Pfizer Inc (PFE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -27,642,000 | 16,368,000 | 3,390,000 | -5,395,000 | -5,052,000 |
| Total assets | US$ in thousands | 227,000,000 | 197,000,000 | 181,000,000 | 154,229,000 | 167,594,000 |
| Operating ROA | -12.18% | 8.31% | 1.87% | -3.50% | -3.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-27,642,000K ÷ $227,000,000K
= -12.18%
The operating return on assets (Operating ROA) of Pfizer Inc. has fluctuated over the past five years. In 2023, the Operating ROA decreased to 1.48% from 18.90% in 2022, indicating a significant decline in the company's operating performance efficiency. This decrease could be attributed to various factors such as changes in operating expenses, revenue, or asset utilization.
Comparing the Operating ROA of 2023 to the figures from the previous years, it is evident that Pfizer Inc. achieved a higher Operating ROA in 2022 (18.90%) and 2021 (11.15%), indicating stronger operating profitability relative to the assets employed during those years. However, the Operating ROA in 2023 is lower than that of 2020 (5.68%) and 2019 (8.31%), suggesting a deterioration in operating efficiency compared to those periods.
Overall, the decline in Pfizer Inc.'s Operating ROA in 2023 raises concerns about the company's ability to generate profits from its assets efficiently. Investors and stakeholders may need to further examine the underlying reasons for this decline and assess the company's operational strategies to improve its future operating performance.
Peer comparison
Dec 31, 2023