Pfizer Inc (PFE)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.00 | 0.86 | 1.05 | 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 |
| Quick ratio | 0.48 | 0.23 | 0.16 | 0.29 | 0.27 | 1.42 | 1.29 | 0.55 | 0.54 | 0.82 | 0.70 | 0.61 | 0.73 | 0.71 | 0.61 | 0.51 | 0.47 | 0.31 | 0.35 | 0.31 |
| Cash ratio | 0.48 | 0.23 | 0.16 | 0.29 | 0.27 | 1.42 | 1.29 | 0.55 | 0.54 | 0.82 | 0.70 | 0.61 | 0.73 | 0.71 | 0.61 | 0.51 | 0.47 | 0.31 | 0.35 | 0.31 |
Pfizer Inc's liquidity ratios show fluctuations over the reporting periods, indicating variations in the company's ability to meet short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 0.86 to 2.38 between June 2024 and September 2023, respectively. The ratio improved in the latest quarter compared to the previous quarter, signaling a better ability to cover short-term obligations with current assets.
The quick ratio, a stricter measure of liquidity that excludes inventory from current assets, has also shown fluctuations. It ranged from 0.16 to 1.42 between June 2024 and September 2023, respectively. A quick ratio above 1 indicates a strong ability to meet short-term obligations without relying on inventory. Similar to the current ratio, the quick ratio has improved in the latest quarter compared to the previous quarter, suggesting a better ability to cover immediate liabilities.
The cash ratio, which measures the company's ability to cover current liabilities using only cash and cash equivalents, also exhibited variability. The ratio ranged from 0.16 to 1.42 between June 2024 and September 2023, respectively. A higher cash ratio indicates a stronger ability to repay short-term debts with cash on hand. Despite fluctuations, the cash ratio improved in the latest quarter compared to the previous quarter, indicating a better cash position.
Overall, while Pfizer Inc's liquidity ratios have shown fluctuations, the company has generally maintained a reasonable ability to meet its short-term obligations, with improvements observed in the latest quarter across all three liquidity metrics.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 180.81 | 173.99 | 146.01 | 148.27 | 130.59 | 126.10 | 150.56 | 112.98 | 94.30 | 99.64 | 98.45 | 99.13 | 106.77 | 130.57 | 195.48 | 259.63 | 290.57 | 346.33 | 316.74 | 302.48 |
On analyzing Pfizer Inc's cash conversion cycle over the past few years, we observe the following trends:
1. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It is computed as the sum of days inventory outstanding (DIO), days sales outstanding (DSO), and days payable outstanding (DPO).
2. From March 31, 2020, to December 31, 2024, Pfizer's cash conversion cycle has shown fluctuations. The cycle peaked at 346.33 days on September 30, 2020, indicating a longer turnaround time for converting investments into cash.
3. In more recent periods, the cash conversion cycle has generally trended downwards, reflecting improvements in Pfizer's efficiency in managing its working capital. For instance, by December 31, 2022, the cycle reduced to 94.30 days, indicating a more streamlined process.
4. However, there have been intermittent increases in the cash conversion cycle, such as the spikes in September 30, 2023, and December 31, 2024, to 173.99 days and 180.81 days, respectively. These increases may suggest challenges in inventory management or collection of receivables.
5. The trend appears to have improved in recent periods, with the cycle decreasing to 146.01 days by June 30, 2024, and then slightly increasing to 180.81 days by December 31, 2024.
6. Overall, Pfizer's management of the cash conversion cycle seems to be dynamic, with fluctuations influenced by factors like inventory turnover, credit terms with customers, and payment terms with suppliers. The company's ability to optimize this cycle can impact its liquidity and operational efficiency.