Question: Prepare a common size Income Statements 2014-2018 for MRK and for Novartis. Comment on any significant changes you observe.  Edit

Answer: COMMON SIZE INCOME STATEMENT OF NOVRATIS

Fiscal year is January-December. All values CHF millions. 2014 2015 2016 2017 2018
Sales/Revenue 47.99B 47.6B 47.8B 48.34B 50.79B
Cost of Goods Sold (COGS) incl. D&A 15.88B 16.76B 17.26B 16.9B 18.01B
COGS excluding D&A 11.89B 11.73B 11.99B 11.78B 12.77B
Depreciation & Amortization Expense 3.99B 5.03B 5.27B 5.13B 5.24B
Depreciation 1.45B 1.42B 1.47B 1.5B 1.68B
Amortization of Intangibles 2.54B 3.62B 3.8B 3.63B 3.56B
Gross Income 32.11B 30.85B 30.54B 31.43B 32.78B
2014 2015 2016 2017 2018
SG&A Expense 21.58B 21.94B 22.55B 23.4B 24.48B
Research & Development 8.32B 8.6B 8.9B 8.83B 8.88B
Other SG&A 13.26B 13.33B 13.64B 14.57B 15.6B
Other Operating Expense (1.11B) (674.98M) (221.66M) (1.01B) (1.24B)
Unusual Expense 754.3M 510.33M 331.02M 1.28B 2.02B
EBIT after Unusual Expense 10.88B 9.07B 7.88B 7.76B 7.52B
Non Operating Income/Expense (794.58M) (863.7M) (196.05M) 690.95M 397.34M
Non-Operating Interest Income 30.21M 31.78M 42.36M 108.27M 287.73M
Equity in Affiliates (Pretax) - - - - -
Interest Expense 641.7M 666.31M 718.19M 789.38M 968.88M
Gross Interest Expense 660.01M 688.46M 727.05M 798.24M 974.75M
Interest Capitalized 18.31M 22.15M 8.87M 8.86M 5.87M
Pretax Income 9.48B 7.58B 7.01B 7.77B 7.24B
Income Tax 1.41B 1.06B 1.1B 1.28B 1.19B
Income Tax - Current Domestic 605.09M 305.23M 698.48M 454.73M 656.68M
Income Tax - Current Foreign 1.79B 1.28B 1.4B 1.57B 1.11B
Income Tax - Deferred Domestic (282.86M) 65.48M (753.65M) 293.31M (22.51M)
Income Tax - Deferred Foreign (694.8M) (589.28M) (239.4M) (1.04B) (547.07M)
Income Tax Credits - - - - -
Equity in Affiliates 1.76B 256.13M 692.57M 1.09B 6.3B
Other After Tax Income (Expense) - - - - -
Consolidated Net Income 9.82B 6.77B 6.6B 7.58B 12.34B
Minority Interest Expense 64.08M 10.59M (13.79M) - 2.94M
Net Income 9.76B 6.76B 6.61B 7.58B 12.34B
Extraordinaries & Discontinued Operations (409.19M) 10.37B - - -
Extra Items & Gain/Loss Sale Of Assets - - - - -
Cumulative Effect - Accounting Chg - - - - -
Discontinued Operations (409.19M) 10.37B - - -
Net Income After Extraordinaries 9.35B 17.12B 6.61B 7.58B 12.34B
Preferred Dividends - - - - -
Net Income Available to Common 9.35B 17.12B 6.61B 7.58B 12.34B
EPS (Basic) 3.85 7.13 2.78 3.23 5.32
Basic Shares Outstanding 2.43B 2.4B 2.38B 2.35B 2.32B
EPS (Diluted) 3.78 7.02 2.76 3.20 5.27
Diluted Shares Outstanding 2.47B 2.44B 2.4B 2.37B 2.34B
EBITDA 15.63B 14.62B 13.48B 14.17B 14.78B




Merck & Co. Inc., Common-Size Consolidated Income Statement

12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales -31.94% -31.84% -34.90% -37.81% -39.70%
Gross margin 68.06% 68.16% 65.10% 62.19% 60.30%
Selling, general and administrative -23.89% -24.50% -24.52% -26.11% -27.48%
Research and development -23.06% -25.44% -25.43% -16.97% -17.00%
Restructuring costs -1.49% -1.93% -1.64% -1.57% -2.40%
Operating income 19.62% 16.28% 13.51% 17.54% 13.42%
Interest income 0.81% 0.96% 0.82% 0.73% 0.63%
Interest expense -1.83% -1.88% -1.74% -1.70% -1.73%
Exchange gains (losses) -0.34% 0.03% -0.44% -3.23% -0.43%
Income on investments in equity securities, net 0.77% 0.88% 0.11% 0.52% 0.61%
Net periodic defined benefit plan credit other than service cost 1.21% – – – –
Other, net 0.33% -0.01% -0.56% -0.18% 28.42%
Other income (expense), net 0.95% -0.03% -1.81% -3.87% 27.49%
Income before taxes 20.57% 16.25% 11.70% 13.67% 40.92%
Taxes on income -5.93% -10.23% -1.80% -2.38% -12.66%
Net income 14.64% 6.03% 9.90% 11.29% 28.25%
Net (income) loss attributable to noncontrolling interests 0.06% -0.06% -0.05% -0.04% -0.03%
Net income attributable to Merck & Co., Inc. 14.71% 5.97% 9.85% 11.25% 28.22%

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