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.
Peer comparison
Dec 31, 2023