Pfizer Inc (PFE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 58,496,000 | 100,330,000 | 81,288,000 | 41,651,000 | 50,108,000 |
| Property, plant and equipment | US$ in thousands | 18,940,000 | 16,274,000 | 14,882,000 | 13,745,000 | 12,969,000 |
| Fixed asset turnover | 3.09 | 6.17 | 5.46 | 3.03 | 3.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $58,496,000K ÷ $18,940,000K
= 3.09
Fixed asset turnover is a key financial ratio that measures how efficiently a company is generating revenue from its investment in fixed assets. In the case of Pfizer Inc., the fixed asset turnover ratio has fluctuated over the past five years.
In 2023, the fixed asset turnover ratio stood at 3.09, indicating that Pfizer generated $3.09 in revenue for every $1 invested in fixed assets during that year. This ratio represents a decrease from the previous year's ratio of 6.17, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
The significant drop in fixed asset turnover from 2022 to 2023 may indicate various factors such as changes in the company's business operations, pricing strategies, or changes in the composition of fixed assets. It is crucial for Pfizer to analyze the reasons behind this decline and take appropriate actions to improve the efficiency of utilizing its fixed assets in generating revenue.
While the fixed asset turnover ratio in 2023 is lower than the peak ratio of 6.17 in 2022, it is still higher than the ratios in 2020 and 2019, indicating an overall positive trend in the company's ability to generate revenue from its investment in fixed assets. Continued monitoring and analysis of this ratio will be essential for Pfizer to optimize its asset utilization and improve operational efficiency.
Peer comparison
Dec 31, 2023