Stock Analysis on Net
Stock Analysis on Net
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Pfizer Inc. (NYSE:PFE)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Pfizer Inc., adjustment to net income attributable to Pfizer Inc.

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Pfizer Inc. (as reported) 9,616  16,273  11,153  21,308  7,215 
Add: Available-for-sale securities 151  33  (469) 532  96 
Net income attributable to Pfizer Inc. (adjusted) 9,767  16,306  10,684  21,840  7,311 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Pfizer Inc., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 22.95% 31.45% 20.79% 40.55% 13.66%
Adjusted net profit margin 23.31% 31.51% 19.92% 41.56% 13.84%
Return on Equity (ROE)
Reported ROE 15.21% 25.77% 17.59% 29.88% 12.12%
Adjusted ROE 15.44% 25.82% 16.85% 30.63% 12.28%
Return on Assets (ROA)
Reported ROA 6.23% 9.72% 7.00% 12.40% 4.20%
Adjusted ROA 6.33% 9.74% 6.70% 12.71% 4.26%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Pfizer Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Pfizer Inc.’s adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Pfizer Inc.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Pfizer Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 9,616  16,273  11,153  21,308  7,215 
Revenues 41,908  51,750  53,647  52,546  52,824 
Profitability Ratio
Net profit margin1 22.95% 31.45% 20.79% 40.55% 13.66%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. 9,767  16,306  10,684  21,840  7,311 
Revenues 41,908  51,750  53,647  52,546  52,824 
Profitability Ratio
Adjusted net profit margin2 23.31% 31.51% 19.92% 41.56% 13.84%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

2020 Calculations

1 Net profit margin = 100 × Net income attributable to Pfizer Inc. ÷ Revenues
= 100 × 9,616 ÷ 41,908 = 22.95%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Pfizer Inc. ÷ Revenues
= 100 × 9,767 ÷ 41,908 = 23.31%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Pfizer Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 9,616  16,273  11,153  21,308  7,215 
Total Pfizer Inc. shareholders’ equity 63,238  63,143  63,407  71,308  59,544 
Profitability Ratio
ROE1 15.21% 25.77% 17.59% 29.88% 12.12%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. 9,767  16,306  10,684  21,840  7,311 
Total Pfizer Inc. shareholders’ equity 63,238  63,143  63,407  71,308  59,544 
Profitability Ratio
Adjusted ROE2 15.44% 25.82% 16.85% 30.63% 12.28%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

2020 Calculations

1 ROE = 100 × Net income attributable to Pfizer Inc. ÷ Total Pfizer Inc. shareholders’ equity
= 100 × 9,616 ÷ 63,238 = 15.21%

2 Adjusted ROE = 100 × Adjusted net income attributable to Pfizer Inc. ÷ Total Pfizer Inc. shareholders’ equity
= 100 × 9,767 ÷ 63,238 = 15.44%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Pfizer Inc.’s adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 9,616  16,273  11,153  21,308  7,215 
Total assets 154,229  167,489  159,422  171,797  171,615 
Profitability Ratio
ROA1 6.23% 9.72% 7.00% 12.40% 4.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. 9,767  16,306  10,684  21,840  7,311 
Total assets 154,229  167,489  159,422  171,797  171,615 
Profitability Ratio
Adjusted ROA2 6.33% 9.74% 6.70% 12.71% 4.26%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

2020 Calculations

1 ROA = 100 × Net income attributable to Pfizer Inc. ÷ Total assets
= 100 × 9,616 ÷ 154,229 = 6.23%

2 Adjusted ROA = 100 × Adjusted net income attributable to Pfizer Inc. ÷ Total assets
= 100 × 9,767 ÷ 154,229 = 6.33%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Pfizer Inc.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.