Pfizer Inc (PFE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	43,333,000	51,259,000	59,693,000	35,067,000	32,803,000
Total current liabilities	US$ in thousands	47,794,000	42,138,000	42,671,000	25,920,000	37,304,000
Current ratio		0.91	1.22	1.40	1.35	0.88

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $43,333,000K ÷ $47,794,000K
= 0.91

The current ratio of Pfizer Inc. has shown some variability over the past five years, ranging from 0.88 to 1.40. In 2023, the current ratio decreased to 0.91 from the previous year's ratio of 1.22. This decline may indicate a deterioration in the company's short-term liquidity position, as it suggests that Pfizer's current assets may not be sufficient to cover its current liabilities.

A current ratio below 1.0 raises concerns about the ability of a company to meet its short-term obligations with its current assets alone. In Pfizer's case, the current ratio of 0.91 in 2023 indicates a potential liquidity challenge. This may prompt further investigation into the company's cash flow management, inventory turnover, and debt obligations to assess the overall health of its financial position.

It is important for Pfizer to carefully monitor its current ratio and take appropriate measures to ensure it maintains a healthy liquidity position to meet its short-term obligations effectively. Additional analysis and comparison with industry peers can provide further insights into Pfizer's financial performance and potential areas for improvement.