Pfizer Inc. (NYSE:PFE)

Gross Profit Margin

The gross profit margin demonstrated a general decreasing trend from 79.26% in the quarter ending March 29, 2020, down to 60.97% by the quarter ending December 31, 2023. Subsequently, a recovery is observed, with the margin increasing to 72.28% by March 30, 2025. This indicates an initial compression of gross profits followed by a notable improvement in cost management or pricing power towards the end of the period.

Operating Profit Margin

Operating profit margin increased from 19.47% in the quarter ending March 29, 2020, reaching a peak of 34.83% by December 31, 2022. Following this peak, there was a significant decline, dropping to as low as -4.19% by December 31, 2024, indicating operational challenges or increased expenses during that period. A recovery is seen thereafter with the margin rising back to 19.29% by March 30, 2025.

Net Profit Margin

The net profit margin followed a similar pattern to the operating margin, starting at 22.95% in the period ending March 29, 2020, rising steadily to 31.27% by October 2, 2022. After this peak, the margin contracted sharply to a low of -4.62% by December 31, 2024. Improvements afterward led to an increase back to 12.62% by March 30, 2025. This fluctuation suggests volatility in net profitability, likely tied to operational performance and possibly non-operating expenses or losses.

Return on Equity (ROE)

ROE exhibited a positive trajectory from 15.21% in the quarter ending March 29, 2020, climbing to a high of 33.61% by October 2, 2022. A significant decline follows, with ROE falling to negative values (-2.96%) by December 31, 2024, before recovering partially to 8.73% at March 30, 2025. The deterioration in ROE corresponds with declining profitability metrics, reflecting challenges in generating returns for shareholders during the mid-term.

Return on Assets (ROA)

ROA increased from 6.23% in early 2020 to 15.91% by October 2, 2022. It then experienced a steep decline, turning negative (-1.2%) by December 31, 2024, signaling reduced efficiency in asset utilization. A modest recovery occurs, with ROA reaching 3.79% by March 30, 2025. This trend is consistent with the company's overall profitability and operational performance fluctuations during the period.

The analysis of the financial metrics over the reported periods reveals notable trends and fluctuations in both gross profit and revenues, as well as changes in gross profit margin percentages.

Gross Profit

The gross profit figures initially exhibit a gradual upward trend from approximately 8,143 million USD in the first quarter of 2020 to a peak of 19,094 million USD in mid-2022. Following this peak, a decline is observed, with gross profit decreasing progressively to 4,223 million USD by the first quarter of 2023. Subsequently, there is a recovery phase where gross profit increases again, reaching 11,500 million USD by the first quarter of 2024. However, the latter quarters show some variability, with a slight decline towards 10,870 million USD by the first quarter of 2025.

Revenues

Revenues display a similar overall upward movement from a starting point of roughly 10,083 million USD in early 2020 increasing steadily to highs around 27,742 million USD by mid-2022. Parallel to the gross profit trend, revenues decline notably after the peak, falling to approximately 13,007 million USD by mid-2023. Afterwards, revenues show modest fluctuations with a moderate recovery and stabilization between 13,000 to 17,700 million USD from late 2023 through early 2025.

Gross Profit Margin

The gross profit margin percentage, calculated as gross profit divided by revenues, presents notable variation throughout the timeline. In early 2020, data are missing, but from late 2020 onwards, the margin shows a decreasing trend from approximately 79.26% down to a low near 58.1% in mid-2023. This decline suggests increased cost pressures or changes in product pricing or mix. Following this trough, the margin improves significantly, reaching above 70% by early 2025, indicating either better cost control or more profitable revenue streams.

Overall, the observed data imply a phase of strong growth in both revenues and gross profit through 2021 and early 2022, succeeded by a period of sharp decline through 2023. The partial recovery in 2024 and early 2025 aligns with improvements in profitability metrics, suggesting operational adjustments or strategic changes affecting cost structures or sales quality. The volatility and substantial shifts during the timeline highlight a dynamic operating environment with potential influences from external market conditions or internal business transformations.

The financial data reveals several distinct patterns and fluctuations in the company's quarterly operating income, revenues, and operating profit margin over the observed periods.

Revenues

Revenues exhibit an overall upward trend from the first quarter of 2020 through mid-2022, increasing from approximately 10,083 million USD to a peak of about 27,742 million USD in July 2022. Following this peak, there is a notable decline through late 2023 and early 2024, with revenues decreasing to around 13,715 million USD by the first quarter of 2025. This pattern suggests a strong growth phase followed by a period of contraction in more recent quarters.

Operating Income (Loss)

The operating income shows significant variability across the reported quarters. Initial quarters in 2020 displayed moderate income levels in the range of approximately 600 to 3,000 million USD. Substantial gains occurred during 2021 and into mid-2022, reaching highs above 12,000 million USD in July 2022. However, from late 2022 onward, operating income dropped sharply, even registering losses in the last quarters of 2023 with values of approximately -3,170 million USD and -4,289 million USD, before partially recovering in 2024. This volatility points to underlying operational challenges or market factors impacting profitability despite relatively stable or high revenue levels during some periods.

Operating Profit Margin

The operating profit margin data, available starting from late 2020, aligns with the trends shown in operating income and revenues. Margins increased steadily from around 19.5% in late 2020 to a peak exceeding 34% in late 2022, reflecting enhanced profitability during this period. Thereafter, margins declined significantly to single digits and even negative territory in late 2023, before recovering to approximately 19% by early 2025. This fluctuation indicates periods of both strong operational efficiency and significant cost or revenue pressures affecting profitability.

Overall, the data indicates a period of strong revenue growth and improving margins through mid-2022, followed by marked declines in profitability and revenues in the subsequent quarters. The sharp swings in operating income and margin in recent quarters suggest instability potentially related to specific market or operational conditions requiring further investigation. The partial recovery in 2024 signals potential stabilization or corrective measures being effective.

The company’s financial performance over the analyzed quarters reflects notable fluctuations in key metrics such as net income, revenues, and net profit margin, indicating periods of both growth and contraction.

Net Income

Net income attributable to common shareholders shows considerable variability across the quarters. Initial quarters in 2020 report moderate positive figures, with a peak of 8,146 million USD in the fourth quarter of 2021. However, substantial declines are evident in the first three quarters of 2023, where net income turns negative, reaching a low of -3,369 million USD in the second quarter of 2023. Recovery appears in late 2023 and early 2024, with positive figures returning, though with considerable volatility. The data suggest episodic challenges impacting profitability, interspersed with periods of strong earnings.

Revenues

Revenue trends depict a generally increasing trajectory from early 2020 through mid-2022, rising from approximately 10 billion USD to peaks exceeding 27 billion USD, particularly pronounced during 2021 and the first half of 2022. Post mid-2022, revenues display a decline and subsequent stabilization at lower levels, fluctuating between approximately 13 to 18 billion USD through 2023 and early 2025. This pattern may reflect changing market dynamics, product lifecycle stages, or strategic shifts affecting sales volume and pricing.

Net Profit Margin

Net profit margin demonstrates a generally high profitability level during most of 2021 and 2022, maintaining above 24% and peaking at over 31% in early 2023. A sharp decline is observed in mid-2023, dropping to marginal positive and even negative margins (-0.55% to -4.62%), aligning with the periods of negative net income. Margins recover moderately in subsequent quarters, returning to positive territory around 7% to 12%, though remaining below previous peak levels. This volatility in profit margins underscores operational or expense challenges impacting net income compared to revenue.

Overall Patterns and Insights

The financial data illustrate a cycle of strong revenue growth followed by a contraction phase, mirrored by swings in net income and profitability. The negative income and margins during 2023 suggest significant cost pressures or exceptional expenses. Recovery in late 2023 and 2024 implies potential strategic adjustments or market improvements. Continued monitoring of these trends is essential to assess sustainability of profit margins and revenue growth in the evolving business environment.

Net income attributable to common shareholders

The net income exhibits considerable volatility across the periods. Initially, the values fluctuate moderately between approximately 1.3 billion and 8.1 billion US dollars from early 2020 through late 2021, with notable peaks in the third quarter of 2021. From 2022 onwards, the company experienced pronounced fluctuations including both high earnings and significant losses. For instance, in October 2023 and December 2023, the net income turned negative, indicating losses of 2.4 billion and 3.4 billion US dollars, respectively. Following these losses, net income again rebounded to positive values by early 2024, though the amounts remain relatively modest compared to prior peaks. Overall, the trend suggests periods of strong profitability interrupted by sharp declines and losses.

Total shareholders’ equity

The shareholders’ equity demonstrates a general upward trajectory over the entire timeframe. Starting at around 65 billion US dollars in early 2020, equity steadily increased through 2022 and early 2023, reaching a peak slightly above 100 billion US dollars in the second quarter of 2023. Subsequent periods show a modest decline, with equity fluctuating around the 87 to 92 billion US dollar range from late 2023 into 2025. This pattern indicates ongoing growth in shareholder value until mid-2023, followed by a stabilization phase with some minor decreases.

Return on Equity (ROE)

ROE was absent or unreported in early 2020 data but became available starting in the fourth quarter of 2020. Initial ROE figures indicate a positive and increasing trend, rising from approximately 15% at the end of 2020 to a peak exceeding 33% in mid-2022. The period of high ROE corresponds with strong net income performance and growing shareholder equity. However, from late 2022 through the end of 2023, ROE declined sharply, turning negative in late 2023, coinciding with recorded net losses. Into 2024 and early 2025, ROE begins to recover but remains below earlier peak levels, fluctuating between approximately 4.6% and 9.1%.

Summary of trends

The financial metrics collectively indicate a period of robust profitability and increasing shareholder equity through 2021 and mid-2022. This performance was followed by volatility and a downward correction starting late 2022 into 2023. The net income volatility and occurrence of losses in late 2023 notably impacted ROE, resulting in negative returns during this period. Despite these challenges, equity levels remained relatively high, suggesting retained financial strength. Early 2024 data show tentative signs of recovery in profitability and returns, although not yet reaching previously attained peaks.

The analysis of the financial data over the presented periods reveals fluctuations in key performance indicators, reflecting varying business conditions throughout the timeline.

Net Income Trends

The net income attributable to common shareholders exhibited significant volatility over the quarters. Initially, net income values were positive and relatively stable around the 3000 to 8000 million US$ range from 2020 through early 2023, reaching peaks above 9000 million in certain quarters. However, starting Q3 2023, net income showed a notable decline, turning negative in Q4 2023 and Q1 2024, indicating periods of loss. Following this downturn, the company experienced recovery fluctuations with net income returning to positive figures in subsequent quarters but with lower magnitude compared to peak periods.

Total Assets Movement

Total assets followed a general upward trend over the entire period, increasing from approximately 166 billion US$ in early 2020 to a peak near 226 billion US$ in late 2023. After reaching this peak, assets slightly declined but remained elevated above 200 billion US$, suggesting sustained investment or accumulation of assets despite income volatility. This trend reflects possible strategic asset growth or acquisitions that may support future revenue generation.

Return on Assets (ROA)

The ROA data indicate a strong improving trend from the earlier periods, starting with values above 6% in late 2020, peaking around 15% in mid-2022, demonstrating efficient asset utilization and profitability. Subsequently, ROA declined sharply in late 2023 and early 2024, turning negative briefly, consistent with the observed net income losses. Following this trough, ROA recovered moderately to around 3-4%, indicating a partial restoration of asset profitability but remaining lower than the previous high-performance periods.

In summary, the company experienced phases of strong profitability and asset growth, followed by a period marked by net income losses and reduced return efficiency on assets. Despite these fluctuations, the asset base remained robust, which may provide a foundation for potential recovery and future financial stability.