Pfizer Inc (PFE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 241.21 | 125.27 | 95.45 | 107.28 | 337.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 241.21 | 125.27 | 95.45 | 107.28 | 337.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 241.21 + — – —
= 241.21
The cash conversion cycle of Pfizer Inc has displayed significant fluctuations over the past five years. In December 2020, the company's cash conversion cycle stood at 337.87 days, indicating that it took a relatively long time for Pfizer to convert its investments in inventory and other resources into cash inflows.
However, there has been a notable improvement in the efficiency of Pfizer's cash conversion cycle in the subsequent years. By December 2022, the cycle had decreased to 95.45 days, reflecting the company's ability to manage its working capital more effectively and convert its resources into cash at a faster pace.
In December 2023, there was a slight increase in the cash conversion cycle to 125.27 days, which may have been influenced by various internal and external factors impacting Pfizer's operational processes and cash flow management.
By the end of December 2024, the cash conversion cycle had increased significantly to 241.21 days, indicating a potential slowdown in Pfizer's cash conversion efficiency. This could be a result of changes in market conditions, supply chain disruptions, or other challenges affecting the company's cash flow dynamics.
Overall, Pfizer Inc's cash conversion cycle analysis shows a mix of improvements and fluctuations over the five-year period, highlighting the importance of continuously monitoring and optimizing working capital management to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024