Pfizer Inc (PFE)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	50,358,000	43,333,000	51,259,000	59,693,000	35,067,000
Total current liabilities	US$ in thousands	42,995,000	47,794,000	42,138,000	42,671,000	25,920,000
Current ratio		1.17	0.91	1.22	1.40	1.35

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $50,358,000K ÷ $42,995,000K
= 1.17

The current ratio of Pfizer Inc has shown some fluctuations over the past five years. The company's current ratio was 1.35 as of December 31, 2020, indicating that it had $1.35 in current assets to cover each $1 of current liabilities. This ratio increased slightly to 1.40 by December 31, 2021, suggesting improved short-term liquidity.

However, by December 31, 2022, the current ratio declined to 1.22, indicating a potential strain on the company's ability to meet its short-term obligations. The ratio further decreased to 0.91 by December 31, 2023, raising concerns about Pfizer's liquidity position.

Despite the downward trend, Pfizer Inc managed to improve its current ratio to 1.17 by December 31, 2024. While this ratio is still below the ideal benchmark of 2:1, it suggests that the company has increased its ability to cover short-term liabilities with current assets compared to the previous year.

Overall, the current ratio trend of Pfizer Inc reflects fluctuations in its short-term liquidity position, highlighting the importance of monitoring liquidity levels to ensure continued financial stability and solvency.