Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Pfizer Inc., long-term (investment) activity ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals distinct trends in asset and equity utilization.
- Net Fixed Asset Turnover
- The ratio demonstrates a notable increase from 3.07 in 2020 to a peak of 6.22 in 2022, indicating improved efficiency in generating revenue from net fixed assets during this period. However, the ratio subsequently declines sharply to 3.14 in 2023, with a slight recovery to 3.46 in 2024. This suggests volatility in asset productivity or changes in asset base or revenues impacting this efficiency metric.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- A similar pattern is observed when including right-of-use assets: the ratio rises from 2.79 in 2020 to 5.25 in 2022, followed by a decline to 2.72 in 2023 and a modest increase to 3.08 in 2024. The inclusion of leases consistently results in slightly lower turnover ratios compared to net fixed assets alone, reflecting the impact of incorporating leased assets on the asset base.
- Total Asset Turnover
- The total asset turnover ratio improves from 0.28 in 2020 to 0.51 in 2022, signaling enhanced overall asset efficiency in generating revenue. However, there is a decline to 0.26 in 2023 before a slight increase to 0.30 in 2024. This fluctuation might indicate changes in asset utilization or revenue growth patterns, similar to the observed trend in net fixed asset turnover.
- Equity Turnover
- Equity turnover shows an increasing trend from 0.67 in 2020 to 1.06 in 2021 and remains stable at 1.06 in 2022. Subsequently, it declines back to 0.67 in 2023 with a mild recovery to 0.72 in 2024. This pattern suggests periods of more intensive equity usage followed by reduced activity or changes in equity funding and revenue generation efficiency.
Overall, the data depict a consistent rise in turnover ratios until 2022, indicating improving asset and equity efficiency, followed by a notable reduction in 2023 and partial recovery in 2024. These shifts may reflect underlying operational changes, capital structure adjustments, or market conditions affecting asset utilization and revenue performance.
Net Fixed Asset Turnover
Pfizer Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 63,627) | 59,553) | 101,175) | 82,145) | 42,678) | |
| Property, plant and equipment, net | 18,393) | 18,940) | 16,274) | 14,882) | 13,900) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.46 | 3.14 | 6.22 | 5.52 | 3.07 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 10.97 | 10.89 | 11.76 | 11.00 | 8.73 | |
| Amgen Inc. | 4.89 | 4.53 | 4.57 | 4.69 | 4.96 | |
| Bristol-Myers Squibb Co. | 6.77 | 6.77 | 7.38 | 7.67 | 7.22 | |
| Danaher Corp. | 4.78 | 5.25 | 7.96 | 7.77 | 6.83 | |
| Eli Lilly & Co. | 2.63 | 2.64 | 2.81 | 3.15 | 2.83 | |
| Gilead Sciences Inc. | 5.28 | 5.07 | 4.93 | 5.27 | 4.90 | |
| Johnson & Johnson | 4.33 | 4.28 | 4.79 | 4.95 | 4.40 | |
| Merck & Co. Inc. | 2.70 | 2.61 | 2.77 | 2.53 | 2.67 | |
| Regeneron Pharmaceuticals Inc. | 3.09 | 3.16 | 3.23 | 4.62 | 2.64 | |
| Thermo Fisher Scientific Inc. | 4.61 | 4.54 | 4.84 | 4.71 | 5.45 | |
| Vertex Pharmaceuticals Inc. | 8.98 | 8.51 | 8.06 | 6.92 | 6.47 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.18 | 4.12 | 4.98 | 4.98 | 4.31 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 8.88 | 8.80 | 9.32 | 9.09 | 8.34 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 63,627 ÷ 18,393 = 3.46
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends across the analyzed periods. Revenues increased significantly from 42,678 million US dollars in 2020 to a peak of 101,175 million US dollars in 2022, reflecting strong growth during this interval. However, this was followed by a sharp decline to 59,553 million US dollars in 2023, with a modest recovery to 63,627 million US dollars in 2024, suggesting some instability or market challenges in the most recent years.
In terms of property, plant, and equipment (PP&E) net values, there is a consistent upward trend from 13,900 million US dollars in 2020 to a high of 18,940 million US dollars in 2023. This steady increase indicates ongoing investment in fixed assets over the period. A slight decrease to 18,393 million US dollars in 2024 might reflect asset disposals or impairments but does not negate the overall growth trend in capital assets.
The net fixed asset turnover ratio, which measures the efficiency of fixed asset utilization in generating revenues, exhibited a significant rise from 3.07 in 2020 to 6.22 in 2022. This aligns with the revenue growth observed during this period and suggests improved operational efficiency or higher asset productivity. However, this ratio dropped sharply to 3.14 in 2023 before a minor increase to 3.46 in 2024. The decline corresponds with the reduction in revenues, implying that the asset base was not as effectively leveraged in generating sales during these years.
Overall, the data indicates a period of rapid revenue growth and improving asset utilization efficiency until 2022, followed by a marked revenue contraction and diminished efficiency in subsequent years. The steady investment in fixed assets suggests a commitment to capacity expansion or modernization despite recent operational challenges. Close monitoring of asset performance and revenue drivers will be essential to understand and address the causes of the recent downturn.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Pfizer Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 63,627) | 59,553) | 101,175) | 82,145) | 42,678) | |
| Property, plant and equipment, net | 18,393) | 18,940) | 16,274) | 14,882) | 13,900) | |
| Operating leases, ROU assets (included in Other noncurrent assets) | 2,289) | 2,924) | 3,002) | 2,839) | 1,393) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 20,682) | 21,864) | 19,276) | 17,721) | 15,293) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.08 | 2.72 | 5.25 | 4.64 | 2.79 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | 9.62 | 9.47 | 10.24 | 9.57 | 7.46 | |
| Amgen Inc. | 4.51 | 4.08 | 4.13 | 4.23 | 4.58 | |
| Bristol-Myers Squibb Co. | 5.78 | 5.60 | 6.18 | 6.66 | 6.30 | |
| Danaher Corp. | 3.93 | 4.26 | 6.35 | 6.10 | 5.30 | |
| Eli Lilly & Co. | 2.48 | 2.45 | 2.63 | 2.93 | 2.63 | |
| Gilead Sciences Inc. | 4.83 | 4.57 | 4.51 | 4.77 | 4.34 | |
| Johnson & Johnson | 4.11 | 4.07 | 4.54 | 4.72 | 4.18 | |
| Merck & Co. Inc. | 2.55 | 2.45 | 2.60 | 2.33 | 2.43 | |
| Regeneron Pharmaceuticals Inc. | 2.95 | 3.11 | 3.17 | 4.52 | 2.58 | |
| Thermo Fisher Scientific Inc. | 3.97 | 3.89 | 4.13 | 3.98 | 4.82 | |
| Vertex Pharmaceuticals Inc. | 4.26 | 6.79 | 6.13 | 5.32 | 4.83 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.78 | 3.71 | 4.48 | 4.45 | 3.91 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 7.33 | 7.17 | 7.48 | 7.17 | 6.51 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 63,627 ÷ 20,682 = 3.08
2 Click competitor name to see calculations.
- Revenues
- The revenue figures display significant volatility over the five-year period. Starting at $42,678 million in 2020, revenues nearly doubled to $82,145 million in 2021, followed by a substantial increase to $101,175 million in 2022. However, there is a marked decline in 2023 to $59,553 million, with a slight recovery to $63,627 million in 2024. This pattern suggests exceptional performance peaks followed by a downturn, potentially reflecting changes in market conditions, product cycles, or other external factors.
- Property, Plant and Equipment, Net (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment shows a steady upward trend from $15,293 million in 2020 to a peak of $21,864 million in 2023. In 2024, there is a slight reduction to $20,682 million. This progressive growth through most years indicates ongoing investment in fixed assets, although the minor decrease at the end may suggest asset disposals, depreciation outpacing additions, or revaluation adjustments.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio initially improves significantly, rising from 2.79 in 2020 to a high of 5.25 in 2022, indicating more efficient use of fixed assets to generate revenue. However, the ratio drops sharply to 2.72 in 2023 and modestly rebounds to 3.08 in 2024. The decline corresponds with the revenue drop and likely signals reduced asset utilization or lower sales volume relative to asset base in those years.
Total Asset Turnover
Pfizer Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 63,627) | 59,553) | 101,175) | 82,145) | 42,678) | |
| Total assets | 213,396) | 226,501) | 197,205) | 181,476) | 154,229) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.30 | 0.26 | 0.51 | 0.45 | 0.28 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 0.42 | 0.40 | 0.42 | 0.38 | 0.30 | |
| Amgen Inc. | 0.35 | 0.28 | 0.38 | 0.40 | 0.39 | |
| Bristol-Myers Squibb Co. | 0.52 | 0.47 | 0.48 | 0.42 | 0.36 | |
| Danaher Corp. | 0.31 | 0.28 | 0.37 | 0.35 | 0.29 | |
| Eli Lilly & Co. | 0.57 | 0.53 | 0.58 | 0.58 | 0.53 | |
| Gilead Sciences Inc. | 0.48 | 0.43 | 0.43 | 0.40 | 0.36 | |
| Johnson & Johnson | 0.49 | 0.51 | 0.51 | 0.52 | 0.47 | |
| Merck & Co. Inc. | 0.55 | 0.56 | 0.54 | 0.46 | 0.52 | |
| Regeneron Pharmaceuticals Inc. | 0.38 | 0.40 | 0.42 | 0.63 | 0.50 | |
| Thermo Fisher Scientific Inc. | 0.44 | 0.43 | 0.46 | 0.41 | 0.47 | |
| Vertex Pharmaceuticals Inc. | 0.49 | 0.43 | 0.49 | 0.56 | 0.53 | |
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.43 | 0.40 | 0.47 | 0.45 | 0.39 | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.75 | 0.73 | 0.75 | 0.70 | 0.64 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 63,627 ÷ 213,396 = 0.30
2 Click competitor name to see calculations.
The financial data reveals considerable fluctuations in revenues and total asset turnover over the observed period, alongside a generally increasing trend in total assets.
- Revenues
- Revenues show a significant increase from 42,678 million US dollars in 2020 to a peak of 101,175 million US dollars in 2022. Subsequent years demonstrate a sharp decline, with revenues falling to 59,553 million in 2023, followed by a slight recovery to 63,627 million in 2024. This pattern suggests a period of rapid growth up to 2022, potentially driven by market or product factors, followed by a contraction and partial rebound.
- Total Assets
- Total assets increase steadily from 154,229 million US dollars in 2020 to 226,501 million in 2023, before slightly declining to 213,396 million in 2024. The continuous rise until 2023 indicates ongoing investment or accumulation of resources, while the minor decrease in 2024 may reflect asset disposals or valuation adjustments.
- Total Asset Turnover
- Total asset turnover rises from 0.28 in 2020 to 0.51 in 2022, aligning with the revenue growth phase and suggesting improved efficiency in using assets to generate sales. However, the ratio drops sharply to 0.26 in 2023 before modestly increasing to 0.30 in 2024. This decline corresponds with the decrease in revenues despite the still elevated asset base, implying reduced asset utilization efficiency during this period.
Overall, the data indicates a phase of robust revenue growth and efficient asset use culminating in 2022, followed by a year of substantial revenue contraction and decreased efficiency in 2023, with some moderate improvements in 2024. Total assets expanded significantly through most of the period, potentially highlighting strategic investments or acquisitions, although asset performance relative to sales weakened notably in the latter years.
Equity Turnover
Pfizer Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 63,627) | 59,553) | 101,175) | 82,145) | 42,678) | |
| Total Pfizer Inc. shareholders’ equity | 88,203) | 89,014) | 95,661) | 77,201) | 63,238) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.72 | 0.67 | 1.06 | 1.06 | 0.67 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | 16.94 | 5.24 | 3.36 | 3.65 | 3.50 | |
| Amgen Inc. | 5.45 | 4.32 | 6.77 | 3.63 | 2.58 | |
| Bristol-Myers Squibb Co. | 2.96 | 1.53 | 1.49 | 1.29 | 1.12 | |
| Danaher Corp. | 0.48 | 0.45 | 0.63 | 0.65 | 0.56 | |
| Eli Lilly & Co. | 3.17 | 3.17 | 2.68 | 3.15 | 4.35 | |
| Gilead Sciences Inc. | 1.48 | 1.18 | 1.27 | 1.28 | 1.34 | |
| Johnson & Johnson | 1.24 | 1.24 | 1.24 | 1.27 | 1.31 | |
| Merck & Co. Inc. | 1.39 | 1.60 | 1.29 | 1.28 | 1.90 | |
| Regeneron Pharmaceuticals Inc. | 0.48 | 0.51 | 0.54 | 0.86 | 0.77 | |
| Thermo Fisher Scientific Inc. | 0.86 | 0.92 | 1.02 | 0.96 | 0.93 | |
| Vertex Pharmaceuticals Inc. | 0.67 | 0.56 | 0.64 | 0.75 | 0.71 | |
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.27 | 1.15 | 1.24 | 1.27 | 1.22 | |
| Equity Turnover, Industry | ||||||
| Health Care | 2.10 | 2.00 | 1.97 | 1.91 | 1.89 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Revenues ÷ Total Pfizer Inc. shareholders’ equity
= 63,627 ÷ 88,203 = 0.72
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed five-year period.
- Revenues
- Revenues show significant fluctuation throughout the years. Starting at 42,678 million USD in 2020, revenues nearly doubled to 82,145 million USD in 2021 and further increased to 101,175 million USD in 2022. However, a sharp decline is observed in 2023, where revenues dropped to 59,553 million USD, followed by a modest recovery to 63,627 million USD in 2024. This pattern suggests a period of rapid growth followed by a notable contraction and slight rebound in revenue generation.
- Total Shareholders’ Equity
- Total shareholders’ equity shows a consistent upward trend from 63,238 million USD in 2020 to a peak of 95,661 million USD in 2022. After this peak, equity decreased to 89,014 million USD in 2023 and further slightly decreased to 88,203 million USD in 2024. Despite the reduction post-2022, the overall trend over five years is positive, indicating growth in the company's net assets until a recent moderation.
- Equity Turnover Ratio
- The equity turnover ratio, an indicator of how efficiently the company uses shareholders' equity to generate revenue, aligns closely with the revenue trend. It increased from 0.67 in 2020 to 1.06 in 2021 and remained stable at this peak level in 2022. In 2023, it declined back to 0.67, mirroring the revenue decrease, and saw a slight improvement to 0.72 in 2024. This trend reflects a corresponding reduction in operational efficiency relative to equity after 2022 but shows early signs of improvement by 2024.