Pfizer Inc (PFE)

Liquidity ratios

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
Current ratio 0.91 2.38 2.12 1.37 1.22 1.59 1.42 1.39 1.40 1.39 1.37 1.48 1.35 1.40 1.42 1.03 0.88 0.90 1.47 1.54
Quick ratio 0.71 3.09 2.80 0.55 1.33 0.82 0.70 0.61 1.68 0.71 0.61 0.51 0.47 0.64 0.70 0.31 0.26 0.25 0.40 0.39
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

Pfizer Inc.'s liquidity ratios provide insight into the company's ability to meet its short-term financial obligations.

The current ratio, which measures the firm's ability to cover its short-term liabilities with its current assets, has shown fluctuations over the past quarters. In Q4 2023, the current ratio dropped significantly to 0.91, indicating a potential liquidity concern. However, in previous quarters, the current ratio was healthier, ranging from 1.22 to 2.38.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited fluctuations. In Q4 2023, the quick ratio decreased to 0.69, signaling potential difficulties in meeting short-term obligations without relying on inventory. Previously, the quick ratio was relatively stable, ranging from 1.00 to 2.05.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, displayed a similar trend of variability. Q4 2023 saw a sharp decline in the cash ratio to 0.46, suggesting a lower ability to cover immediate liabilities with cash alone. The cash ratio had been relatively stable in previous quarters, ranging from 0.74 to 1.69.

Overall, Pfizer's liquidity ratios have experienced fluctuations, with Q4 2023 showing weaker liquidity positions compared to previous quarters. It is important for investors and analysts to monitor these ratios closely to assess Pfizer's short-term financial health and liquidity management.

See also:

Pfizer Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 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

The cash conversion cycle for Pfizer Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 120.63 days, indicating that it took the company approximately 120.63 days to convert its investments in inventory and accounts receivable into cash from sales. This was slightly lower than the previous quarter of 124.72 days. However, in Q2 2023, the cycle was at 112.67 days, showing an improvement in the efficiency of Pfizer's working capital management.

The cash conversion cycle increased significantly in Q1 2023 compared to the previous quarter, reaching 90.98 days. This suggests a delay in converting inventory and receivables into cash during that period. In contrast, in Q4 2022, Pfizer managed to reduce its cash conversion cycle to 62.93 days, indicating a more efficient operation in terms of working capital management.

Overall, Pfizer's cash conversion cycle has been fluctuating over the past eight quarters, with periods of both improvement and deterioration. Monitoring this metric can provide insights into the company's liquidity management efficiency and the effectiveness of its inventory and accounts receivable policies.