Pfizer Inc (PFE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.51 | 2.91 | 3.82 | 3.40 | 1.08 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 8.64 | — | 11.00 | 4.78 | 4.58 |
Based on the provided data for Pfizer Inc, let's analyze the activity ratios:
1. Inventory Turnover:
- In December 2020, the inventory turnover ratio was 1.08, indicating that Pfizer turned over its inventory approximately once during the year.
- The ratio improved significantly to 3.40 by December 2021 and continued to increase to 3.82 by December 2022, suggesting better management of inventory levels.
- However, there was a slight decline in the ratio to 2.91 by December 2023, followed by a significant drop to 1.51 by December 2024, which may raise concerns about inventory management efficiency.
2. Receivables Turnover:
- There is no data provided for the receivables turnover ratio for any of the years, indicating that information on how quickly Pfizer collects its receivables is not available.
3. Payables Turnover:
- Similar to the receivables turnover, there is no data available for the payables turnover ratio, indicating a lack of insight into how quickly Pfizer pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company uses its working capital to generate sales.
- Pfizer's working capital turnover ratio was 4.58 in December 2020, which improved slightly to 4.78 by December 2021.
- There was a notable increase to 11.00 by December 2022, indicating that Pfizer efficiently utilized its working capital to drive sales.
- However, data for December 2023 is not available, and the ratio was 8.64 by December 2024, showing a decrease from the peak in 2022 but still reflecting relatively effective utilization of working capital.
Overall, the inventory turnover ratios show fluctuations over the years, with improvements followed by a decline in recent years. The lack of data for receivables and payables turnover ratios limits the comprehensive analysis of Pfizer's efficiency in managing receivables and payables. The working capital turnover ratio indicates varying levels of efficiency in utilizing working capital to generate sales over the analyzed years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 241.21 | 125.27 | 95.45 | 107.28 | 337.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Pfizer Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the years. The company significantly reduced its inventory holding period from 337.87 days as of December 31, 2020, to 95.45 days as of December 31, 2022, indicating better inventory management. However, there was a slight increase reported for the DOH as of December 31, 2023, followed by a significant jump to 241.21 days by December 31, 2024, which might raise concerns about potential excess inventory levels.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data were not provided, making it difficult to assess Pfizer's efficiency in collecting receivables and managing payables. Additional information on these ratios would be necessary to gain a comprehensive understanding of Pfizer's working capital management.
Overall, based on the available data, Pfizer appears to have made improvements in managing its inventory efficiently, but a complete analysis of the working capital cycle would require a more detailed look at its receivables and payables turnover.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 3.09 | 6.17 | 5.46 | 3.01 |
| Total asset turnover | 0.30 | 0.26 | 0.51 | 0.45 | 0.27 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets over an extended period. For Pfizer Inc, the fixed asset turnover ratio has shown a fluctuating trend over the years. It improved significantly from 2020 to 2022, indicating that the company was able to generate more revenue relative to its fixed assets during this period. However, there was a decline in 2023, followed by incomplete data for 2024.
In contrast, the total asset turnover ratio also experienced fluctuations but remained relatively low compared to the fixed asset turnover. This suggests that Pfizer may not be generating as much revenue relative to its total assets compared to its fixed assets. Further analysis would be needed to understand the drivers behind these changes and whether they align with Pfizer's long-term strategic goals.