Pfizer Inc (PFE)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	2,853,000	3,148,000	2,632,000	2,166,000	416,000	1,298,000	1,780,000	2,470,000	1,944,000	1,966,000	2,372,000	1,768,000	1,786,000	1,587,000	1,801,000	2,151,000	1,121,000	2,785,000	1,784,000	1,937,000
Short-term investments	US$ in thousands	19,674,000	82,066,000	84,306,000	17,806,000	44,632,000	34,825,000	31,524,000	21,427,000	58,250,000	27,730,000	19,328,000	11,899,000	10,437,000	20,325,000	20,993,000	8,199,000	8,525,000	6,302,000	11,128,000	9,682,000
Total current liabilities	US$ in thousands	47,794,000	31,136,000	34,647,000	36,562,000	42,138,000	44,314,000	47,410,000	39,268,000	42,671,000	41,803,000	35,664,000	26,652,000	25,920,000	34,154,000	32,723,000	33,890,000	37,304,000	36,974,000	32,030,000	29,423,000
Cash ratio		0.47	2.74	2.51	0.55	1.07	0.82	0.70	0.61	1.41	0.71	0.61	0.51	0.47	0.64	0.70	0.31	0.26	0.25	0.40	0.39

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,853,000K + $19,674,000K) ÷ $47,794,000K
= 0.47

The cash ratio of Pfizer Inc. has fluctuated over the past eight quarters, ranging from a low of 0.46 in Q4 2023 to a high of 1.69 in Q3 2023. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

In recent quarters, Pfizer has maintained a relatively healthy cash ratio, with ratios above 1.0 indicating that the company had more than enough cash to cover its short-term liabilities. The significant increase in Q3 2023 suggests improved liquidity and a stronger financial position during that period. However, the decrease in Q4 2023 may indicate a potential shift in the company's cash management or operating cash flows.

Overall, the trend in Pfizer's cash ratio shows variability but generally reflects a solid liquidity position, which is crucial for meeting financial obligations and pursuing growth opportunities in the pharmaceutical industry. It is important for investors and stakeholders to continue monitoring this ratio to assess Pfizer's ability to manage its short-term obligations effectively.