Pfizer Inc (PFE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 11,114,000 | 3,267,000 | 35,967,000 | 25,602,000 | 8,487,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 88,203,000 | 89,014,000 | 95,661,000 | 77,201,000 | 63,238,000 |
| Return on total capital | 12.60% | 3.67% | 37.60% | 33.16% | 13.42% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $11,114,000K ÷ ($—K + $88,203,000K)
= 12.60%
Pfizer Inc's return on total capital has displayed fluctuations over the years based on the provided data. In December 2020, the return on total capital stood at 13.42%, showing a moderate performance level. Subsequently, there was a significant improvement as of December 2021, with a return of 33.16%, indicating a substantial increase in profitability and efficiency in utilizing its total capital.
The performance continued to strengthen in December 2022, reaching a return on total capital of 37.60%, reflecting a commendable ability to generate profits from the total capital employed. However, there was a notable decline in December 2023, with the return dropping to 3.67%, signaling a dip in profitability relative to the capital invested.
In the most recent period of December 2024, the return on total capital improved to 12.60%, bouncing back from the previous year's decline. Overall, Pfizer Inc's return on total capital has demonstrated variability, showcasing both strong periods of profitability and temporary downturns. Monitoring this metric over time can provide insights into the company's financial performance and capital allocation efficiency.
Peer comparison
Dec 31, 2024