Pfizer Inc. (NYSE:PFE)

Land

The value of land shows a consistent decline over the five-year period, decreasing from 444 million US dollars in 2020 to 291 million US dollars in 2024. This trend suggests either disposals or revaluations leading to a reduction in land assets.

Buildings

Building values remain relatively stable, fluctuating slightly around the 9,000 million US dollars mark. The value dipped slightly from 9,022 million in 2020 to a low of 8,832 million in 2022, but then recovered to approximately 9,036 million in 2024, indicating minimal additions or disposals.

Machinery and Equipment

Machinery and equipment exhibit a strong upward trend, increasing steadily from 11,153 million US dollars in 2020 to 15,096 million in 2024. This reflects significant ongoing investment in operational assets, with growth accelerating especially in the latter years.

Furniture, Fixtures and Other

This category remained relatively flat between 2020 and 2022, around 4,500 million US dollars, then experienced notable increases to 5,399 million in 2023 and 5,516 million in 2024. The sharp rise indicates recent acquisitions or reclassification of assets in these categories.

Construction in Progress

Construction in progress showed steady growth from 3,552 million US dollars in 2020, peaking at 5,925 million in 2023 before declining to 4,937 million in 2024. This pattern suggests a pipeline of ongoing projects with some completion and capitalization occurring in the final year.

Property, Plant and Equipment, Gross

The total gross value of property, plant, and equipment increased consistently from 28,712 million US dollars in 2020 to a peak of 34,985 million in 2023, followed by a slight decrease to 34,876 million in 2024. This indicates continued asset accumulation with a minor reduction at the end of the period.

Accumulated Depreciation

Accumulated depreciation steadily increased in absolute terms from -14,812 million US dollars in 2020 to -16,483 million in 2024. The growing accumulated depreciation reflects aging assets and regular depreciation charges over the years, slightly accelerating after 2022.

Property, Plant and Equipment, Net

The net property, plant, and equipment value displays a rising trend from 13,900 million US dollars in 2020 to 18,940 million in 2023, with a modest decline to 18,393 million in 2024. This growth implies overall asset base expansion net of depreciation, although the reduction in 2024 may result from increased disposals or depreciation expenses exceeding additions.

The Average Age Ratio of property, plant, and equipment demonstrates a generally decreasing trend over the observed five-year period, indicating a relative renewal or replacement of assets within the company.

Trend Analysis

The ratio decreased from 52.4% at the end of 2020 to 46.33% in 2023, reflecting a continuous decline over the first four years. However, there is a slight increase to 47.66% in 2024.

Implications

This downward trend suggests that the company has been actively managing the age of its fixed assets, potentially investing in newer equipment or disposing of older assets to maintain operational efficiency. The small rise in 2024 could indicate either a slowdown in new investments or the aging of assets acquired in previous periods.

Overall Assessment

Despite the minor uptick in the final year, the overall decline in the average age ratio points to a proactive approach toward asset management, which may support sustained productivity and depreciation management in the long term.

Accumulated Depreciation

The accumulated depreciation increased steadily each year from US$14,812 million in 2020 to US$16,483 million in 2024. This continuous rise indicates ongoing usage and aging of the property, plant, and equipment assets, reflecting systematic depreciation expense recorded annually.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment demonstrated an overall upward trend from US$28,712 million in 2020, reaching a peak at US$34,985 million in 2023. However, there was a slight decline in 2024 to US$34,876 million. This pattern suggests ongoing investments in fixed assets over the initial four years, with a minor reduction or disposals occurring in the last reported year.

Land

The value attributed to land showed a consistent decrease over the period, declining from US$444 million in 2020 to US$291 million in 2024. This steady reduction may indicate asset sales, revaluation, or impairment of land holdings during the five-year span.

Average Age Ratio

The average age ratio, expressed as a percentage, decreased from 52.4% in 2020 to 46.33% in 2023, followed by a slight increase to 47.66% in 2024. This trend suggests that, aside from minor variation, the asset base was generally being refreshed with newer assets or maintenance that lowered the average age of the fixed assets until 2023, after which the average age slightly increased, possibly due to reduced acquisitions or longer retention of existing assets.

Summary

Overall, the data depict a company maintaining and expanding its fixed asset base from 2020 through 2023, as shown by increasing gross property, plant, and equipment values despite ongoing depreciation. The gradual decrease in land value and a declining average age ratio indicate efforts to modernize the asset portfolio. The slight downturn in plant and equipment value and uptick in average age ratio in 2024 suggest a potential slowing in capital investment or asset turnover during that year.