Pfizer Inc. (NYSE:PFE)

Current Ratio

The current ratio exhibited moderate fluctuations over the observed periods. Initially, it remained relatively stable around 1.3 to 1.6 until the fourth quarter of 2022, reaching a higher point at 1.59. Subsequently, the ratio declined significantly to 0.91 by the end of 2023, indicating a potential reduction in short-term liquidity. Following this low, the ratio showed gradual improvement, climbing back above 1.0 in early 2024 and reaching approximately 1.26 by mid-2025. This pattern suggests periods of both strengthening and weakening liquidity positions within the timeframe.

Quick Ratio

The quick ratio trends paralleled those of the current ratio but with more pronounced variability. It increased from under 1.0 in early 2021 to a peak of 1.78 by the third quarter of 2023, reflecting improved ability to meet short-term obligations without relying on inventory. However, this was followed by a sharp decrease to 0.5 at the end of 2023, the lowest point observed. Thereafter, the ratio partially recovered, stabilizing around the 0.7 to 0.8 range through mid-2025. Such volatility indicates fluctuating liquid asset availability excluding inventories.

Cash Ratio

The cash ratio demonstrated a generally increasing trend throughout most of the examined quarters until reaching a notable peak of 1.42 in the third quarter of 2023, signifying increased cash and cash equivalents relative to current liabilities. However, a steep decline occurred starting in the fourth quarter of 2023, dropping to 0.27 and remaining low with minor recovery attempts afterwards. By mid-2025, the ratio hovered between 0.35 and 0.48, indicating that the absolute cash liquidity position weakened significantly from its high point. This suggests fluctuations in cash reserves impacting immediate liquidity coverage.

The analysis of quarterly financial data reveals notable fluctuations in the company's liquidity position over the observed periods. Current assets and current liabilities exhibit variability, influencing the current ratio trends significantly.

Current Assets

Current assets display an overall oscillating pattern, beginning at 39,533 million US dollars and peaking at 74,012 million US dollars in October 2023. After reaching this apex, a marked decline ensued, dropping to 37,825 million US dollars by September 2024. Subsequently, current assets show moderate recovery by the end of the period, rising to 46,924 million US dollars in September 2025. These fluctuations reflect short-term shifts in asset management or operating conditions.

Current Liabilities

Current liabilities trend upward initially, from 26,652 million US dollars to 47,794 million US dollars by December 2023. This increase is followed by a decline and stabilization phase, with liabilities hovering around 36,596 million US dollars towards the end of the series. The initial rise may indicate heightened short-term obligations or financing needs, while the subsequent reduction suggests improved liability management or settlement of obligations.

Current Ratio

The current ratio exhibits considerable variability. Early quarters show a relatively stable ratio near 1.4, indicating a comfortable liquidity buffer. A sharp increase occurs around July to October 2023, peaking at 2.38, implying substantial growth in current assets relative to liabilities and indicating stronger liquidity. However, this ratio experiences a steep decline in December 2023 to 0.91, signifying that current liabilities have outpaced current assets, potentially indicating liquidity pressure during this quarter.

Following this trough, the current ratio partially recovers but remains below early period levels in several quarters, fluctuating between 0.86 and 1.28. This volatility suggests intermittent liquidity challenges throughout the latter periods, with the company occasionally maintaining only minimal short-term asset coverage over its current liabilities.

In summary, the financial data expose a pattern of fluctuating liquidity over the quarters. The peak in current assets and current ratio in late 2023 suggests a period of strengthened short-term financial position, quickly followed by considerable stress as current liabilities increased relative to assets. The subsequent partial recovery indicates efforts or external factors contributing to stabilization, though the persistent variability underlines ongoing challenges in maintaining consistent liquidity buffers.

The analysis of the quarterly financial data indicates notable fluctuations in the company's liquidity position over the observed periods. The total quick assets demonstrate a pattern of initial growth followed by periods of decline and intermittent recovery. Starting from a base of approximately $23.5 billion in the first quarter of 2021, quick assets peaked around $55 billion in mid-2023 before experiencing a sharp decrease and subsequent volatility through 2024 and into 2025.

Current liabilities similarly exhibit variability, with values increasing from approximately $26.7 billion in early 2021 to a high of nearly $47.8 billion towards the end of 2023. After this peak, liabilities generally stabilize and slightly decrease but remain elevated compared to the earlier part of the period.

The quick ratio, which measures the company's ability to meet short-term obligations with its most liquid assets, reflects these asset and liability movements. Initially below 1.0, the ratio shows a gradual improvement through 2021 and peaks significantly above 1.5 during 2023, indicating a strong liquidity position during that period. However, from late 2023 onward, the quick ratio deteriorates sharply to as low as 0.42, demonstrating a weakening liquidity stance. Although some improvement is observed in 2025, the ratio does not return to prior peak levels, signaling continuing pressure on short-term financial stability.

Total Quick Assets

Experienced growth through 2021 and 2022, with a peak in mid-2023, followed by pronounced decreases and fluctuations through 2024 and 2025.

Current Liabilities

Showed an upward trajectory during 2021-2023, reaching a maximum in late 2023, then marginally declining yet remaining high relative to earlier periods.

Quick Ratio

Initially modest but improving through the first two years, sharply rising in 2023 to strong liquidity territory, then declining substantially from late 2023 onwards, indicating challenges in maintaining liquid asset coverage over current liabilities.

The overall trend suggests that while liquidity improved significantly up to mid-2023, the subsequent period was marked by increased financial strain, with quick assets not keeping pace with rising or sustained current liabilities. This development points to potential short-term liquidity management concerns that warrant attention to ensure the company maintains an adequate cushion against current liabilities in future quarters.

The company’s financial position demonstrated notable fluctuations in liquidity and short-term obligations over the analyzed periods.

Total Cash Assets

Total cash assets exhibited a generally volatile trajectory. Starting at $13,667 million, cash holdings increased, peaking at $44,785 million in July 2023 before sharply declining to lower levels around $7,100 to $12,000 million in late 2023 and early 2024. Subsequently, cash assets again rose to approximately $20,000 million by early 2025 but declined once more towards the latter quarters, ending near $15,000 million. This volatility reflects significant changes in cash management or cash flows from operations and financing activities throughout the periods.

Current Liabilities

Current liabilities remained relatively high across all quarters but with a declining trend in some recent periods. Early values hovered around $26,652 to $47,410 million with peaks in mid-2022 and early 2024, particularly a notable spike to $47,794 million at the end of 2023. Recent quarters showed a decrease to a range between approximately $35,000 and $37,000 million by late 2025, indicating potentially improved management of short-term obligations or reduction in short-term debt or payables.

Cash Ratio

The cash ratio, indicating the ability to cover current liabilities with cash alone, showed corresponding volatility aligned with changes in cash assets and liabilities. Ratios started below 1 (0.51), climbed to a peak of 1.42 in October 2023 indicating high liquidity, followed by a steep decline to between 0.16 and 0.29 from late 2023 into early 2024. The ratio partially rebounded to nearly 0.5 by early 2025 but remained below historical peaks, pointing toward reduced immediate liquidity relative to current liabilities.

Insights

The overall liquidity profile of the company showed significant variability with periods of strong cash holdings and liquidity ratios well above 1, suggesting robust capacity to meet short-term obligations at certain points. However, these were interspersed with quarters where the cash ratio fell substantially below 0.5, signaling stretched liquidity conditions. The decreases in both cash and cash ratios during late 2023 and early 2024 warrant attention as they may imply either higher cash outflows, increased liabilities, or changes in working capital management. The subsequent gradual stabilization in cash and current liabilities may suggest corrective actions to restore liquidity balance.