Analysis of Debt
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- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Total Debt (Carrying Amount)
Pfizer Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The carrying amount of total debt exhibited a fluctuating pattern over the five-year period. An initial decrease was followed by a substantial increase, then a moderate decline, and finally a slight increase.
- Overall Trend
- Total debt began at US$38.436 billion in 2021, decreased to US$35.829 billion in 2022, and then experienced a significant rise to US$71.888 billion in 2023. A subsequent decrease to US$64.351 billion occurred in 2024, followed by a marginal increase to US$64.795 billion in 2025.
- Short-Term Borrowings
- Short-term borrowings demonstrated considerable volatility. Starting at US$2.241 billion in 2021, they increased to US$2.945 billion in 2022, then surged to US$10.350 billion in 2023. These borrowings decreased substantially to US$6.946 billion in 2024 and further to US$3.154 billion in 2025.
- Long-Term Debt
- Long-term debt generally increased over the period, though not consistently. It decreased from US$36.195 billion in 2021 to US$32.884 billion in 2022, then rose significantly to US$61.538 billion in 2023. A slight decrease to US$57.405 billion was observed in 2024, followed by an increase to US$61.641 billion in 2025.
The substantial increase in total debt in 2023 appears to be driven primarily by a significant rise in long-term debt, coupled with a peak in short-term borrowings. The subsequent reduction in 2024 reflects a decrease in short-term borrowings, while long-term debt remained relatively stable. The slight increase in total debt in 2025 is attributable to a rise in long-term debt, offsetting a further decrease in short-term borrowings.
Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term borrowings, including current portion of long-term debt | |
| Long-term debt, excluding current portion | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Pfizer Inc., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||
| Capitalized interest | |||||||||||
| Interest costs incurred |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Interest expense exhibited fluctuations over the five-year period. Initial values decreased before increasing substantially, while capitalized interest consistently rose. Consequently, total interest costs incurred mirrored this pattern, demonstrating a significant upward trend followed by a slight decrease in the most recent year.
- Interest Expense
- Interest expense decreased from US$1,291 million in 2021 to US$1,238 million in 2022, representing a reduction of approximately 4.1%. A substantial increase was then observed, with expense rising to US$2,209 million in 2023. This trend continued into 2024, reaching US$3,091 million, before decreasing slightly to US$2,671 million in 2025. The 2025 value, while lower than 2024, remains significantly higher than the 2021 and 2022 levels.
- Capitalized Interest
- Capitalized interest demonstrated a consistent upward trend throughout the period. It increased from US$108 million in 2021 to US$124 million in 2022, US$160 million in 2023, US$182 million in 2024, and finally to US$166 million in 2025. While the increase slowed between 2024 and 2025, the overall pattern indicates a growing amount of interest being added to the cost of assets under construction.
- Interest Costs Incurred
- Total interest costs incurred followed the combined effect of the trends in interest expense and capitalized interest. A slight decrease was noted from US$1,399 million in 2021 to US$1,362 million in 2022. However, costs then increased significantly, reaching US$2,369 million in 2023 and US$3,273 million in 2024. The most recent year, 2025, saw a modest decrease to US$2,837 million, though this value remains considerably higher than the earlier years in the period. The substantial increases in 2023 and 2024 suggest a growing debt burden or rising interest rates, or a combination of both.
The observed increases in interest costs incurred warrant further investigation to determine the underlying drivers, such as changes in debt levels, interest rate fluctuations, or increased capital expenditure financed through debt. The slight decrease in 2025 may indicate the beginning of a stabilization, but continued monitoring is recommended.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
The interest coverage ratios demonstrate a significant shift in performance over the observed period. Initially strong, coverage declined substantially before stabilizing. Both the standard and adjusted interest coverage ratios exhibit similar patterns, suggesting that capitalized interest does not materially alter the overall trend.
- Interest Coverage Ratio (without capitalized interest)
- In 2021 and 2022, the interest coverage ratio was robust, registering 19.83 and 29.05 respectively. This indicates a substantial ability to meet interest obligations from earnings. However, a dramatic decrease occurred in 2023, with the ratio falling to 1.48. A partial recovery was then observed in 2024 and 2025, reaching 3.60 and 3.82, respectively. While these later values represent improvement, they remain considerably lower than the levels seen in 2021 and 2022.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- The adjusted interest coverage ratio mirrored the trend of the standard ratio. Values of 18.30 and 26.41 were recorded for 2021 and 2022, followed by a sharp decline to 1.38 in 2023. Similar to the standard ratio, a modest increase was noted in 2024 (3.40) and 2025 (3.59). The difference between the standard and adjusted ratios remained relatively consistent throughout the period, indicating a stable impact from capitalized interest.
- Overall Trend
- The period is characterized by a distinct shift from strong interest coverage to a period of significantly reduced coverage, followed by a limited recovery. The substantial decline in 2023 warrants further investigation to understand the underlying factors contributing to this change. The stabilization in 2024 and 2025 suggests a potential leveling off, but continued monitoring is necessary to confirm a sustained improvement in the ability to cover interest expenses.