Microsoft Excel LibreOffice Calc

Pfizer Inc. (PFE)


Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Pfizer Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt Ratios
Debt to equity 0.66 0.61 0.71 0.60 0.51
Debt to capital 0.40 0.38 0.41 0.38 0.34
Debt to assets 0.26 0.25 0.25 0.23 0.22
Financial leverage 2.51 2.41 2.88 2.59 2.37
Coverage Ratios
Interest coverage 10.03 10.69 8.04 8.48 10.00
Fixed charge coverage 8.34 8.76 6.64 7.21 8.76

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Pfizer Inc.’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Pfizer Inc.’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Pfizer Inc.’s debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Pfizer Inc.’s financial leverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Pfizer Inc.’s interest coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Pfizer Inc.’s fixed charge coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Debt to Equity

Pfizer Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Short-term borrowings, including current portion of long-term debt 8,831  9,953  10,688  10,160  5,141 
Long-term debt, excluding current portion 32,909  33,538  31,398  28,818  31,541 
Total debt 41,740  43,491  42,086  38,978  36,682 
 
Total Pfizer Inc. shareholders’ equity 63,407  71,308  59,544  64,720  71,301 
Ratio
Debt to equity1 0.66 0.61 0.71 0.60 0.51
Benchmarks
Debt to Equity, Competitors
Abbott Laboratories 0.64 0.90 1.07 0.42 0.36
AbbVie Inc. 7.33 7.95 8.03 8.62
Allergan PLC 0.37 0.41 0.43 0.56 0.55
Amgen Inc. 2.71 1.40 1.16 1.12 1.19
Biogen Inc. 0.46 0.47 0.54 0.70 0.05
Bristol-Myers Squibb Co. 0.52 0.68 0.41 0.47 0.53
Celgene Corp. 3.29 2.29 2.17 2.41 1.05
Eli Lilly & Co. 1.30 1.18 0.74 0.55 0.52
Gilead Sciences Inc. 1.28 1.64 1.39 1.20 0.80
Johnson & Johnson 0.51 0.57 0.39 0.28 0.27
Merck & Co. Inc. 0.94 0.71 0.62 0.59 0.44
Regeneron Pharmaceuticals Inc. 0.08 0.11 0.11 0.10 0.18
Debt to Equity, Sector
Pharmaceuticals & Biotechnology 0.90 0.84 0.76 0.69 0.55
Debt to Equity, Industry
Health Care 0.82 0.81 0.76 0.70 0.55

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to equity = Total debt ÷ Total Pfizer Inc. shareholders’ equity
= 41,740 ÷ 63,407 = 0.66

Ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Pfizer Inc.’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Debt to Capital

Pfizer Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Short-term borrowings, including current portion of long-term debt 8,831  9,953  10,688  10,160  5,141 
Long-term debt, excluding current portion 32,909  33,538  31,398  28,818  31,541 
Total debt 41,740  43,491  42,086  38,978  36,682 
Total Pfizer Inc. shareholders’ equity 63,407  71,308  59,544  64,720  71,301 
Total capital 105,147  114,799  101,630  103,698  107,983 
Ratio
Debt to capital1 0.40 0.38 0.41 0.38 0.34
Benchmarks
Debt to Capital, Competitors
Abbott Laboratories 0.39 0.47 0.52 0.30 0.27
AbbVie Inc. 1.27 0.88 0.89 0.89 0.90
Allergan PLC 0.27 0.29 0.30 0.36 0.35
Amgen Inc. 0.73 0.58 0.54 0.53 0.54
Biogen Inc. 0.31 0.32 0.35 0.41 0.05
Bristol-Myers Squibb Co. 0.34 0.40 0.29 0.32 0.35
Celgene Corp. 0.77 0.70 0.68 0.71 0.51
Eli Lilly & Co. 0.57 0.54 0.42 0.35 0.34
Gilead Sciences Inc. 0.56 0.62 0.58 0.54 0.45
Johnson & Johnson 0.34 0.37 0.28 0.22 0.21
Merck & Co. Inc. 0.48 0.42 0.38 0.37 0.31
Regeneron Pharmaceuticals Inc. 0.07 0.10 0.10 0.09 0.15
Debt to Capital, Sector
Pharmaceuticals & Biotechnology 0.47 0.46 0.43 0.41 0.35
Debt to Capital, Industry
Health Care 0.45 0.45 0.43 0.41 0.36

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 41,740 ÷ 105,147 = 0.40

Ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Pfizer Inc.’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Debt to Assets

Pfizer Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Short-term borrowings, including current portion of long-term debt 8,831  9,953  10,688  10,160  5,141 
Long-term debt, excluding current portion 32,909  33,538  31,398  28,818  31,541 
Total debt 41,740  43,491  42,086  38,978  36,682 
 
Total assets 159,422  171,797  171,615  167,460  169,274 
Ratio
Debt to assets1 0.26 0.25 0.25 0.23 0.22
Benchmarks
Debt to Assets, Competitors
Abbott Laboratories 0.29 0.37 0.42 0.22 0.19
AbbVie Inc. 0.68 0.53 0.56 0.60 0.54
Allergan PLC 0.23 0.25 0.25 0.31 0.30
Amgen Inc. 0.51 0.44 0.45 0.44 0.45
Biogen Inc. 0.23 0.25 0.28 0.33 0.04
Bristol-Myers Squibb Co. 0.21 0.24 0.20 0.21 0.23
Celgene Corp. 0.57 0.53 0.51 0.53 0.40
Eli Lilly & Co. 0.29 0.30 0.27 0.22 0.22
Gilead Sciences Inc. 0.43 0.48 0.46 0.43 0.36
Johnson & Johnson 0.20 0.22 0.19 0.15 0.14
Merck & Co. Inc. 0.30 0.28 0.26 0.26 0.22
Regeneron Pharmaceuticals Inc. 0.06 0.08 0.07 0.07 0.12
Debt to Assets, Sector
Pharmaceuticals & Biotechnology 0.32 0.32 0.31 0.29 0.25
Debt to Assets, Industry
Health Care 0.31 0.32 0.31 0.30 0.25

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Debt to assets = Total debt ÷ Total assets
= 41,740 ÷ 159,422 = 0.26

Ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Pfizer Inc.’s debt to assets ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Financial Leverage

Pfizer Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Total assets 159,422  171,797  171,615  167,460  169,274 
Total Pfizer Inc. shareholders’ equity 63,407  71,308  59,544  64,720  71,301 
Ratio
Financial leverage1 2.51 2.41 2.88 2.59 2.37
Benchmarks
Financial Leverage, Competitors
Abbott Laboratories 2.20 2.47 2.56 1.94 1.92
AbbVie Inc. 13.89 14.26 13.45 15.81
Allergan PLC 1.56 1.60 1.69 1.77 1.85
Amgen Inc. 5.31 3.17 2.60 2.55 2.68
Biogen Inc. 1.94 1.88 1.88 2.08 1.32
Bristol-Myers Squibb Co. 2.49 2.86 2.08 2.23 2.27
Celgene Corp. 5.76 4.36 4.26 4.57 2.66
Eli Lilly & Co. 4.47 3.88 2.77 2.44 2.42
Gilead Sciences Inc. 2.98 3.44 3.02 2.80 2.25
Johnson & Johnson 2.56 2.61 2.01 1.88 1.88
Merck & Co. Inc. 3.09 2.56 2.38 2.28 2.02
Regeneron Pharmaceuticals Inc. 1.34 1.43 1.57 1.53 1.52
Financial Leverage, Sector
Pharmaceuticals & Biotechnology 2.80 2.63 2.47 2.32 2.20
Financial Leverage, Industry
Health Care 2.63 2.56 2.44 2.34 2.21

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Financial leverage = Total assets ÷ Total Pfizer Inc. shareholders’ equity
= 159,422 ÷ 63,407 = 2.51

Ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Pfizer Inc.’s financial leverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Interest Coverage

Pfizer Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income attributable to Pfizer Inc. 11,153  21,308  7,215  6,960  9,135 
Add: Net income attributable to noncontrolling interest 35  47  31  26  33 
Less: Discontinued operations, net of tax 17  11  49 
Add: Income tax expense 706  (9,048) 1,122  1,990  3,121 
Add: Interest expense 1,316  1,270  1,186  1,199  1,360 
Earnings before interest and tax (EBIT) 13,201  13,575  9,537  10,164  13,600 
Ratio
Interest coverage1 10.03 10.69 8.04 8.48 10.00
Benchmarks
Interest Coverage, Competitors
Abbott Laboratories 4.48 3.47 4.28 20.53 17.79
AbbVie Inc. 4.86 7.72 8.53 10.24 6.52
Allergan PLC -6.53 -8.48 -1.19 -2.71 -3.16
Amgen Inc. 7.86 8.36 8.27 8.29 6.21
Biogen Inc. 30.41 21.45 19.97 50.79 134.27
Bristol-Myers Squibb Co. 33.61 27.18 36.42 12.29 12.73
Celgene Corp. 7.52 9.26 5.74 7.51 14.22
Eli Lilly & Co. 14.95 10.77 19.22 18.31 21.16
Gilead Sciences Inc. 8.24 13.10 18.74 32.48 37.06
Johnson & Johnson 18.91 19.92 28.28 35.78 39.58
Merck & Co. Inc. 12.27 9.65 7.72 9.04 24.61
Regeneron Pharmaceuticals Inc. 91.55 83.75 185.82 87.03 21.76
Interest Coverage, Sector
Pharmaceuticals & Biotechnology 8.96 9.01 10.57 12.56 16.13
Interest Coverage, Industry
Health Care 8.71 8.71 9.62 11.68 15.13

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 13,201 ÷ 1,316 = 10.03

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Pfizer Inc.’s interest coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Fixed Charge Coverage

Pfizer Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
U.S. statutory income tax rate 21.00% 35.00% 35.00% 35.00% 35.00%
Selected Financial Data (USD $ in millions)
Net income attributable to Pfizer Inc. 11,153  21,308  7,215  6,960  9,135 
Add: Net income attributable to noncontrolling interest 35  47  31  26  33 
Less: Discontinued operations, net of tax 17  11  49 
Add: Income tax expense 706  (9,048) 1,122  1,990  3,121 
Add: Interest expense 1,316  1,270  1,186  1,199  1,360 
Earnings before interest and tax (EBIT) 13,201  13,575  9,537  10,164  13,600 
Add: Rental expense, net of sublease income 301  314  292  243  216 
Earnings before fixed charges and tax 13,502  13,889  9,829  10,407  13,816 
 
Interest expense 1,316  1,270  1,186  1,199  1,360 
Rental expense, net of sublease income 301  314  292  243  216 
Preferred stock dividends, net of tax
Preferred stock dividends, net of tax, tax adjustment1 — 
Preferred stock dividends, net of tax, after tax adjustment
Fixed charges 1,618  1,586  1,480  1,444  1,578 
Ratio
Fixed charge coverage2 8.34 8.76 6.64 7.21 8.76
Benchmarks
Fixed Charge Coverage, Competitors
AbbVie Inc. 4.44 6.86 7.54 8.68 5.35
Allergan PLC -5.73 -6.20 -0.90 -2.11 -2.57
Amgen Inc. 7.13 7.56 7.57 7.50 5.67
Biogen Inc. 23.25 17.23 16.01 29.98 43.78
Bristol-Myers Squibb Co. 20.07 17.24 19.96 7.41 8.00
Celgene Corp. 6.66 8.30 5.17 6.37 10.77
Eli Lilly & Co. 8.66 5.89 9.31 8.21 8.98
Gilead Sciences Inc. 7.58 12.26 17.36 29.28 32.08
Johnson & Johnson 14.46 14.53 19.75 23.12 24.53
Merck & Co. Inc. 8.95 7.03 5.73 6.54 16.97
Regeneron Pharmaceuticals Inc. 78.15 71.68 56.62 42.61 16.01
Fixed Charge Coverage, Sector
Pharmaceuticals & Biotechnology 7.61 7.43 8.60 9.89 12.51
Fixed Charge Coverage, Industry
Health Care 7.07 6.96 7.68 8.94 11.32

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 Preferred stock dividends, net of tax, tax adjustment = (Preferred stock dividends, net of tax × U.S. statutory income tax rate) ÷ (1 − U.S. statutory income tax rate)
= (1 × 21.00%) ÷ (1 − 21.00%) = 0

2 Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 13,502 ÷ 1,618 = 8.34

Ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Pfizer Inc.’s fixed charge coverage ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.