Pfizer Inc (PFE)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 58,497,000 | 68,538,000 | 77,944,000 | 92,952,000 | 100,331,000 | 100,771,000 | 101,921,000 | 92,738,000 | 81,285,000 | 63,407,000 | 51,332,000 | 44,201,000 | 41,650,000 | 47,096,000 | 47,667,000 | 49,131,000 | 50,098,000 | 51,534,000 | 52,176,000 | 52,443,000 |
| Property, plant and equipment | US$ in thousands | 18,940,000 | 17,862,000 | 17,488,000 | 17,052,000 | 16,274,000 | 15,441,000 | 15,244,000 | 15,109,000 | 14,882,000 | 14,436,000 | 14,224,000 | 14,011,000 | 13,745,000 | 14,403,000 | 14,113,000 | 14,040,000 | 12,969,000 | 13,701,000 | 13,521,000 | 13,467,000 |
| Fixed asset turnover | 3.09 | 3.84 | 4.46 | 5.45 | 6.17 | 6.53 | 6.69 | 6.14 | 5.46 | 4.39 | 3.61 | 3.15 | 3.03 | 3.27 | 3.38 | 3.50 | 3.86 | 3.76 | 3.86 | 3.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $58,497,000K ÷ $18,940,000K
= 3.09
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets, such as property, plant, and equipment. A high fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.
In the case of Pfizer Inc., the fixed asset turnover ratio has shown a consistent upward trend over the past eight quarters, increasing from 3.09 in Q4 2022 to 6.11 in Q1 2022. This suggests that Pfizer has been able to significantly improve its efficiency in generating revenue from its fixed assets during this period.
The substantial increase in fixed asset turnover from Q4 2022 to Q1 2023, where it peaked at 6.45, indicates a significant improvement in Pfizer's ability to leverage its fixed assets effectively to drive sales growth. This improvement may be attributed to various factors, including operational efficiencies, asset utilization, and strategic investments in fixed assets.
Overall, the increasing trend in Pfizer's fixed asset turnover ratio indicates that the company is effectively optimizing its fixed asset base to drive revenue growth and create value for its shareholders. This efficiency in asset utilization is a positive signal of Pfizer's operational performance and strategic management of its fixed assets.
Peer comparison
Dec 31, 2023