Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Pfizer Inc., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Solvency ratios demonstrate a shifting financial risk profile over the five-year period. Initially, the company exhibited relatively stable leverage metrics, followed by a period of increased debt reliance and subsequent stabilization. A notable decline in earnings coverage of fixed charges occurred in 2023, followed by a partial recovery.
- Debt Ratios
- Debt to equity, debt to capital, and debt to assets all increased significantly in 2023. Debt to equity rose from 0.37 in 2022 to 0.81 in 2023, and debt to capital increased from 0.27 to 0.45 over the same period. Debt to assets followed a similar pattern, increasing from 0.18 to 0.32. These ratios then stabilized between 2024 and 2025, fluctuating within a narrow range. Inclusion of operating lease liabilities consistently results in slightly higher ratio values across all years.
- Leverage Ratios
- Financial leverage exhibited a similar trend to the debt ratios, increasing from 2.06 in 2022 to 2.54 in 2023 before stabilizing around 2.42 in 2024 and 2.41 in 2025. This indicates a greater reliance on debt financing in 2023, followed by a period of relative consistency.
- Coverage Ratios
- Interest coverage and fixed charge coverage ratios experienced a substantial decrease in 2023. Interest coverage plummeted from 29.05 in 2022 to 1.48 in 2023, while fixed charge coverage fell from 18.79 to 1.34. These declines suggest a significantly reduced ability to meet interest and fixed financing obligations in 2023. Both ratios showed improvement in 2024 and 2025, reaching 3.60 and 3.13 respectively for interest coverage, and 3.13 and 3.37 for fixed charge coverage, but remained below their 2022 levels.
The observed increases in debt ratios in 2023, coupled with the concurrent decline in coverage ratios, suggest a period of increased financial risk. The subsequent stabilization of debt ratios and partial recovery in coverage ratios in 2024 and 2025 indicate a potential stabilization of the financial position, although coverage remains lower than prior to 2023.
Debt Ratios
Coverage Ratios
Debt to Equity
Pfizer Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Total Pfizer Inc. shareholders’ equity | 86,476) | 88,203) | 89,014) | 95,661) | 77,201) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.75 | 0.73 | 0.81 | 0.37 | 0.50 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | 20.19 | 5.73 | 3.67 | 4.98 | |
| Amgen Inc. | 6.31 | 10.23 | 10.37 | 10.64 | 4.97 | |
| Bristol-Myers Squibb Co. | 2.44 | 3.04 | 1.35 | 1.27 | 1.24 | |
| Danaher Corp. | 0.35 | 0.32 | 0.34 | 0.39 | 0.49 | |
| Eli Lilly & Co. | 1.60 | 2.37 | 2.34 | 1.52 | 1.88 | |
| Gilead Sciences Inc. | 1.10 | 1.38 | 1.09 | 1.19 | 1.27 | |
| Johnson & Johnson | 0.59 | 0.51 | 0.43 | 0.52 | 0.46 | |
| Merck & Co. Inc. | 0.94 | 0.80 | 0.93 | 0.67 | 0.87 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.12 | 0.14 | |
| Thermo Fisher Scientific Inc. | 0.74 | 0.63 | 0.75 | 0.78 | 0.85 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.02 | 1.04 | 0.97 | 0.80 | 0.93 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.86 | 0.87 | 0.82 | 0.72 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Total Pfizer Inc. shareholders’ equity
= 64,795 ÷ 86,476 = 0.75
2 Click competitor name to see calculations.
The Debt-to-Equity ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio decreased, then increased substantially before stabilizing. This suggests a shift in the company’s capital structure and financing strategies.
- Debt-to-Equity Ratio Trend
- In 2021, the Debt-to-Equity ratio stood at 0.50. A decrease was observed in 2022, with the ratio falling to 0.37, indicating a reduced reliance on debt financing relative to equity.
- However, 2023 witnessed a significant increase, with the ratio rising to 0.81. This represents a substantial increase in leverage, suggesting a greater proportion of debt was used to finance assets compared to equity. This could be due to acquisitions, increased borrowing for operations, or a decrease in shareholder equity.
- The ratio experienced a moderate decline in 2024, settling at 0.73, and remained relatively stable in 2025 at 0.75. This suggests that while leverage remained elevated compared to 2021 and 2022 levels, the company did not significantly increase its debt burden further during these periods.
The substantial increase in the Debt-to-Equity ratio in 2023 warrants further investigation to understand the underlying reasons. While the subsequent stabilization in 2024 and 2025 indicates a potential pause in increasing leverage, the ratio remains considerably higher than its levels in the earlier part of the observed period.
- Total Debt and Equity Movements
- Total debt decreased from US$38,436 million in 2021 to US$35,829 million in 2022, aligning with the initial decrease in the Debt-to-Equity ratio. However, it then rose significantly to US$71,888 million in 2023, driving the ratio upward.
- Total shareholders’ equity increased from US$77,201 million in 2021 to US$95,661 million in 2022, contributing to the lower Debt-to-Equity ratio. Subsequently, equity decreased to US$89,014 million in 2023, and continued to decline modestly to US$86,476 million by 2025, partially explaining the sustained higher ratio.
The interplay between changes in total debt and total equity is crucial in understanding the observed trends in the Debt-to-Equity ratio. The increase in debt coupled with the decrease in equity from 2022 to 2025 contributed to the elevated leverage position.
Debt to Equity (including Operating Lease Liability)
Pfizer Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Operating lease liabilities, short-term (included in Other current liabilities) | 330) | 356) | 527) | 620) | 449) | |
| Operating lease liabilities, long-term (included in Other noncurrent liabilities) | 2,291) | 2,286) | 2,626) | 2,597) | 2,510) | |
| Total debt (including operating lease liability) | 67,416) | 66,993) | 75,041) | 39,046) | 41,395) | |
| Total Pfizer Inc. shareholders’ equity | 86,476) | 88,203) | 89,014) | 95,661) | 77,201) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.78 | 0.76 | 0.84 | 0.41 | 0.54 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 20.46 | 5.82 | 3.72 | 5.03 | |
| Amgen Inc. | 6.40 | 10.36 | 10.50 | 10.83 | 5.07 | |
| Bristol-Myers Squibb Co. | 2.55 | 3.13 | 1.41 | 1.31 | 1.27 | |
| Danaher Corp. | 0.37 | 0.35 | 0.37 | 0.41 | 0.52 | |
| Eli Lilly & Co. | 1.65 | 2.45 | 2.44 | 1.59 | 1.96 | |
| Gilead Sciences Inc. | 1.13 | 1.41 | 1.12 | 1.22 | 1.30 | |
| Johnson & Johnson | 0.60 | 0.53 | 0.44 | 0.53 | 0.47 | |
| Merck & Co. Inc. | 0.96 | 0.83 | 0.97 | 0.70 | 0.91 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.10 | 0.11 | 0.12 | 0.15 | |
| Thermo Fisher Scientific Inc. | 0.76 | 0.66 | 0.78 | 0.82 | 0.89 | |
| Vertex Pharmaceuticals Inc. | 0.11 | 0.11 | 0.05 | 0.06 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.05 | 1.07 | 1.00 | 0.83 | 0.96 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 0.90 | 0.85 | 0.76 | 0.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Pfizer Inc. shareholders’ equity
= 67,416 ÷ 86,476 = 0.78
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liability, exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased, then increased substantially before stabilizing. Total debt, inclusive of operating lease liabilities, demonstrated an initial decline followed by a significant rise and subsequent moderate decrease. Simultaneously, total shareholders’ equity increased initially, then experienced a decline over the latter portion of the period.
- Debt to Equity Ratio Trend
- The debt to equity ratio began at 0.54 in 2021 and decreased to 0.41 in 2022, indicating a reduced reliance on debt financing relative to equity. However, the ratio increased markedly to 0.84 in 2023, suggesting a substantial increase in debt levels compared to equity. This trend continued, albeit at a slower pace, with the ratio remaining at 0.76 in 2024 and 0.78 in 2025, indicating a sustained, though somewhat stabilized, higher level of debt financing.
- Total Debt Evolution
- Total debt, including operating lease liability, decreased from US$41,395 million in 2021 to US$39,046 million in 2022. A significant increase was then observed, with debt rising to US$75,041 million in 2023. Subsequently, debt decreased modestly to US$66,993 million in 2024 and remained relatively stable at US$67,416 million in 2025. This pattern suggests a period of increased borrowing followed by a period of moderate debt reduction.
- Shareholders’ Equity Movement
- Total shareholders’ equity increased from US$77,201 million in 2021 to US$95,661 million in 2022. However, equity then decreased to US$89,014 million in 2023, and continued to decline to US$88,203 million in 2024 and US$86,476 million in 2025. This indicates a reversal of the initial equity growth, with a consistent decline observed in the latter years of the period.
The combined effect of increasing debt and decreasing equity from 2022 to 2025 resulted in the observed increase in the debt to equity ratio. The stabilization of the ratio in the final two years suggests a potential leveling off of debt accumulation relative to equity reduction.
Debt to Capital
Pfizer Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Total Pfizer Inc. shareholders’ equity | 86,476) | 88,203) | 89,014) | 95,661) | 77,201) | |
| Total capital | 151,271) | 152,554) | 160,902) | 131,490) | 115,637) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.43 | 0.42 | 0.45 | 0.27 | 0.33 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.91 | 0.83 | |
| Bristol-Myers Squibb Co. | 0.71 | 0.75 | 0.57 | 0.56 | 0.55 | |
| Danaher Corp. | 0.26 | 0.24 | 0.26 | 0.28 | 0.33 | |
| Eli Lilly & Co. | 0.62 | 0.70 | 0.70 | 0.60 | 0.65 | |
| Gilead Sciences Inc. | 0.52 | 0.58 | 0.52 | 0.54 | 0.56 | |
| Johnson & Johnson | 0.37 | 0.34 | 0.30 | 0.34 | 0.31 | |
| Merck & Co. Inc. | 0.48 | 0.44 | 0.48 | 0.40 | 0.46 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.42 | 0.39 | 0.43 | 0.44 | 0.46 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.51 | 0.49 | 0.44 | 0.48 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.47 | 0.45 | 0.42 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 64,795 ÷ 151,271 = 0.43
2 Click competitor name to see calculations.
The Debt to Capital ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio decreased, then increased substantially before stabilizing. This suggests a changing reliance on debt financing relative to the company’s overall capital structure.
- Debt to Capital Ratio - Overall Trend
- The ratio began at 0.33 in 2021, indicating that 33% of the company’s capital was financed by debt. It decreased to 0.27 in 2022, suggesting a reduction in debt relative to capital. However, a significant increase occurred in 2023, with the ratio rising to 0.45. This represents a substantial shift towards greater debt financing. The ratio then moderated slightly to 0.42 in 2024 and remained relatively stable at 0.43 in 2025.
- Debt to Capital Ratio - Key Observations
- The most notable change is the increase in the ratio from 2022 to 2023. This suggests a significant increase in total debt, potentially due to acquisitions, increased borrowing for operations, or other financing activities. The subsequent stabilization in 2024 and 2025 indicates that the company has maintained this higher level of debt financing without further substantial increases.
The observed trend warrants further investigation into the underlying reasons for the increase in debt in 2023 and the company’s strategy for managing its capital structure going forward. The consistent ratio between 2024 and 2025 suggests a period of consolidation regarding debt levels.
Debt to Capital (including Operating Lease Liability)
Pfizer Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Operating lease liabilities, short-term (included in Other current liabilities) | 330) | 356) | 527) | 620) | 449) | |
| Operating lease liabilities, long-term (included in Other noncurrent liabilities) | 2,291) | 2,286) | 2,626) | 2,597) | 2,510) | |
| Total debt (including operating lease liability) | 67,416) | 66,993) | 75,041) | 39,046) | 41,395) | |
| Total Pfizer Inc. shareholders’ equity | 86,476) | 88,203) | 89,014) | 95,661) | 77,201) | |
| Total capital (including operating lease liability) | 153,892) | 155,196) | 164,055) | 134,707) | 118,596) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.44 | 0.43 | 0.46 | 0.29 | 0.35 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.92 | 0.84 | |
| Bristol-Myers Squibb Co. | 0.72 | 0.76 | 0.58 | 0.57 | 0.56 | |
| Danaher Corp. | 0.27 | 0.26 | 0.27 | 0.29 | 0.34 | |
| Eli Lilly & Co. | 0.62 | 0.71 | 0.71 | 0.61 | 0.66 | |
| Gilead Sciences Inc. | 0.53 | 0.59 | 0.53 | 0.55 | 0.56 | |
| Johnson & Johnson | 0.38 | 0.35 | 0.31 | 0.35 | 0.32 | |
| Merck & Co. Inc. | 0.49 | 0.45 | 0.49 | 0.41 | 0.48 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.40 | 0.44 | 0.45 | 0.47 | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.10 | 0.04 | 0.06 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.51 | 0.52 | 0.50 | 0.45 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.47 | 0.46 | 0.43 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 67,416 ÷ 153,892 = 0.44
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, demonstrates a fluctuating pattern over the five-year period. Initial observations indicate a decrease followed by an increase, then a stabilization around a higher level than the initial value.
- Overall Trend
- The ratio began at 0.35 in 2021, decreased to 0.29 in 2022, and then increased significantly to 0.46 in 2023. Subsequent years show a slight decrease to 0.43 in 2024 and a further slight decrease to 0.44 in 2025, indicating a leveling off after the substantial increase.
- Debt Component
- Total debt, including operating lease liability, decreased from US$41,395 million in 2021 to US$39,046 million in 2022. A substantial increase is then observed, reaching US$75,041 million in 2023. This is followed by reductions to US$66,993 million in 2024 and US$67,416 million in 2025, suggesting the 2023 increase was not sustained.
- Capital Component
- Total capital, inclusive of operating lease liability, increased from US$118,596 million in 2021 to US$134,707 million in 2022. Continued growth is seen in 2023, reaching US$164,055 million. Capital then decreased to US$155,196 million in 2024 and US$153,892 million in 2025, mirroring the trend observed in debt, but to a lesser extent.
The increase in the Debt to Capital ratio in 2023 is primarily driven by the significant rise in total debt. While capital also increased, the debt increase outpaced it. The subsequent stabilization in the ratio from 2024 to 2025 suggests a more balanced approach to debt and capital management during those periods, although the ratio remains higher than its initial level in 2021.
Debt to Assets
Pfizer Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Total assets | 208,160) | 213,396) | 226,501) | 197,205) | 181,476) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.31 | 0.30 | 0.32 | 0.18 | 0.21 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.50 | 0.44 | 0.46 | 0.52 | |
| Amgen Inc. | 0.60 | 0.65 | 0.67 | 0.60 | 0.54 | |
| Bristol-Myers Squibb Co. | 0.50 | 0.54 | 0.42 | 0.41 | 0.41 | |
| Danaher Corp. | 0.22 | 0.21 | 0.22 | 0.23 | 0.27 | |
| Eli Lilly & Co. | 0.38 | 0.43 | 0.39 | 0.33 | 0.35 | |
| Gilead Sciences Inc. | 0.42 | 0.45 | 0.40 | 0.40 | 0.39 | |
| Johnson & Johnson | 0.24 | 0.20 | 0.18 | 0.21 | 0.19 | |
| Merck & Co. Inc. | 0.36 | 0.32 | 0.33 | 0.28 | 0.31 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.36 | 0.32 | 0.35 | 0.35 | 0.37 | |
| Vertex Pharmaceuticals Inc. | 0.00 | 0.01 | 0.02 | 0.03 | 0.04 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.35 | 0.35 | 0.34 | 0.31 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.32 | 0.30 | 0.28 | 0.30 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 64,795 ÷ 208,160 = 0.31
2 Click competitor name to see calculations.
The Debt-to-Assets ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio decreased, followed by a substantial increase, and then stabilized at a relatively high level.
- Overall Trend
- The Debt-to-Assets ratio began at 0.21 in 2021, decreasing to 0.18 in 2022. A significant increase was then observed, rising to 0.32 in 2023. The ratio subsequently moderated slightly, settling at 0.30 in 2024 and 0.31 in 2025.
- Year-over-Year Changes
- From 2021 to 2022, the ratio decreased by 0.03, indicating a reduction in the proportion of assets financed by debt. However, from 2022 to 2023, the ratio increased substantially by 0.14, suggesting a significant increase in debt relative to assets. The change from 2023 to 2024 was a decrease of 0.02, and from 2024 to 2025, an increase of 0.01.
- Ratio Levels
- The ratio remained below 0.25 for the first two years of the observed period. The substantial increase in 2023 brought the ratio above 0.30, where it remained for the subsequent two years. This suggests a shift towards greater reliance on debt financing during and after 2023.
The stabilization of the ratio around 0.30-0.31 in the final two years suggests a potential plateau in the company’s debt strategy, although the level remains considerably higher than in 2021 and 2022.
Debt to Assets (including Operating Lease Liability)
Pfizer Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings, including current portion of long-term debt | 3,154) | 6,946) | 10,350) | 2,945) | 2,241) | |
| Long-term debt, excluding current portion | 61,641) | 57,405) | 61,538) | 32,884) | 36,195) | |
| Total debt | 64,795) | 64,351) | 71,888) | 35,829) | 38,436) | |
| Operating lease liabilities, short-term (included in Other current liabilities) | 330) | 356) | 527) | 620) | 449) | |
| Operating lease liabilities, long-term (included in Other noncurrent liabilities) | 2,291) | 2,286) | 2,626) | 2,597) | 2,510) | |
| Total debt (including operating lease liability) | 67,416) | 66,993) | 75,041) | 39,046) | 41,395) | |
| Total assets | 208,160) | 213,396) | 226,501) | 197,205) | 181,476) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.32 | 0.31 | 0.33 | 0.20 | 0.23 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.51 | 0.50 | 0.45 | 0.46 | 0.53 | |
| Amgen Inc. | 0.61 | 0.66 | 0.67 | 0.61 | 0.56 | |
| Bristol-Myers Squibb Co. | 0.52 | 0.55 | 0.44 | 0.42 | 0.42 | |
| Danaher Corp. | 0.24 | 0.22 | 0.23 | 0.25 | 0.28 | |
| Eli Lilly & Co. | 0.39 | 0.44 | 0.41 | 0.34 | 0.36 | |
| Gilead Sciences Inc. | 0.43 | 0.46 | 0.41 | 0.41 | 0.40 | |
| Johnson & Johnson | 0.25 | 0.21 | 0.18 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.37 | 0.33 | 0.34 | 0.29 | 0.33 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.34 | 0.37 | 0.37 | 0.38 | |
| Vertex Pharmaceuticals Inc. | 0.08 | 0.08 | 0.04 | 0.05 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | 0.37 | 0.35 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.32 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 67,416 ÷ 208,160 = 0.32
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liability, demonstrates a fluctuating pattern over the five-year period. Initially, the ratio decreased before increasing substantially, then stabilizing. A review of the underlying components – total debt and total assets – provides further context for these movements.
- Debt to Assets Ratio – Overall Trend
- The debt to assets ratio began at 0.23 in 2021, decreasing to 0.20 in 2022. A significant increase was then observed in 2023, rising to 0.33. This upward trend moderated in subsequent years, with the ratio decreasing slightly to 0.31 in 2024 and remaining relatively stable at 0.32 in 2025.
- Total Debt
- Total debt decreased from US$41,395 million in 2021 to US$39,046 million in 2022. However, it experienced a substantial increase in 2023, reaching US$75,041 million. Subsequently, total debt decreased to US$66,993 million in 2024 and remained approximately constant at US$67,416 million in 2025.
- Total Assets
- Total assets increased from US$181,476 million in 2021 to US$197,205 million in 2022, and continued to grow to US$226,501 million in 2023. A decrease was then observed in 2024, with total assets falling to US$213,396 million, followed by a further decrease to US$208,160 million in 2025.
The substantial increase in the debt to assets ratio in 2023 is primarily attributable to the significant rise in total debt, despite a concurrent increase in total assets. The stabilization of the ratio in 2024 and 2025 suggests that while debt levels remained elevated, the decrease in total assets did not lead to a further increase in the ratio. The interplay between debt and asset fluctuations is the primary driver of the observed trend.
Financial Leverage
Pfizer Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 208,160) | 213,396) | 226,501) | 197,205) | 181,476) | |
| Total Pfizer Inc. shareholders’ equity | 86,476) | 88,203) | 89,014) | 95,661) | 77,201) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.41 | 2.42 | 2.54 | 2.06 | 2.35 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | 40.65 | 13.00 | 8.04 | 9.51 | |
| Amgen Inc. | 10.46 | 15.63 | 15.59 | 17.79 | 9.13 | |
| Bristol-Myers Squibb Co. | 4.87 | 5.67 | 3.23 | 3.12 | 3.04 | |
| Danaher Corp. | 1.59 | 1.57 | 1.58 | 1.68 | 1.84 | |
| Eli Lilly & Co. | 4.24 | 5.55 | 5.94 | 4.65 | 5.44 | |
| Gilead Sciences Inc. | 2.60 | 3.05 | 2.72 | 2.97 | 3.23 | |
| Johnson & Johnson | 2.44 | 2.52 | 2.44 | 2.44 | 2.46 | |
| Merck & Co. Inc. | 2.60 | 2.53 | 2.84 | 2.37 | 2.77 | |
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.29 | 1.27 | 1.29 | 1.36 | |
| Thermo Fisher Scientific Inc. | 2.07 | 1.96 | 2.11 | 2.21 | 2.33 | |
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.29 | 1.30 | 1.33 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.87 | 2.93 | 2.85 | 2.62 | 2.86 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.72 | 2.75 | 2.70 | 2.57 | 2.69 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Total Pfizer Inc. shareholders’ equity
= 208,160 ÷ 86,476 = 2.41
2 Click competitor name to see calculations.
An examination of the financial information reveals trends in the company’s financial leverage over a five-year period. Total assets increased from 2021 to 2023, then decreased in 2024 and 2025, while total shareholders’ equity exhibited an initial increase followed by declines in the latter years of the period. These movements are reflected in the financial leverage ratio.
- Financial Leverage
- The financial leverage ratio decreased from 2.35 in 2021 to 2.06 in 2022, indicating a reduced reliance on debt financing relative to equity. However, the ratio increased to 2.54 in 2023, suggesting a greater degree of financial leverage. This increase was followed by slight decreases in 2024 and 2025, with the ratio settling at 2.41. The fluctuations suggest changes in the company’s capital structure and debt management strategies.
The increase in financial leverage in 2023, concurrent with the peak in total assets, warrants further investigation. While the increase in assets could be funded by debt, the subsequent decrease in assets alongside a relatively stable leverage ratio suggests a potential shift in financing methods or asset utilization. The slight decline in shareholders’ equity from 2022 onwards, coupled with the sustained leverage ratio above 2.40, indicates that the company continues to utilize a significant amount of debt financing.
Overall, the company’s financial leverage demonstrates a dynamic pattern over the observed period. The initial decrease followed by an increase and subsequent stabilization suggests active management of the capital structure, potentially influenced by investment opportunities, market conditions, and strategic financial decisions.
Interest Coverage
Pfizer Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Pfizer Inc. common shareholders | 7,771) | 8,031) | 2,119) | 31,372) | 21,979) | |
| Add: Net income attributable to noncontrolling interest | 41) | 31) | 39) | 35) | 46) | |
| Less: Discontinued operations, net of tax | 25) | 11) | (14) | 6) | (434) | |
| Add: Income tax expense | (267) | (28) | (1,114) | 3,328) | 1,852) | |
| Add: Interest expense | 2,671) | 3,091) | 2,209) | 1,238) | 1,291) | |
| Earnings before interest and tax (EBIT) | 10,191) | 11,114) | 3,267) | 35,967) | 25,602) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.82 | 3.60 | 1.48 | 29.05 | 19.83 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.28 | 2.32 | 3.81 | 7.04 | 6.36 | |
| Amgen Inc. | 4.26 | 2.46 | 3.73 | 6.22 | 6.60 | |
| Bristol-Myers Squibb Co. | 5.93 | -3.30 | 8.24 | 7.26 | 7.07 | |
| Danaher Corp. | 16.97 | 17.71 | 18.64 | 40.30 | 32.92 | |
| Eli Lilly & Co. | 29.75 | 17.24 | 14.49 | 21.53 | 19.12 | |
| Gilead Sciences Inc. | 10.57 | 1.71 | 8.27 | 7.22 | 9.27 | |
| Johnson & Johnson | 34.55 | 23.10 | 20.51 | 79.71 | 125.46 | |
| Merck & Co. Inc. | 16.52 | 16.69 | 2.65 | 18.09 | 18.22 | |
| Regeneron Pharmaceuticals Inc. | 120.42 | 87.59 | 58.52 | 82.80 | 163.75 | |
| Thermo Fisher Scientific Inc. | 6.12 | 6.03 | 5.54 | 11.56 | 17.49 | |
| Vertex Pharmaceuticals Inc. | 350.11 | 9.12 | 100.32 | 78.23 | 45.40 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 9.83 | 5.51 | 6.43 | 15.40 | 14.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | 8.96 | 6.11 | 7.51 | 14.75 | 14.14 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,191 ÷ 2,671 = 3.82
2 Click competitor name to see calculations.
The interest coverage ratio experienced significant fluctuation over the observed period. Initial values were strong, followed by a substantial decline and subsequent partial recovery.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a considerable increase from 2021 to 2022, rising from US$25,602 million to US$35,967 million. However, a dramatic decrease occurred in 2023, with EBIT falling to US$3,267 million. A partial recovery was noted in 2024, reaching US$11,114 million, and remained relatively stable in 2025 at US$10,191 million.
- Interest Expense
- Interest expense remained relatively consistent between 2021 and 2023, fluctuating between US$1,238 million and US$1,291 million. A notable increase was observed in 2024, rising to US$3,091 million, and remained elevated in 2025 at US$2,671 million.
- Interest Coverage Ratio
- The interest coverage ratio began at a high of 19.83 in 2021 and further improved to 29.05 in 2022, reflecting strong ability to meet interest obligations. A significant decline occurred in 2023, with the ratio falling to 1.48, indicating a substantially reduced margin of safety. The ratio partially recovered in 2024 to 3.60 and continued to improve slightly in 2025, reaching 3.82. While the 2024 and 2025 values represent an improvement over 2023, they remain considerably lower than the levels observed in 2021 and 2022.
The observed trends suggest a period of strong financial performance followed by a significant downturn in profitability, impacting the ability to comfortably cover interest expenses. The subsequent recovery in the interest coverage ratio, while positive, has not yet restored the company to its earlier levels of solvency in this regard.
Fixed Charge Coverage
Pfizer Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Pfizer Inc. common shareholders | 7,771) | 8,031) | 2,119) | 31,372) | 21,979) | |
| Add: Net income attributable to noncontrolling interest | 41) | 31) | 39) | 35) | 46) | |
| Less: Discontinued operations, net of tax | 25) | 11) | (14) | 6) | (434) | |
| Add: Income tax expense | (267) | (28) | (1,114) | 3,328) | 1,852) | |
| Add: Interest expense | 2,671) | 3,091) | 2,209) | 1,238) | 1,291) | |
| Earnings before interest and tax (EBIT) | 10,191) | 11,114) | 3,267) | 35,967) | 25,602) | |
| Add: Operating lease cost | 498) | 683) | 863) | 714) | 548) | |
| Earnings before fixed charges and tax | 10,689) | 11,797) | 4,130) | 36,681) | 26,150) | |
| Interest expense | 2,671) | 3,091) | 2,209) | 1,238) | 1,291) | |
| Operating lease cost | 498) | 683) | 863) | 714) | 548) | |
| Fixed charges | 3,169) | 3,774) | 3,072) | 1,952) | 1,839) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.37 | 3.13 | 1.34 | 18.79 | 14.22 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.12 | 2.24 | 3.59 | 6.54 | 5.90 | |
| Amgen Inc. | 3.97 | 2.37 | 3.55 | 5.52 | 5.67 | |
| Bristol-Myers Squibb Co. | 5.27 | -2.75 | 6.69 | 6.30 | 6.01 | |
| Danaher Corp. | 8.29 | 9.05 | 9.55 | 13.41 | 10.85 | |
| Eli Lilly & Co. | 29.75 | 13.81 | 10.98 | 15.17 | 13.33 | |
| Gilead Sciences Inc. | 9.21 | 1.61 | 7.18 | 6.30 | 8.15 | |
| Johnson & Johnson | 28.82 | 18.47 | 16.50 | 38.72 | 48.16 | |
| Merck & Co. Inc. | 12.84 | 13.31 | 2.27 | 13.69 | 13.08 | |
| Regeneron Pharmaceuticals Inc. | 66.71 | 53.13 | 46.55 | 68.67 | 138.96 | |
| Thermo Fisher Scientific Inc. | 5.04 | 5.01 | 4.61 | 8.12 | 12.19 | |
| Vertex Pharmaceuticals Inc. | 23.32 | 2.85 | 48.66 | 47.97 | 29.62 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.45 | 4.80 | 5.40 | 11.85 | 11.49 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 7.45 | 5.15 | 6.08 | 10.95 | 10.48 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,689 ÷ 3,169 = 3.37
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited significant fluctuations between 2021 and 2025. Initially strong, the ratio declined substantially before stabilizing in the latter periods. Earnings before fixed charges and tax demonstrated a volatile pattern, directly influencing the fixed charge coverage ratio.
- Fixed Charge Coverage – Overall Trend
- The fixed charge coverage ratio began at 14.22 in 2021 and increased to 18.79 in 2022, indicating a robust ability to meet fixed obligations. However, a dramatic decrease occurred in 2023, falling to 1.34. A recovery was then observed in 2024 and 2025, with the ratio reaching 3.13 and 3.37 respectively. This suggests a period of diminished capacity to cover fixed charges followed by a partial restoration of that capacity.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax were 26,150 in 2021, increasing to 36,681 in 2022. A substantial decline followed in 2023, with earnings dropping to 4,130. Earnings then rose to 11,797 in 2024 and remained relatively stable at 10,689 in 2025. This volatility in earnings directly correlates with the fluctuations observed in the fixed charge coverage ratio.
- Fixed Charges
- Fixed charges increased modestly from 1,839 in 2021 to 1,952 in 2022. A more significant increase occurred in 2023, rising to 3,072. Fixed charges continued to climb in 2024, reaching 3,774, before decreasing slightly to 3,169 in 2025. The increases in fixed charges contributed to the decline in fixed charge coverage, particularly in 2023 and 2024.
The period between 2023 and 2025 demonstrates a stabilization of the fixed charge coverage ratio, although it remains significantly lower than the levels observed in 2021 and 2022. The interplay between earnings and fixed charges is critical to understanding the company’s solvency position.