Question 1 : Examine the profitability of the company on both the income stateme
Question 1 : Examine the profitability of the company on both the income statement and profitability ratios. Is the company becoming more or less profitable? Is anything specific happening at the company directly to explain the change?
Question 2 : Look at the liguidity ratios – is the company becoming more or less liquid? How can you tell? Why does the days inventory held ratio seem so high?
Question 3 : Examine the capital structure of Merck over the last five years. Is the company becoming more or less leveraged? Are they able to service their debt? (How can you tell?)
Question 4: Merck went through a major acquisition in 2021. What company did they purchase and what was the change to Goodwill and cash flow? Was this a successful transaction?
Question 5 : Examine the market ratios and other information at the bottom of the Ratios tab.
Compare the market value of the company to its book value. Is the company doing well in the market? If you invested in this company in 2018, would you be pleased with your investment in 2022?
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