Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Pfizer Inc. (NYSE:PFE)

Return on Capital (ROC)

Advanced level

Return on Invested Capital (ROIC)

Pfizer Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 6,095  17,166  12,002  (4,913) 7,602 
Invested capital2 103,898  120,978  101,619  102,850  122,957 
Performance Ratio
ROIC3 5.87% 14.19% 11.81% -4.78% 6.18%
Benchmarks
ROIC, Competitors4
AbbVie Inc. 4.49% 14.72% 15.25% 3.87% 11.87%
Amgen Inc. 20.35% 22.74% 37.39% 6.60% 27.25%
Eli Lilly & Co. 25.89% 22.93% 14.16% -4.90% 13.83%
Gilead Sciences Inc. 1.26% 12.92% 18.88% 21.91% 72.54%
Illumina Inc. 12.08% 19.15% 19.42% 20.55% 15.77%
Johnson & Johnson 13.91% 12.94% 14.38% 3.55% 19.24%
Merck & Co. Inc. 11.66% 18.52% 12.10% 0.69% 5.02%
Regeneron Pharmaceuticals Inc. 44.87% 34.24% 37.16% 29.41% 22.47%
Thermo Fisher Scientific Inc. 10.69% 6.68% 5.62% 1.79% 3.97%
Zoetis Inc. 14.94% 15.96% 15.59% 13.93% 10.88%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 6,095 ÷ 103,898 = 5.87%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Pfizer Inc.’s ROIC improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Decomposition of ROIC

Pfizer Inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2020 5.87% = 19.53% × 0.40 × 74.47%
Dec 31, 2019 14.19% = 35.42% × 0.43 × 93.66%
Dec 31, 2018 11.81% = 23.50% × 0.53 × 95.22%
Dec 31, 2017 -4.78% = 23.75% × 0.51 × -39.36%
Dec 31, 2016 6.18% = 18.27% × 0.43 × 78.77%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Pfizer Inc., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 6,095  17,166  12,002  (4,913) 7,602 
Add: Cash operating taxes2 2,090  1,163  602  17,394  2,049 
Net operating profit before taxes (NOPBT) 8,185  18,328  12,605  12,481  9,650 
 
Revenues 41,908  51,750  53,647  52,546  52,824 
Profitability Ratio
OPM3 19.53% 35.42% 23.50% 23.75% 18.27%
Benchmarks
OPM, Competitors4
AbbVie Inc. 13.66% 30.01% 19.46% 30.71% 34.32%
Amgen Inc. 38.71% 46.69% 50.23% 50.31% 48.00%
Eli Lilly & Co. 30.98% 24.91% 15.94% 9.01% 15.95%
Gilead Sciences Inc. 10.83% 27.94% 41.05% 57.07% 60.31%
Illumina Inc. 19.37% 30.23% 27.22% 39.36% 24.75%
Johnson & Johnson 20.16% 21.00% 22.50% 23.33% 27.69%
Merck & Co. Inc. 19.13% 26.21% 21.47% 17.70% 12.62%
Regeneron Pharmaceuticals Inc. 46.12% 33.76% 38.20% 34.45% 31.23%
Thermo Fisher Scientific Inc. 24.14% 17.60% 15.74% 14.38% 13.87%
Zoetis Inc. 32.90% 31.81% 32.17% 30.87% 25.67%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × 8,185 ÷ 41,908 = 19.53%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Pfizer Inc.’s OPM improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Turnover of Capital (TO)

Pfizer Inc., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Revenues 41,908  51,750  53,647  52,546  52,824 
Invested capital1 103,898  120,978  101,619  102,850  122,957 
Efficiency Ratio
TO2 0.40 0.43 0.53 0.51 0.43
Benchmarks
TO, Competitors3
AbbVie Inc. 0.44 0.53 0.98 0.62 0.53
Amgen Inc. 0.63 0.59 0.89 0.90 0.68
Eli Lilly & Co. 1.00 1.04 0.95 1.02 0.93
Gilead Sciences Inc. 0.48 0.70 0.62 1.06 1.55
Illumina Inc. 0.66 0.71 0.84 0.77 0.83
Johnson & Johnson 0.84 0.85 0.81 0.72 0.85
Merck & Co. Inc. 0.84 0.87 0.86 0.81 0.75
Regeneron Pharmaceuticals Inc. 1.03 1.21 1.08 1.20 1.45
Thermo Fisher Scientific Inc. 0.53 0.48 0.47 0.40 0.42
Zoetis Inc. 0.58 0.64 0.62 0.71 0.72

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).

1 Invested capital. See details »

2 2020 Calculation
TO = Revenues ÷ Invested capital
= 41,908 ÷ 103,898 = 0.40

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Pfizer Inc.’s TO deteriorated from 2018 to 2019 and from 2019 to 2020.

Effective Cash Tax Rate (CTR)

Pfizer Inc., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 6,095  17,166  12,002  (4,913) 7,602 
Add: Cash operating taxes2 2,090  1,163  602  17,394  2,049 
Net operating profit before taxes (NOPBT) 8,185  18,328  12,605  12,481  9,650 
Tax Rate
CTR3 25.53% 6.34% 4.78% 139.36% 21.23%
Benchmarks
CTR, Competitors4
AbbVie Inc. 25.34% 7.43% 19.97% 79.78% 34.90%
Amgen Inc. 15.91% 17.97% 16.67% 85.49% 16.15%
Eli Lilly & Co. 16.37% 11.34% 6.98% 153.07% 6.91%
Gilead Sciences Inc. 76.01% 34.29% 25.67% 63.90% 22.60%
Illumina Inc. 5.55% 10.66% 14.61% 31.76% 23.65%
Johnson & Johnson 17.72% 27.17% 20.74% 78.78% 18.53%
Merck & Co. Inc. 27.35% 19.04% 34.59% 95.19% 47.06%
Regeneron Pharmaceuticals Inc. 5.71% 16.35% 10.01% 28.60% 50.27%
Thermo Fisher Scientific Inc. 15.78% 21.66% 23.84% 69.25% 31.24%
Zoetis Inc. 21.37% 21.17% 22.25% 36.23% 41.44%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,090 ÷ 8,185 = 25.53%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Pfizer Inc.’s CTR increased from 2018 to 2019 and from 2019 to 2020.