Pfizer Inc (PFE)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.28	4.29	3.95	4.82	5.84	5.36	5.15	5.14	5.03	3.91	3.12	2.80	2.79	2.95	3.16	3.26	3.98	3.53	3.53	3.68
Receivables turnover	5.23	6.18	7.62	—	9.16	—	—	—	7.08	—	—	—	—	—	—	—	—	—	—	—
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
Working capital turnover	—	1.60	2.01	6.88	11.00	3.86	5.08	6.12	4.78	3.94	3.90	3.43	4.55	3.47	3.48	57.94	—	—	3.47	3.31

Activity ratios provide insights into how effectively a company manages its assets and liabilities to generate sales revenue. Let's analyze the activity ratios of Pfizer Inc. based on the provided data.

1. Inventory turnover: Pfizer's inventory turnover has been gradually decreasing from Q1 2023 to Q4 2023, indicating that the company is holding onto its inventory for a longer period before turning it into sales. A lower inventory turnover may suggest potential issues such as overstocking or lower demands for its products.

2. Receivables turnover: Pfizer's receivables turnover has fluctuated over the quarters but generally shows a decreasing trend. This indicates that Pfizer is taking longer to collect payments from its customers, potentially affecting its cash flow and liquidity. A lower receivables turnover could imply challenges in managing credit sales or an increase in bad debts.

3. Payables turnover: Pfizer's payables turnover has also fluctuated over the quarters, with a slight decrease overall. A lower payables turnover may indicate that Pfizer is taking longer to pay its suppliers, which could impact relationships with vendors or signal potential cash flow constraints.

4. Working capital turnover: The working capital turnover for Pfizer shows a declining trend from Q1 2022 to Q1 2023. This suggests that Pfizer is becoming less efficient in utilizing its working capital to generate sales revenue. A lower working capital turnover could indicate inefficiencies in managing current assets and liabilities.

Overall, these activity ratios suggest that Pfizer may be facing challenges in managing its inventory, receivables, payables, and working capital efficiently. It is important for the company to monitor and improve these ratios to enhance its operational performance and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	85.21	85.12	92.47	75.72	62.53	68.08	70.93	70.95	72.60	93.41	116.98	130.29	130.96	123.66	115.32	111.87	91.61	103.48	103.49	99.13
Days of sales outstanding (DSO)	days	69.74	59.04	47.91	—	39.84	—	—	—	51.54	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	56.12	44.53	54.54	48.60	47.41	44.85	42.12	39.15	44.70	50.79	56.57	62.35	69.94	55.09	52.14	52.75	50.38	49.61	50.31	51.31

Days of inventory on hand (DOH) measures how long it takes for Pfizer Inc. to sell its inventory. The data shows an increasing trend in 2023 compared to 2022, indicating that Pfizer is holding onto its inventory for a longer period. This could suggest potential inefficiencies in managing inventory or a slowdown in sales.

Days of sales outstanding (DSO) reflects how long it takes for Pfizer to collect revenue after making a sale. The data reveals fluctuations in DSO throughout 2022 and 2023, with some quarters showing longer collection periods than others. This could indicate variations in Pfizer's credit policies or the efficiency of its accounts receivable management.

Number of days of payables indicates the average time Pfizer takes to pay its suppliers. The data shows fluctuating trends in payables days over the quarters, with some periods reflecting longer payment cycles. This could imply changes in Pfizer's relationships with suppliers or its working capital management practices.

Overall, while the activity ratios provide insights into Pfizer's operational efficiency in managing inventory, collecting receivables, and paying suppliers, further analysis and comparison with industry benchmarks are necessary to evaluate the company's performance comprehensively.

Long-term

	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
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
Total asset turnover	0.26	0.32	0.35	0.48	0.51	0.52	0.52	0.50	0.45	0.35	0.30	0.28	0.27	0.26	0.27	0.30	0.30	0.30	0.33	0.34

Pfizer Inc.'s long-term activity ratios indicate how efficiently the company utilizes its assets to generate sales over the long term.

1. Fixed Asset Turnover: The trend of Pfizer's fixed asset turnover ratio shows a declining pattern from Q1 2022 to Q4 2023. This ratio measures the company's ability to generate sales revenue from its investments in fixed assets. A higher ratio typically indicates that the company is effectively utilizing its fixed assets to generate sales. In Pfizer's case, the decline in the fixed asset turnover ratio over the period suggests that the company may be becoming less efficient in using its fixed assets to generate revenue.

2. Total Asset Turnover: Pfizer's total asset turnover ratio also shows a decreasing trend from Q1 2022 to Q4 2023. This ratio assesses how well the company is using all its assets to generate revenue. A lower total asset turnover ratio may indicate that Pfizer is not efficiently utilizing its total assets, which could lead to lower revenue generation per dollar of assets. In this case, the declining trend in the total asset turnover ratio suggests decreasing efficiency in utilizing all assets to generate sales over time.

Overall, the declining trends in both the fixed asset turnover and total asset turnover ratios for Pfizer Inc. indicate potential inefficiencies in asset utilization and could raise concerns about the company's long-term operational performance and capital allocation strategies. Further analysis and investigation into the factors impacting these ratios, such as changes in the company's asset base or business operations, would be beneficial for a more comprehensive understanding of Pfizer's long-term activity efficiency.