Pfizer Inc. (NYSE:PFE)

The analysis of the quarterly financial ratios reveals distinct patterns in profitability and leverage over the observed periods.

Return on Assets (ROA)

ROA shows a general upward trend from 6.23% in early 2020 to a peak of approximately 15.91% by late 2022, indicating improving efficiency in asset utilization. Subsequently, there is a sharp decline starting in late 2022, falling to negative values by the end of 2023, reaching as low as -1.2%. The ratio begins to recover in 2024, returning to positive territory and ending at 5.22% by mid-2025. This pattern suggests periods of strong asset profit generation, followed by challenges or extraordinary factors impacting assets' effectiveness before a gradual recovery.

Financial Leverage

Financial leverage ratios remained relatively stable throughout the timeline, fluctuating between a ratio of about 1.94 and 2.77. Starting around 2.56 in early 2020, leverage generally trends downward until early 2023, bottoming near 1.94, suggesting a reduction in relative debt or liabilities. However, it rises again moderately in late 2023 through 2025, stabilizing near 2.3 by mid-2025. This indicates prudent management of debt levels with moderate variations.

Return on Equity (ROE)

ROE experienced an increase from 15.21% in early 2020, peaking significantly at 33.61% in late 2022, signifying strong shareholder value creation during this period. After this peak, ROE declines sharply to negative values in late 2023, reaching approximately -2.96%, mirroring the drop in ROA and signaling diminished profitability or equity base challenges. In 2024 and 2025, ROE recovers steadily but remains below prior peaks, closing at around 12.12% by mid-2025. The movement closely aligns with ROA trends, reflecting variability in overall profitability and equity returns.

In summary, the financial ratios indicate an initial phase of improving profitability and efficient asset use up to late 2022, followed by a period of downturn with negative returns on assets and equity through late 2023. Financial leverage remained generally controlled, with no extreme increases or decreases. Recovery in profitability metrics during 2024 and 2025 suggests stabilization and a return to growth, though not yet reaching the highs observed prior to the decline.

Net Profit Margin

The net profit margin demonstrated a strong upward trend starting from 22.95% in the fourth quarter of 2020, reaching a peak of 31.27% by the second quarter of 2023. Subsequently, there was a pronounced decline in profitability, with the margin falling sharply to -4.62% by the fourth quarter of 2024. However, this negative trend reversed thereafter, with profitability improving steadily to 16.84% by the second quarter of 2025. This pattern indicates a period of robust profitability followed by significant challenges impacting earnings, and a gradual recovery in recent periods.

Asset Turnover

Asset turnover increased consistently from 0.27 in the fourth quarter of 2020, peaking at 0.52 in the third quarter of 2022, reflecting improved efficiency in asset utilization. From late 2022 onward, the ratio declined to 0.25 by the fourth quarter of 2023, before stabilizing and slightly increasing to around 0.31 by mid-2025. This trend suggests initial gains in operational efficiency followed by a period of reduced effectiveness in generating revenue from assets, with modest recovery emerging toward the end of the observed timeline.

Financial Leverage

Financial leverage ratios exhibited moderate fluctuations over the period. Starting at 2.56 in the first quarter of 2020, leverage remained relatively stable around the mid-2 range, with minor variations including a slight dip to 1.94 in the first quarter of 2023 and an increase to 2.54 in the fourth quarter of 2023. From 2024 onward, leverage ratios generally hovered between 2.3 and 2.42. These movements indicate consistent use of debt or financial obligations with no extreme deviations, signaling a stable approach to capital structure management.

Return on Equity (ROE)

ROE followed a trajectory similar to net profit margin, increasing from 15.21% in the fourth quarter of 2020 to a peak of 33.61% by the third quarter of 2022. Post-peak, a marked decline occurred, with ROE dropping sharply to -2.96% by the fourth quarter of 2024. Subsequently, the indicator showed signs of recovery, rising to 12.12% by mid-2025. This fluctuation reflects a period of strong shareholder returns followed by considerable losses, and a gradual improvement in return generation capacity.

Net Profit Margin

The net profit margin shows an overall fluctuating pattern during the observed periods. Starting from 22.95% in the first available quarter, it steadily increased to a peak of 31.27% by early 2023. Subsequently, a noticeable decline occurred, reaching a low of -4.62% by the fourth quarter of 2024. After this trough, the margin recovered to 16.84% by mid-2025. This indicates periods of strong profitability interspersed with significant challenges impacting profitability around 2024, followed by a partial recovery.

Asset Turnover

Asset turnover exhibited an upward trend from 0.27 at the start of the data to a peak of 0.52 by late 2022, reflecting increased efficiency in utilizing assets to generate revenue. However, this efficiency decreased sharply afterwards, reaching approximately 0.25 by the third quarter of 2024. From this lowest point, a gradual improvement resumed, climbing back to 0.31 by mid-2025. The initial growth suggests better operational efficiency, which was compromised during the middle period but has shown signs of recovery.

Return on Assets (ROA)

Return on assets mirrored the trends seen in net profit margin and asset turnover with initial growth from 6.23% to a peak of 15.91% in 2023, indicating increasing profitability relative to asset base. This was followed by a steep decline to below zero (-1.2%) by late 2024, signalling a period of inefficiency or losses in asset utilization. The subsequent quarter showed slight recovery, with ROA rising to around 5.22% by mid-2025. These fluctuations highlight volatility in asset profitability, reflecting external pressures or internal operational challenges during the period analyzed.