FIN 560 Securities Analysis Project Essay

Words: 1530
Pages: 7

MERCK & CO.
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ABSTRACT

The purpose of this paper is to research, analyze and whether to recommend Merck & Co. to potential investors. I will be using both qualitative and quantitative analysis based on previous years of data for the company. I will provide efficient background information (life cycle analysis) including a brief history of Merck & Co., it’s stock chart since being added to the market, any advantages or disadvantages it has within its industry and important news that may affect a potential investor’s willingness to buy or sell this stock.

I will provide data and information regarding the Return on Equity (ROE), which shows growth of
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It demonstrates a company's ability to generate profits from shareholders' equity (also known as net assets or assets minus liabilities).

ROE shows how well a company uses investment funds to generate growth. Return on equity is useful for comparing the profitability of companies within a sector or industry.

Investors generally are interested in company's that have high, increasing returns on equity.

Based on the last 4 Quarters:

30-Jun
31-Mar
31-Dec
30-Sep
Total
Net Income $906,000 $1,593,000 $907,000 $1,730,000 $5,136,000

Equity $47,500,000 $53,029,000 $53,020,000 $55,747,000 $209,296,000

ROE
9.82%

ROE for this Date Range: June 30, 2013 9.71%
March 31, 2013 11.08%
Dec. 31, 2012 11.28%
Sept. 30, 2012 12.29%
June 30, 2012 2.24%
March 31, 2012 12.69%
Dec. 31, 2011 11.45%
Sept. 30, 2011 7.69%
June 30, 2011 5.23%
March 31, 2011 2.89%
Dec. 31, 2010 1.53%
Sept. 30, 2010 15.73%
June 30, 2010 25.46%
March 31, 2010 32.75%
Dec. 31, 2009 45.87%
Sept. 30, 2009 39.80%
June 30, 2009 29.04%
March 31, 2009 30.36%