as a subset of the parent company located in Germany. During the year 1945, the company was incorporated as a full American company through the tutelage of the United States government. Its market coverage is broad in the area of offering pharmaceutical services. It is attributed to the high investment on research and development along with competent human resource on board. Technical expertise in Merck is at a higher notch due to the effective and…show more content…
For instance, Merk acquires some of its vaccines from creditors. Therefore, the relationship between the current assets and liabilities is not evenly distributed. In other terms, it translates that there is adequate stock that can be converted into liquid cash. Profitability ratio Duration (Year) 2014 2013 2012 2011 2010 Operating margin (%) 10.54 17.82 11.71 19.30 12.31 Gross profit margin (%) 7.16 15.28 8.52 16.98 11.28 Net profit margin (%) 6.56 12.04 10.62 11.38 12.71 Adjusted return on net worth (%) 10.62 16.18 12.04 22.06 13.79 Reported return on net worth 10.69 16.32 15.48 18.22 14.29 According to the chart above, if the curve of Merck were drawn, it would show rise and fall. The trend is because of its involvement in selling of medical drugs. In the end, the company may not achieve the projected annual sales. The returns on investment fluctuate from high to low due to the varying market trends. Merck obtains supernormal profits and losses because its cost of sales may be higher. Asset management ratio It is the ratio obtained when the sales and assets of the company have been compared and contrasted. The ratios exemplify the position of the company in the market share. In that, it enables the organization to utilize available

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