Pfizer Inc. (NYSE:PFE)

Return on Assets (ROA)

The ROA demonstrated a generally upward trajectory from April 2021 through December 2022, increasing from 7.01% to a peak of 15.91%. This indicates improving efficiency in asset utilization over this period. However, starting in April 2023, a pronounced decline is observable, reaching a low of -1.20% by June 2024. Following this trough, the ROA showed signs of recovery, rising to 5.22% by September 2025, although it did not return to its previous highs.

Financial Leverage

Financial leverage ratios exhibited moderate fluctuations over the observed periods. The ratio decreased gradually from 2.31 in April 2021 to 1.94 by April 2023, suggesting a reduction in reliance on debt relative to equity or assets. Subsequently, leverage rose again, peaking at 2.54 in December 2023, before stabilizing around the 2.3 level through September 2025. The variations in leverage imply shifts in capital structure strategies or external financing conditions.

Return on Equity (ROE)

The ROE trend closely parallels the ROA movements but with higher magnitude, reflecting the amplified impact of leverage on equity returns. ROE increased sharply from 16.23% in April 2021 to a peak of 33.61% in July 2022. Following this peak, a decline ensued, bottoming at -2.96% in June 2024. A recovery phase began thereafter, with ROE improving to approximately 12.12% by September 2025. This pattern aligns with the fluctuations in both asset profitability and financial leverage over the periods.

Overall Observations

The initial period showed strengthening profitability and efficient asset use, supported by relatively stable and moderately decreasing leverage. The marked downturn post-April 2023 is indicative of challenges affecting profitability, possibly operational or market-related, compounded by variability in leverage. The recovery in latter periods suggests corrective measures or improved conditions. The variations in ROE, influenced by both asset returns and leverage, highlight the importance of capital structure management during volatile earnings periods.

The analysis of the financial ratios over the reported periods reveals notable patterns and fluctuations in profitability, efficiency, and leverage metrics.

Net Profit Margin

The net profit margin demonstrated an overall increasing trend from approximately 24.03% in the earliest period to a peak near 31.27% toward the end of 2022. Subsequently, a pronounced decline occurred throughout 2023, reaching a negative margin of -4.62% in mid-2024. Recovery was observed thereafter, with the margin improving back to approximately 15.65% by mid-2025. This volatility indicates significant variability in profitability, potentially influenced by cost structure changes, market conditions, or extraordinary items during 2023 and early 2024.

Asset Turnover

Asset turnover ratios reflected growth from 0.29 to a peak around 0.52 in mid-2022, indicating improved asset utilization to generate revenue. Afterward, a gradual decline took place, bottoming around 0.25 during early 2024, followed by a slight recovery stabilizing near 0.30 towards mid-2025. This pattern suggests efficiency gains initially that were later partially reversed, possibly due to increased asset bases or decreased sales volumes.

Financial Leverage

Financial leverage ratios showed moderate fluctuations, starting around 2.31 and slightly rising to 2.43 early in the data series. A downward shift to approximately 1.94 was notable by early 2023, indicating reduced reliance on debt or equity amplification effects. However, leverage increased again, peaking near 2.54 in late 2023, and then stabilized around 2.30 by mid-2025. These changes may reflect strategic capital structure adjustments in response to operational or market conditions.

Return on Equity (ROE)

ROE experienced significant variation, increasing markedly from 16.23% to above 33% by mid-2022, reflecting strong profitability and efficient use of shareholder equity. A sharp decline ensued through 2023, dropping to around -2.96% in early 2024, correlating with the fall in net profit margin and asset turnover. Subsequent recovery brought ROE back to approximately 10.59% by mid-2025, indicating an eventual return to positive equity returns but not yet reaching earlier highs. This volatility underscores the impact of the firm's operational challenges and recovery efforts during the period.

In summary, the data indicate a phase of strong operational and financial performance up to late 2022 followed by considerable disruption in 2023 and early 2024, evidenced by declines in profitability, efficiency, and returns. The partial recovery in the most recent periods suggests improving conditions but also highlights ongoing challenges to fully regain prior performance levels.

The analysis of the quarterly financial data reveals distinct trends in profitability and efficiency metrics over the observed periods.

Net Profit Margin (%)

The net profit margin exhibited an overall increasing trend from early 2021 through the end of 2022, rising from approximately 24.03% to a peak of 31.27% in December 2022. However, starting in 2023, there was a marked decline, with the margin dropping sharply to single digits and even turning negative in certain quarters (notably -0.55% and -4.62%). The margin began to recover towards the end of 2024 and into 2025, reaching around 15.65% by the third quarter of 2025. This pattern suggests a period of strong profitability followed by significant challenges, and then gradual improvement.

Asset Turnover (ratio)

Asset turnover increased steadily from 0.29 in April 2021 to a peak of 0.52 in July 2022, indicating improving efficiency in using assets to generate sales. After mid-2022, however, the ratio declined consistently, reaching a low of approximately 0.25 in late 2024. Thereafter, a moderate recovery was observed, with the ratio stabilizing around 0.30 by mid to late 2025. This trajectory reflects fluctuating operational efficiency, with notable degradation during 2023 and some recovery thereafter.

Return on Assets (ROA) (%)

The ROA trend closely parallels the patterns observed in net profit margin and asset turnover, starting at 7.01% in early 2021 and rising steadily to nearly 16% by the end of 2022. In 2023, ROA declined sharply, even turning negative for some quarters, mirroring the challenged profitability and efficiency during this period. Recovery began in late 2024, with ROA increasing gradually, reaching approximately 4.71% by the third quarter of 2025. This suggests the company faced significant operational and profitability pressures in 2023, followed by incremental improvements.

In summary, the data indicates that the company experienced robust financial performance and operational efficiency through 2021 and 2022. The fiscal year 2023 was marked by a downturn across key financial metrics, reflecting lower profitability and reduced asset utilization. Starting in late 2024, these indicators show signs of recovery, although levels in 2025 remain below the peak values seen in 2022. Continuous monitoring and strategic adjustments may be warranted to sustain the positive momentum observed in the latter periods.