Pfizer Inc (PFE)
Receivables 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 |
| Receivables | US$ in thousands | 11,177,000 | 10,952,000 | 11,479,000 | 7,930,000 | 8,724,000 |
| Receivables turnover | 5.23 | 9.16 | 7.08 | 5.25 | 5.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $58,496,000K ÷ $11,177,000K
= 5.23
The receivables turnover ratio for Pfizer Inc. has fluctuated over the past five years. In 2023, the ratio dropped to 5.23 from 9.16 in 2022, indicating a decrease in the company's ability to collect its accounts receivable during the year. This decline may be attributed to changes in the company's credit policies, customer payment behavior, or the overall economic environment.
Comparing the 2023 ratio to the ratios of previous years, it is lower than the 2021 and 2019 ratios of 7.08 and 5.93 respectively but slightly higher than the 2020 ratio of 5.28. This suggests that Pfizer's efficiency in collecting receivables in 2023 was lower than in some prior years but still better than in 2020.
Overall, a lower receivables turnover ratio indicates that Pfizer took longer to collect outstanding receivables in 2023 compared to previous years. It is essential for the company to analyze the reasons behind this change and work towards improving its accounts receivable management efficiency in the future.
Peer comparison
Dec 31, 2023