Pfizer Inc (PFE)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 3,213,000 35,938,000 25,122,000 10,978,000 18,182,000
Long-term debt US$ in thousands 61,538,000 32,884,000 36,195,000 37,133,000 35,955,000
Total stockholders’ equity US$ in thousands 89,014,000 95,661,000 77,201,000 63,238,000 63,143,000
Return on total capital 2.13% 27.96% 22.15% 10.94% 18.35%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,213,000K ÷ ($61,538,000K + $89,014,000K)
= 2.13%

Pfizer Inc.'s return on total capital has fluctuated over the past five years, as evidenced by the data provided. In 2023, the return on total capital was 3.15%, a significant decrease from the previous year's figure of 29.46%. This decline may signal a decrease in the company's ability to generate profits relative to its total capital employed. However, it is important to note that the return on total capital in 2023 is still positive, indicating that the company is generating some return on the capital invested.

Looking back over the five-year period, Pfizer's return on total capital has shown variability, with the highest return recorded in 2022 at 29.46% and the lowest in 2020 at 9.85%. The fluctuations in the return on total capital may be influenced by various factors such as changes in the company's profitability, asset utilization, and capital structure.

Overall, Pfizer's return on total capital performance should be analyzed in conjunction with other financial metrics and qualitative factors to gain a more comprehensive understanding of the company's financial health and performance.


Peer comparison

Dec 31, 2023