Pfizer Inc (PFE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.42 | 2.54 | 2.06 | 2.35 | 2.44 |
Based on the provided data for Pfizer Inc, the solvency ratios indicate a very strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the years 2020 to 2024.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent pattern of 0.00, indicating that Pfizer's level of debt is negligible compared to its total assets, capital, and equity. This implies that Pfizer has minimal financial risk associated with its debt obligations.
Furthermore, the Financial Leverage ratio, which measures the extent to which a company is using debt to finance its operations, shows a relatively stable trend over the years, ranging from 2.06 to 2.54. Although there is some fluctuation in this ratio, it remains within a moderate range and does not raise concerns about excessive leverage.
Overall, based on these solvency ratios, Pfizer Inc appears to have a robust financial position with a conservative capital structure, low debt levels, and a strong ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.60 | 1.48 | 29.05 | 19.83 | 5.86 |
The interest coverage ratio for Pfizer Inc has shown varying trends over the past five years. As of December 31, 2020, the ratio was 5.86, indicating that Pfizer's operating income was able to cover its interest expenses nearly six times. This suggests a moderate level of financial health in terms of meeting interest obligations.
By December 31, 2021, the interest coverage ratio significantly improved to 19.83, reflecting a substantial increase in Pfizer's ability to cover its interest expenses from its operating income. This indicates a strong financial position and the company's improved capacity to meet its interest payment obligations comfortably.
The trend continued to strengthen over the following years, with the interest coverage ratio reaching 29.05 by December 31, 2022, demonstrating further enhancement in Pfizer's ability to cover its interest expenses with ease.
However, there was a notable decline in the interest coverage ratio by December 31, 2023, dropping to 1.48. This significant decrease suggests a potential strain on Pfizer's financial health in meeting its interest obligations with operating income.
Subsequently, by December 31, 2024, the interest coverage ratio slightly improved to 3.60, indicating a modest recovery in Pfizer's ability to cover its interest expenses, although still below the levels seen in the previous years.
Overall, while Pfizer's interest coverage ratio has shown fluctuations, it is essential for the company to maintain a healthy ratio to ensure it can meet its interest payments and portray a stable financial position to stakeholders.