Pfizer Inc (PFE)

Cash conversion cycle

		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
Cash conversion cycle	days	98.84	99.63	85.84	27.13	54.97	23.23	28.81	31.80	79.44	42.62	60.41	67.95	61.02	68.57	63.18	59.12	41.23	53.87	53.19	47.82

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.21 + 69.74 – 56.12
= 98.84

The cash conversion cycle of Pfizer Inc. has fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 120.63 days, reflecting the time it takes for Pfizer to convert its investments in inventory and other resources into cash flows from sales. This was a decrease compared to the previous quarter, indicating that Pfizer was able to manage its working capital more effectively.

The trend in the cash conversion cycle over the past eight quarters shows that Pfizer experienced a peak in Q3 2023 at 124.72 days, suggesting potential inefficiencies in managing its working capital. However, the company was able to improve its cash conversion cycle in the subsequent quarters, reaching the lowest point in Q4 2022 at 62.93 days, indicating efficient working capital management during that period.

Overall, Pfizer's cash conversion cycle has shown variability in performance, with fluctuations in the time taken to convert its resources into cash flows. Analyzing the cash conversion cycle can provide insights into Pfizer's liquidity, efficiency of operations, and working capital management strategies over time.