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