Pfizer Inc (PFE)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,213,000 | 12,226,000 | 24,152,000 | 33,157,000 | 35,939,000 | 34,360,000 | 33,228,000 | 28,461,000 | 25,124,000 | 22,295,000 | 15,619,000 | 12,895,000 | 10,978,000 | 7,698,000 | 17,367,000 | 17,609,000 | 18,183,000 | 18,775,000 | 12,129,000 | 12,455,000 |
| Long-term debt | US$ in thousands | 61,538,000 | 61,048,000 | 61,356,000 | 31,704,000 | 32,884,000 | 32,629,000 | 34,294,000 | 35,656,000 | 36,195,000 | 36,250,000 | 35,354,000 | 35,347,000 | 37,133,000 | 49,785,000 | 50,529,000 | 36,281,000 | 35,955,000 | 36,044,000 | 36,168,000 | 35,733,000 |
| Total stockholders’ equity | US$ in thousands | 89,014,000 | 96,934,000 | 99,019,000 | 100,970,000 | 95,661,000 | 92,631,000 | 87,208,000 | 82,424,000 | 77,201,000 | 75,691,000 | 70,042,000 | 68,620,000 | 63,238,000 | 65,259,000 | 64,336,000 | 65,026,000 | 63,143,000 | 65,103,000 | 59,568,000 | 58,806,000 |
| Return on total capital | 2.13% | 7.74% | 15.06% | 24.99% | 27.96% | 27.43% | 27.35% | 24.10% | 22.16% | 19.92% | 14.82% | 12.40% | 10.94% | 6.69% | 15.12% | 17.38% | 18.35% | 18.56% | 12.67% | 13.17% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 eight quarters. The return on total capital was 3.15% in Q4 2023, indicating a decline from the previous quarter. This may suggest a decrease in the efficiency of utilizing both debt and equity to generate profits.
In Q3 2023, the return on total capital increased to 7.66%, demonstrating an improvement in the company's ability to generate returns on invested capital. This positive trend continued in Q2 2023, where the return on total capital reached 15.19%, reflecting a substantial increase in profitability compared to previous quarters.
Q1 2023 witnessed a significant rise in the return on total capital to 25.67%, indicating a notable efficiency in utilizing capital to generate profits. In comparison, the trend was even stronger in Q4 2022, with a return on total capital of 29.46%, showcasing a robust performance in capital efficiency.
Throughout Q3 and Q2 of 2022, Pfizer Inc. maintained a strong return on total capital, with values of 28.26% and 26.59% respectively, indicating consistent profitability and effective capital allocation. In Q1 2022, the return on total capital was 22.83%, showing a slightly lower, but still healthy, performance in capital efficiency.
Overall, Pfizer Inc.'s return on total capital has shown variability over the past eight quarters, with some fluctuations but generally maintaining strong levels of profitability and efficient capital utilization.
Peer comparison
Dec 31, 2023