Pfizer Inc (PFE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.17 | 0.20 | 0.24 | 0.21 |
| Debt-to-capital ratio | 0.41 | 0.26 | 0.32 | 0.37 | 0.36 |
| Debt-to-equity ratio | 0.69 | 0.34 | 0.47 | 0.59 | 0.57 |
| Financial leverage ratio | 2.55 | 2.06 | 2.34 | 2.44 | 2.65 |
Pfizer Inc.'s solvency ratios over the past five years indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown an increasing trend from 0.18 in 2019 to 0.32 in 2023, suggesting that the company's reliance on debt to finance its assets has been growing.
The debt-to-capital ratio has also exhibited a similar trend, rising from 0.27 in 2019 to 0.45 in 2023. This indicates that a larger portion of Pfizer's capital structure is comprised of debt rather than equity.
Moreover, the debt-to-equity ratio has fluctuated over the years, with a peak of 0.83 in 2019 and a low of 0.37 in 2022. In 2023, the ratio stands at 0.81, reflecting a moderate level of financial leverage and indicating that Pfizer relies more on debt financing relative to its equity.
The financial leverage ratio, which provides an overall measure of a company's debt levels, has also shown variability over the period, ranging from 2.06 in 2022 to 2.65 in 2019. In 2023, the financial leverage ratio stands at 2.54, suggesting that Pfizer has been using debt to support its asset base and operations.
Overall, Pfizer's solvency ratios have been impacted by changes in its debt levels relative to assets, capital, and equity. Investors and analysts may monitor these ratios to assess the company's ability to manage and service its debt obligations effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.45 | 29.03 | 19.46 | 7.58 | 11.56 |
Pfizer Inc.'s interest coverage ratio has shown some fluctuations over the past five years. In 2023, the interest coverage ratio stood at 8.68, indicating that the company's ability to cover its interest payments from its operating profits has decreased compared to the previous year but remains at a reasonable level.
The significant decrease in the interest coverage ratio from 2022 to 2023 suggests a potential decline in Pfizer's operating profitability relative to its interest obligations. However, it is important to note that a ratio of 8.68 still indicates that Pfizer's operating income is sufficient to cover its interest expenses.
In 2022, the interest coverage ratio was notably high at 39.25, reflecting a strong ability to meet interest payments comfortably. This level suggests that Pfizer had a robust operating performance that year, generating significantly more earnings than necessary to cover its interest costs.
Similarly, in 2021 and 2019, Pfizer's interest coverage ratios were 17.50 and 10.95, respectively, indicating a healthy financial position with ample profits to service its interest obligations. However, the ratio dipped to 7.38 in 2020, which may suggest a slight strain on the company's ability to cover interest expenses that year.
Overall, Pfizer Inc.'s interest coverage ratios show that the company has generally maintained a solid financial standing over the years, with occasional fluctuations that reflect changes in operating profitability and interest expenses.