Stock Analysis on Net
Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 2.38% = 0.94% × 2.54
Oct 1, 2023 10.81% = 4.87% × 2.22
Jul 2, 2023 21.68% = 9.75% × 2.22
Apr 2, 2023 28.77% = 14.85% × 1.94
Dec 31, 2022 32.79% = 15.91% × 2.06
Oct 2, 2022 32.14% = 15.32% × 2.10
Jul 3, 2022 33.61% = 15.01% × 2.24
Apr 3, 2022 30.29% = 13.58% × 2.23
Dec 31, 2021 28.47% = 12.11% × 2.35
Oct 3, 2021 26.28% = 11.10% × 2.37
Jul 4, 2021 18.86% = 7.78% × 2.43
Apr 4, 2021 16.23% = 7.01% × 2.31
Dec 31, 2020 15.21% = 6.23% × 2.44
Sep 27, 2020 12.22% = 4.46% × 2.74
Jun 28, 2020 22.05% = 7.97% × 2.77
Mar 29, 2020 24.21% = 9.47% × 2.56
Dec 31, 2019 25.77% = 9.72% × 2.65
Sep 29, 2019 — = — × 2.62
Jun 30, 2019 — = — × 2.62
Mar 31, 2019 — = — × 2.64

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Pfizer Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 2.38% = 3.62% × 0.26 × 2.54
Oct 1, 2023 10.81% = 15.29% × 0.32 × 2.22
Jul 2, 2023 21.68% = 27.55% × 0.35 × 2.22
Apr 2, 2023 28.77% = 31.25% × 0.48 × 1.94
Dec 31, 2022 32.79% = 31.27% × 0.51 × 2.06
Oct 2, 2022 32.14% = 29.81% × 0.51 × 2.10
Jul 3, 2022 33.61% = 28.94% × 0.52 × 2.24
Apr 3, 2022 30.29% = 27.01% × 0.50 × 2.23
Dec 31, 2021 28.47% = 27.04% × 0.45 × 2.35
Oct 3, 2021 26.28% = 28.77% × 0.39 × 2.37
Jul 4, 2021 18.86% = 23.86% × 0.33 × 2.43
Apr 4, 2021 16.23% = 24.03% × 0.29 × 2.31
Dec 31, 2020 15.21% = 22.95% × 0.27 × 2.44
Sep 27, 2020 12.22% = 18.59% × 0.24 × 2.74
Jun 28, 2020 22.05% = 31.31% × 0.25 × 2.77
Mar 29, 2020 24.21% = 32.32% × 0.29 × 2.56
Dec 31, 2019 25.77% = 31.45% × 0.31 × 2.65
Sep 29, 2019 — = — × — × 2.62
Jun 30, 2019 — = — × — × 2.62
Mar 31, 2019 — = — × — × 2.64

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Pfizer Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 0.94% = 3.62% × 0.26
Oct 1, 2023 4.87% = 15.29% × 0.32
Jul 2, 2023 9.75% = 27.55% × 0.35
Apr 2, 2023 14.85% = 31.25% × 0.48
Dec 31, 2022 15.91% = 31.27% × 0.51
Oct 2, 2022 15.32% = 29.81% × 0.51
Jul 3, 2022 15.01% = 28.94% × 0.52
Apr 3, 2022 13.58% = 27.01% × 0.50
Dec 31, 2021 12.11% = 27.04% × 0.45
Oct 3, 2021 11.10% = 28.77% × 0.39
Jul 4, 2021 7.78% = 23.86% × 0.33
Apr 4, 2021 7.01% = 24.03% × 0.29
Dec 31, 2020 6.23% = 22.95% × 0.27
Sep 27, 2020 4.46% = 18.59% × 0.24
Jun 28, 2020 7.97% = 31.31% × 0.25
Mar 29, 2020 9.47% = 32.32% × 0.29
Dec 31, 2019 9.72% = 31.45% × 0.31
Sep 29, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.