Pfizer Inc (PFE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,119,000 | 31,372,000 | 21,979,000 | 9,159,000 | 16,026,000 |
| Total stockholders’ equity | US$ in thousands | 89,014,000 | 95,661,000 | 77,201,000 | 63,238,000 | 63,143,000 |
| ROE | 2.38% | 32.79% | 28.47% | 14.48% | 25.38% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,119,000K ÷ $89,014,000K
= 2.38%
Pfizer Inc.'s return on equity (ROE) has experienced fluctuations over the past five years. In 2023, the ROE decreased to 2.38% from 32.80% in 2022, indicating a significant decline in the company's ability to generate profit from shareholders' equity. This sharp decrease may raise concerns among investors and analysts about Pfizer's performance and utilization of shareholder funds.
In 2021, Pfizer's ROE was 28.47%, showing a strong performance, which declined slightly to 15.20% in 2020. The company then saw an improvement in ROE to 25.77% in 2019, suggesting enhanced efficiency in utilizing shareholders' equity to generate profits.
The fluctuation in Pfizer's ROE over the years may be attributable to various factors such as changes in the company's profitability, financial leverage, asset utilization, or adjustments in shareholders' equity. It is essential for investors and stakeholders to closely monitor Pfizer's financial performance and analyze the reasons behind the fluctuations in ROE to make informed decisions about the company's potential for returns and growth.
Peer comparison
Dec 31, 2023