Pfizer Inc (PFE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	227,000,000	197,000,000	181,000,000	154,229,000	167,594,000
Total stockholders’ equity	US$ in thousands	89,014,000	95,661,000	77,201,000	63,238,000	63,143,000
Financial leverage ratio		2.55	2.06	2.34	2.44	2.65

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $227,000,000K ÷ $89,014,000K
= 2.55

The financial leverage ratio of Pfizer Inc. has fluctuated over the past five years. In 2023, the financial leverage ratio stands at 2.54, which indicates that for every dollar of equity, the company has $2.54 of debt. Compared to the previous year, there has been an increase in the financial leverage ratio from 2.06 in 2022.

The trend in the financial leverage ratio shows variability, with a peak at 2.65 in 2019 and a low point at 2.06 in 2022. This suggests that Pfizer's capital structure has been subject to changes over the years, possibly influenced by the company's strategic decisions regarding debt financing.

It is important to note that a higher financial leverage ratio implies higher financial risk, as the company is relying more on debt to finance its operations. Investors and creditors often monitor this ratio to assess the company's ability to meet its debt obligations and to evaluate its overall financial health and stability. The upward trend in Pfizer's financial leverage ratio over the years may warrant further investigation into the company's debt management and risk mitigation strategies.