Pfizer Inc (PFE)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 43,644,000 | 43,757,000 | 40,697,000 | 45,989,000 | 52,421,000 | 50,999,000 | 53,797,000 | 51,334,000 | 45,545,000 | 33,762,000 | 27,919,000 | 23,792,000 | 22,352,000 | 27,436,000 | 27,105,000 | 27,482,000 | 28,160,000 | 29,002,000 | 29,036,000 | 29,563,000 |
| Payables | US$ in thousands | 6,710,000 | 5,338,000 | 6,081,000 | 6,123,000 | 6,809,000 | 6,267,000 | 6,208,000 | 5,506,000 | 5,578,000 | 4,698,000 | 4,327,000 | 4,064,000 | 4,283,000 | 4,141,000 | 3,872,000 | 3,972,000 | 3,887,000 | 3,942,000 | 4,002,000 | 4,156,000 |
| Payables turnover | 6.50 | 8.20 | 6.69 | 7.51 | 7.70 | 8.14 | 8.67 | 9.32 | 8.17 | 7.19 | 6.45 | 5.85 | 5.22 | 6.63 | 7.00 | 6.92 | 7.24 | 7.36 | 7.26 | 7.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $43,644,000K ÷ $6,710,000K
= 6.50
The payables turnover ratio for Pfizer Inc. has shown some fluctuation over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers within a specific period.
In Q4 2023, the payables turnover ratio was 3.72, showing a decrease from the previous quarter. This could imply that Pfizer took longer to pay off its suppliers compared to Q3 2023 when the ratio was 5.07.
Looking at the trend over the past year, the payables turnover ratio has generally decreased from Q2 2022 to Q4 2023. This decline could suggest that Pfizer has been taking longer to pay its suppliers over this period.
A lower payables turnover ratio may indicate that the company is taking longer to pay its bills, which could be beneficial in the short term for cash flow management but could strain relationships with suppliers in the long run. It is essential for Pfizer to monitor and manage its payables turnover ratio effectively to maintain healthy cash flow and supplier relationships.
Peer comparison
Dec 31, 2023