Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Profitability Ratios (Summary)
Pfizer Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin experienced a decline from 79.63% in 2020 to 62.48% in 2021, followed by a slight recovery to 66.05% in 2022. However, it dropped again to 58.1% in 2023 before rising significantly to 71.94% in 2024. This indicates fluctuations in the company's ability to manage production costs relative to sales over the reviewed period.
- Operating Profit Margin
- The operating profit margin displayed an initial upward trend, increasing from 20.92% in 2020 to a peak of 35.37% in 2022. Subsequently, a sharp decline occurred in 2023 to 2.15%, with a partial recovery to 19.51% in 2024. The volatility suggests operational challenges or unusual expenses impacted profitability in 2023.
- Net Profit Margin
- The net profit margin followed a pattern similar to the operating margin, rising from 22.53% in 2020 to 31.01% in 2022. It then sharply declined to 3.56% in 2023, recovering moderately to 12.62% in 2024. This reflects the overall profitability after all expenses, emphasizing the significant drop in 2023 and only partial rebound thereafter.
- Return on Equity (ROE)
- Return on equity showed a strong improvement from 15.21% in 2020 to 32.79% in 2022. A substantial decrease followed, dropping dramatically to 2.38% in 2023 before recovering somewhat to 9.11% in 2024. The decline in 2023 indicates a reduced ability to generate profit from shareholders' equity during that year.
- Return on Assets (ROA)
- The return on assets increased steadily from 6.23% in 2020 to 15.91% in 2022. This was followed by a sharp decrease to 0.94% in 2023 and a slight improvement to 3.76% in 2024. The trend suggests a diminished efficiency in utilizing assets to generate profit in 2023, with some recovery thereafter.
Return on Sales
Return on Investment
Gross Profit Margin
Pfizer Inc., gross profit margin 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) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
Over the five-year period analyzed, the revenue of the company exhibits significant fluctuations. Initially, there is a substantial increase from US$42,678 million in 2020 to US$101,175 million in 2022, indicating strong growth in top-line performance. However, in 2023, revenues decline sharply to US$59,553 million, followed by a modest recovery to US$63,627 million in 2024.
Gross profit follows a somewhat similar pattern, rising from US$33,986 million in 2020 to a peak of US$66,831 million in 2022. This is then followed by a major decrease in 2023, where gross profit drops to US$34,599 million, before increasing again to US$45,776 million in 2024. Although the trends in gross profit correlate with revenues, the magnitude of changes suggests some variability in cost management or product mix affecting profitability.
- Gross Profit Margin Trends
- The gross profit margin demonstrates variability across the period. Starting at a high 79.63% in 2020, it declines to 62.48% in 2021. The margin then moderately improves to 66.05% in 2022, followed by a notable dip to 58.1% in 2023. By 2024, the gross profit margin rebounds strongly to 71.94%. This pattern indicates fluctuations in production costs or pricing strategies influencing profitability relative to revenues.
- The peak margin in 2020 suggests a highly efficient cost structure or more profitable product sales in that year. The subsequent decline could be associated with increased costs or changes in sales mix. The recovery in 2024 implies improved cost control or a shift toward higher-margin products.
Overall, the data reveals a period of rapid revenue growth until 2022, followed by contraction and partial recovery. Gross profits mirror this trend, but with greater volatility. The gross profit margin's fluctuation underlines changing cost efficiencies or pricing dynamics during these years. These trends underscore the importance of analyzing underlying operational factors driving both revenue and cost adjustments for a comprehensive understanding of financial performance.
Operating Profit Margin
Pfizer Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Operating Profit Margin, Industry | ||||||
| Health Care | ||||||
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- Over the five-year period, operating income exhibits significant volatility. It rises sharply from 8,930 million USD in 2020 to a peak of 35,789 million USD in 2022. This is followed by a pronounced decline to 1,279 million USD in 2023, before partially recovering to 12,411 million USD in 2024. The fluctuations suggest variability in operational efficiency or extraordinary impacts affecting earnings.
- Revenues
- Revenue trends show steady growth initially, increasing from 42,678 million USD in 2020 to 101,175 million USD in 2022. However, there is a notable contraction to 59,553 million USD in 2023, followed by a modest increase to 63,627 million USD in 2024. This pattern indicates a peak in sales during 2022 with a subsequent reduction and slight recovery in later years.
- Operating Profit Margin
- Operating profit margin follows a similar trajectory to operating income. Starting at 20.92% in 2020, it improves progressively to 35.37% by 2022, demonstrating enhanced profitability relative to sales. In 2023, the margin plunges dramatically to 2.15%, signaling a significant decline in operational profitability for that year. By 2024, the margin rebounds to 19.51%, nearing pre-peak levels but still below the high margin recorded in 2022.
- Overall Analysis
- The data reveals strong operational performance and revenue growth leading up to 2022, followed by a sharp downturn in 2023 that affects both income and profitability deeply. The partial recovery in 2024 suggests some stabilization but not a return to the prior peak levels. These trends might reflect external market conditions, one-time events, or changes in strategic focus impacting the company’s financial outcomes.
Net Profit Margin
Pfizer Inc., net profit margin 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) | ||||||
| Net income attributable to Pfizer Inc. common shareholders | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Profit Margin, Industry | ||||||
| Health Care | ||||||
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 profit margin = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Pfizer Inc. Common Shareholders
- There was a significant increase in net income from 9,616 million USD in 2020 to a peak of 31,372 million USD in 2022. However, this was followed by a sharp decline to 2,119 million USD in 2023, before recovering to 8,031 million USD in 2024. This pattern indicates considerable volatility, with a substantial surge in profit likely related to specific events or market conditions in the earlier years, followed by a drastic drop and partial recovery.
- Revenues
- Revenues showed a strong upward trend from 42,678 million USD in 2020 to 101,175 million USD in 2022. After reaching this peak, revenues decreased significantly to 59,553 million USD in 2023, and then experienced a moderate increase to 63,627 million USD in 2024. This suggests a similar volatility pattern as observed in net income, with revenues nearly doubling over the first two years, then contracting and somewhat stabilizing in subsequent years.
- Net Profit Margin
- The net profit margin increased from 22.53% in 2020 to a high of 31.01% in 2022, indicating improved profitability during this period. However, this margin drastically fell to 3.56% in 2023, reflecting the significant decline in net income relative to revenues. There was some recovery in 2024 with the margin rising to 12.62%, although it remained well below the peak levels of the earlier years. The fluctuation in profitability margins mirrors the volatility seen in both net income and revenues.
Return on Equity (ROE)
Pfizer Inc., ROE 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) | ||||||
| Net income attributable to Pfizer Inc. common shareholders | ||||||
| Total Pfizer Inc. shareholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROE, Industry | ||||||
| Health Care | ||||||
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
ROE = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Total Pfizer Inc. shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Common Shareholders
- The net income exhibited a significant increase from 9,616 million USD in 2020 to a peak of 31,372 million USD in 2022. However, this was followed by a sharp decline to 2,119 million USD in 2023. In 2024, the net income showed some recovery, rising to 8,031 million USD, yet remaining well below the peak levels observed in 2022.
- Total Shareholders’ Equity
- The total shareholders’ equity showed an upward trend from 63,238 million USD in 2020 to a high of 95,661 million USD in 2022. After 2022, there was a moderate decrease each year, settling at 88,203 million USD in 2024. Despite the decline, the equity values in 2023 and 2024 remain higher than those in 2020 and 2021.
- Return on Equity (ROE)
- The ROE followed the pattern of net income closely, starting at 15.21% in 2020 and increasing substantially to 32.79% in 2022. Then, a notable collapse occurred in 2023, with ROE falling to 2.38%. In 2024, ROE partially rebounded to 9.11%, yet it stayed significantly below the levels of 2021 and 2022.
- Summary of Trends and Insights
- The data reveals that the company experienced strong profitability growth through 2022, with both net income and ROE reaching their highest points in that year. The subsequent sharp declines in 2023 indicate a significant reduction in profitability, which negatively influenced ROE despite a relatively stable shareholders’ equity base. The partial recovery in 2024 suggests some improvement, but profitability has not returned to previous peak levels. The equity levels remained generally strong, reflecting continued financial solidity despite fluctuations in earnings performance.
Return on Assets (ROA)
Pfizer Inc., ROA 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) | ||||||
| Net income attributable to Pfizer Inc. common shareholders | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROA, Industry | ||||||
| Health Care | ||||||
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
ROA = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations in Pfizer Inc.'s performance over the five-year period from 2020 to 2024. Net income attributable to common shareholders demonstrated a substantial increase from 9,616 million US dollars in 2020 to a peak of 31,372 million US dollars in 2022, followed by a sharp decline to 2,119 million in 2023 and a moderate recovery to 8,031 million in 2024.
Total assets showed a consistent upward trend from 154,229 million US dollars in 2020, reaching 226,501 million in 2023, before decreasing to 213,396 million in 2024. This indicates growth in the company’s asset base, with a slight contraction in the final year under review.
Return on assets (ROA) followed a pattern similar to net income. It increased from 6.23% in 2020 to a high of 15.91% in 2022, then declined sharply to 0.94% in 2023, and improved to 3.76% in 2024. The ROA trend reflects the company's profitability relative to its assets and suggests that 2023 was a challenging year in terms of generating returns on the asset base.
- Net Income Analysis
- The sharp rise in net income up to 2022 suggests a period of strong earnings performance. The subsequent decline in 2023 indicates possible disruptions or decreased profitability, with some recovery in 2024 but not to previous peak levels.
- Total Assets
- Continuous asset growth until 2023 signals investment or expansion activities, potentially supporting revenue growth. The slight decrease in 2024 may represent asset divestment or revaluation.
- Return on Assets (ROA)
- High ROA values in 2021 and 2022 exhibit efficient use of assets to generate profit. The decline in 2023 suggests decreased efficiency or profitability, possibly tied to the significant net income drop. The partial rebound in 2024 indicates some restoration of profitability, although ROA remains below peak levels.