Stock Analysis on Net
Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Pfizer Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Developed technology rights 99,266 85,604 73,346 73,545 88,730
Brands 922 922 922 922 922
Licensing agreements and other 2,756 2,237 2,284 2,292 1,773
Finite-lived intangible assets, gross carrying amount 102,944 88,763 76,552 76,759 91,425
Accumulated amortization (62,828) (58,548) (55,838) (52,863) (65,038)
Finite-lived intangible assets, less accumulated amortization 40,116 30,215 20,714 23,896 26,387
Brands 827 827 827 827 1,991
IPR&D 23,193 11,357 3,092 3,175 5,919
Licensing agreements and other 764 971 513 573 1,073
Indefinite-lived intangible assets 24,784 13,155 4,432 4,575 8,983
Identifiable intangible assets 64,900 43,370 25,146 28,471 35,370
Goodwill 67,783 51,375 49,208 49,577 58,653
Identifiable intangible assets and goodwill 132,683 94,745 74,354 78,048 94,023

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).

Item Description The company
Identifiable intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Pfizer Inc. identifiable intangible assets increased from 2021 to 2022 and from 2022 to 2023.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Pfizer Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Identifiable intangible assets and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Pfizer Inc. identifiable intangible assets and goodwill increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Pfizer Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 226,501 197,205 181,476 154,229 167,489
Less: Goodwill 67,783 51,375 49,208 49,577 58,653
Total assets (adjusted) 158,718 145,830 132,268 104,652 108,836
Adjustment to Total Pfizer Inc. Shareholders’ Equity
Total Pfizer Inc. shareholders’ equity (as reported) 89,014 95,661 77,201 63,238 63,143
Less: Goodwill 67,783 51,375 49,208 49,577 58,653
Total Pfizer Inc. shareholders’ equity (adjusted) 21,231 44,286 27,993 13,661 4,490

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).

Pfizer Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Pfizer Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.26 0.51 0.45 0.27 0.31
Adjusted total asset turnover 0.37 0.69 0.61 0.40 0.48
Financial Leverage
Reported financial leverage 2.54 2.06 2.35 2.44 2.65
Adjusted financial leverage 7.48 3.29 4.73 7.66 24.24
Return on Equity (ROE)
Reported ROE 2.38% 32.79% 28.47% 15.21% 25.77%
Adjusted ROE 9.98% 70.84% 78.52% 70.39% 362.43%
Return on Assets (ROA)
Reported ROA 0.94% 15.91% 12.11% 6.23% 9.72%
Adjusted ROA 1.34% 21.51% 16.62% 9.19% 14.95%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Pfizer Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Pfizer Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Pfizer Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Pfizer Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Pfizer Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 58,496 100,330 81,288 41,908 51,750
Total assets 226,501 197,205 181,476 154,229 167,489
Activity Ratio
Total asset turnover1 0.26 0.51 0.45 0.27 0.31
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 58,496 100,330 81,288 41,908 51,750
Adjusted total assets 158,718 145,830 132,268 104,652 108,836
Activity Ratio
Adjusted total asset turnover2 0.37 0.69 0.61 0.40 0.48

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 Total asset turnover = Revenues ÷ Total assets
= 58,496 ÷ 226,501 = 0.26

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 58,496 ÷ 158,718 = 0.37

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Pfizer Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 226,501 197,205 181,476 154,229 167,489
Total Pfizer Inc. shareholders’ equity 89,014 95,661 77,201 63,238 63,143
Solvency Ratio
Financial leverage1 2.54 2.06 2.35 2.44 2.65
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 158,718 145,830 132,268 104,652 108,836
Adjusted total Pfizer Inc. shareholders’ equity 21,231 44,286 27,993 13,661 4,490
Solvency Ratio
Adjusted financial leverage2 7.48 3.29 4.73 7.66 24.24

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 Financial leverage = Total assets ÷ Total Pfizer Inc. shareholders’ equity
= 226,501 ÷ 89,014 = 2.54

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Pfizer Inc. shareholders’ equity
= 158,718 ÷ 21,231 = 7.48

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Pfizer Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Total Pfizer Inc. shareholders’ equity 89,014 95,661 77,201 63,238 63,143
Profitability Ratio
ROE1 2.38% 32.79% 28.47% 15.21% 25.77%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Adjusted total Pfizer Inc. shareholders’ equity 21,231 44,286 27,993 13,661 4,490
Profitability Ratio
Adjusted ROE2 9.98% 70.84% 78.52% 70.39% 362.43%

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 ROE = 100 × Net income attributable to Pfizer Inc. ÷ Total Pfizer Inc. shareholders’ equity
= 100 × 2,119 ÷ 89,014 = 2.38%

2 Adjusted ROE = 100 × Net income attributable to Pfizer Inc. ÷ Adjusted total Pfizer Inc. shareholders’ equity
= 100 × 2,119 ÷ 21,231 = 9.98%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Pfizer Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Total assets 226,501 197,205 181,476 154,229 167,489
Profitability Ratio
ROA1 0.94% 15.91% 12.11% 6.23% 9.72%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Adjusted total assets 158,718 145,830 132,268 104,652 108,836
Profitability Ratio
Adjusted ROA2 1.34% 21.51% 16.62% 9.19% 14.95%

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 ROA = 100 × Net income attributable to Pfizer Inc. ÷ Total assets
= 100 × 2,119 ÷ 226,501 = 0.94%

2 Adjusted ROA = 100 × Net income attributable to Pfizer Inc. ÷ Adjusted total assets
= 100 × 2,119 ÷ 158,718 = 1.34%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Pfizer Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.