Total assets of Merck as of December 31, 2008 were € 15,645 million. This corresponds to an increase of € 722 million, or 4.8%, as compared with December 31, 2007. The higher level of working capital was mainly responsible for this development. The equity ratio increased from 58.2% to 61.1%. This was due to both the improved profit after tax in 2008 as well as currency effects. Net equity increased by a total of € 875 million. In particular, the high level of Serono assets disclosed in the balance sheet after measurement in Swiss francs increased owing to currency effects as the Swiss franc strengthened considerably toward the end of 2008.
On December 31, 2008, net debt, defined as financial liabilities less cash, amounted to € 477 million, as compared with € 355 million on December 31, 2007. At 0.17, gearing (ratio of net debt and pension provisions to net equity) remained at a very low level (2007: 0.18).