Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Pfizer Inc., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Short-term borrowings, including current portion of long-term debt 10,350 2,945 2,241 2,703 16,195
Long-term debt, excluding current portion 61,538 32,884 36,195 37,133 35,955
Total debt (carrying amount) 71,888 35,829 38,436 39,836 52,150

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Pfizer Inc. total debt decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term borrowings, including current portion of long-term debt 10,350
Long-term debt, excluding current portion 61,000
Total debt (fair value) 71,350
Financial Ratio
Debt, fair value to carrying amount ratio 0.99

Based on: 10-K (reporting date: 2023-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 4.43%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.90% 3,750 146
3.70% 6,000 222
2.10% 1,029 22
4.60% 5,660 260
3.50% 1,750 61
4.10% 12,000 492
5.80% 8,048 467
4.10% 7,995 328
4.10% 3,500 144
5.00% 11,250 563
Total 60,982 2,704
4.43%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 2,704 ÷ 60,982 = 4.43%


Interest Costs Incurred

Pfizer Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Interest expense 2,209 1,238 1,291 1,449 1,574
Capitalized interest 160 124 108 96 88
Interest costs incurred 2,369 1,362 1,399 1,545 1,662

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Pfizer Inc. interest expense decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Pfizer Inc. capitalized interest increased from 2021 to 2022 and from 2022 to 2023.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Pfizer Inc. interest costs incurred decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Add: Net income attributable to noncontrolling interest 39 35 46 36 29
Less: Discontinued operations, net of tax (14) 6 (434) 2,631 4
Add: Income tax expense (1,114) 3,328 1,852 476 1,384
Add: Interest expense 2,209 1,238 1,291 1,449 1,574
Earnings before interest and tax (EBIT) 3,267 35,967 25,602 8,946 19,256
 
Interest costs incurred 2,369 1,362 1,399 1,545 1,662
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 1.48 29.05 19.83 6.17 12.23
Adjusted interest coverage ratio (with capitalized interest)2 1.38 26.41 18.30 5.79 11.59

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 3,267 ÷ 2,209 = 1.48

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 3,267 ÷ 2,369 = 1.38


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Pfizer Inc. adjusted interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.