Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

Analysis of Short-term (Operating) Activity Ratios 
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

Pfizer Inc., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Turnover Ratios
Inventory turnover 1.60 1.65 1.66 2.05 2.15 2.45 2.65 2.31 3.07 3.82 3.62 3.66 3.67 3.40 2.78 1.80 1.28 1.08
Receivables turnover 5.27 5.55 4.18 4.93 5.09 5.33 6.25 7.66 7.57 9.16 6.21 6.68 6.99 7.08 5.81 5.23 4.70 5.28
Payables turnover 3.30 3.17 3.67 4.60 4.19 3.72 5.07 3.92 4.78 5.04 5.49 6.17 6.66 5.53 5.11 3.72 2.68 2.02
Working capital turnover 6.64 8.64 5,036.00 29.17 1.62 2.03 6.89 11.00 3.83 5.05 6.10 4.78 4.29 4.21 3.60 4.58
Average No. Days
Average inventory processing period 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Add: Average receivable collection period 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Operating cycle 298 288 306 252 242 218 196 206 167 135 160 155 151 159 194 273 362 407
Less: Average payables payment period 110 115 99 79 87 98 72 93 76 72 66 59 55 66 71 98 136 181
Cash conversion cycle 188 173 207 173 155 120 124 113 91 63 94 96 96 93 123 175 226 226

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).


The financial data reveals several important trends in operational efficiency and cash flow management over the analyzed periods.

Inventory Turnover and Average Inventory Processing Period
Inventory turnover showed a general increase from 1.08 in early 2021 to a peak of around 3.82 in early 2023, indicating improved efficiency in managing inventory. This was reflected in a decreasing average inventory processing period from 338 days to about 95 days during the same timeframe. However, following this peak performance, inventory turnover declined steadily to approximately 1.6 by early 2025, with the average inventory processing period increasing correspondingly to 229 days. This suggests a recent slowdown in inventory turnover and a lengthening of inventory holding times.
Receivables Turnover and Average Receivable Collection Period
Receivables turnover initially demonstrated some volatility, with values near 5 in early 2021, rising to 9.16 by early 2023, which implies faster collection of receivables. This is supported by a decline in the average receivable collection period from 69 days to as low as 40 days. Nonetheless, after this improvement, turnover declined to around 5.27 by early 2025, and the collection period extended back up to approximately 69 days. This pattern indicates a recent easing in the efficiency of receivables management.
Payables Turnover and Average Payables Payment Period
Payables turnover experienced an increase from 2.02 to a high of about 6.66 between early 2021 and mid-2022, signaling faster payment to suppliers during that period. Correspondingly, the average payables payment period decreased from 181 days to around 55 days. Subsequently, payables turnover declined to roughly 3.3 by early 2025, with the payment period increasing to about 110 days, indicating slower payments to suppliers more recently.
Working Capital Turnover
Working capital turnover showed notable fluctuations, increasing from approximately 3.6 to a peak of 11 in early 2023, then dramatically decreasing thereafter with some irregular spikes in later periods, reaching extremely high values such as 5036 in mid-2024 (likely an anomalous data point). Despite these irregularities, the overall trend suggests periods of both improved and diminished efficiency in utilizing working capital to generate sales.
Operating Cycle and Cash Conversion Cycle
The operating cycle shortened significantly from 407 days to 135 days between early 2021 and early 2023, indicative of better coordination between inventory turnover and receivables collection. It then extended again to nearly 300 days by early 2025, showing a reversal in operational efficiency. The cash conversion cycle followed a similar trajectory, dropping from 226 days to around 63 days at its best point before lengthening back to approximately 188 days, reflecting challenges in efficiently converting resource investment back into cash in the later periods.

In summary, the data illustrates a period of marked improvement in the management of inventory, receivables, and payables up until early 2023, with associated enhancements in working capital utilization and cash flow cycles. This was followed by a gradual deterioration in these efficiencies through to early 2025, suggesting emerging operational challenges or shifts in business conditions that have impacted the overall financial performance metrics.


Turnover Ratios


Average No. Days


Inventory Turnover

Pfizer Inc., inventory turnover calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data (US$ in millions)
Cost of sales 2,845 5,909 5,263 3,300 3,379 7,562 9,269 3,237 4,886 9,649 6,063 8,648 9,984 9,736 9,932 6,996 4,157 2,919 2,007 1,826 1,940
Inventories 10,852 10,851 11,721 11,447 10,892 10,189 10,204 10,310 9,541 8,981 9,513 10,454 9,979 9,059 8,640 8,948 8,493 8,046 9,295 8,564 8,423
Short-term Activity Ratio
Inventory turnover1 1.60 1.65 1.66 2.05 2.15 2.45 2.65 2.31 3.07 3.82 3.62 3.66 3.67 3.40 2.78 1.80 1.28 1.08
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 3.71 4.04 4.09 4.86 4.83 4.98 4.74 4.30 4.53 4.87 5.54 4.99 4.96 5.58 5.76 5.45 5.40 4.65
Amgen Inc. 1.88 1.84 1.75 1.42 1.14 0.89 1.41 1.38 1.31 1.30 1.34 1.40 1.48 1.58 1.53 1.53 1.53 1.58
Bristol-Myers Squibb Co. 5.28 5.46 3.57 3.72 3.70 4.02 4.33 4.39 3.93 4.33 4.77 4.59 4.55 4.74 4.85 5.01 5.61 5.68
Danaher Corp. 3.79 4.15 3.60 3.59 3.73 3.80 3.53 3.58 3.50 4.03 3.80 3.71 3.87 4.16 4.06 4.28 4.34 4.28
Eli Lilly & Co. 0.96 1.11 1.05 1.16 1.17 1.23 1.40 1.37 1.36 1.54 1.86 1.79 1.93 1.88 1.79 1.80 1.68 1.38
Gilead Sciences Inc. 3.55 3.66 3.62 3.33 3.59 3.64 3.49 3.45 3.57 3.75 4.71 4.50 4.50 4.08 3.21 2.99 2.79 2.72
Johnson & Johnson 2.24 2.21 2.15 2.20 2.32 2.37 2.46 2.23 2.36 2.49 2.68 2.69 2.77 2.87 2.86 2.91 2.86 3.04
Merck & Co. Inc. 2.43 2.49 2.45 2.39 2.42 2.54 2.63 2.66 2.72 2.95 3.10 3.06 2.74 2.29 2.73 2.79 2.40 2.45
Regeneron Pharmaceuticals Inc. 0.63 0.64 0.64 0.65 0.66 0.70 0.72 0.69 0.67 0.65 0.83 0.96 1.27 1.25 0.88 0.82 0.56 0.58
Thermo Fisher Scientific Inc. 4.82 5.06 4.62 4.83 4.93 5.06 4.83 4.64 4.62 4.60 4.29 4.03 3.87 3.88 3.90 4.03 4.01 4.02
Vertex Pharmaceuticals Inc. 1.14 1.27 1.37 1.53 1.65 1.71 1.71 1.90 2.06 2.35 2.69 2.70 2.83 2.56 2.58 2.52 2.56 2.62

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Inventory turnover = (Cost of salesQ1 2025 + Cost of salesQ4 2024 + Cost of salesQ3 2024 + Cost of salesQ2 2024) ÷ Inventories
= (2,845 + 5,909 + 5,263 + 3,300) ÷ 10,852 = 1.60

2 Click competitor name to see calculations.


The cost of sales exhibits significant fluctuations over the observed periods. Initially, the cost of sales rises sharply from 1,940 million USD to a peak of 9,932 million USD in October 2021, followed by a moderate decline and subsequent variability. Notably, after the peak, the cost decreases in several quarters, reaching a low point of 2,845 million USD in March 2025. The overall pattern suggests periods of increased production or sales activity followed by downturns or adjustments.

Inventories show a generally increasing trend throughout the timeline. Starting at 8,423 million USD, inventories gradually increase with some fluctuations, peaking near 11,721 million USD in September 2024 before slight decreases in the final quarters. This upward trend in inventories indicates a buildup of stock over time, which may reflect strategic inventory management or changes in demand expectations.

The inventory turnover ratio, available from late 2020 onwards, reveals a rising trend initially, starting near 1.08 and climbing steadily to a peak of 3.82, which occurs around early 2022. Following this peak, the turnover ratio declines gradually, dropping to approximately 1.6 by March 2025. This pattern indicates an initial improvement in how efficiently inventories are converted into sales, eventually followed by a slowdown in turnover efficiency. The decreasing turnover ratio in later periods might suggest challenges in inventory management or slowing sales relative to stock levels.

Cost of Sales
Significant increase between early 2020 to late 2021, followed by fluctuations and an overall decline towards early 2025.
Inventories
Gradual increase over the entire period, peaking in late 2024, indicating stock accumulation.
Inventory Turnover
Initially improving up to early 2022, followed by a steady decline until early 2025, suggesting diminishing efficiency in inventory utilization.

Receivables Turnover

Pfizer Inc., receivables turnover calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data (US$ in millions)
Revenues 13,715 17,763 17,702 13,283 14,879 14,568 13,492 13,007 18,486 24,289 22,638 27,742 25,661 23,838 24,035 18,899 14,516 11,684 10,277 9,864 10,083
Trade accounts receivable, net of allowance for doubtful accounts 11,845 11,463 14,451 11,393 10,989 11,177 11,086 10,231 12,305 10,952 16,076 15,155 13,225 11,479 11,897 10,587 9,864 7,930 10,012 9,128 9,881
Short-term Activity Ratio
Receivables turnover1 5.27 5.55 4.18 4.93 5.09 5.33 6.25 7.66 7.57 9.16 6.21 6.68 6.99 7.08 5.81 5.23 4.70 5.28
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 4.60 5.16 4.84 4.69 4.55 4.87 4.83 4.88 4.95 5.16 5.38 5.10 5.29 5.63 5.94 5.42 5.24 5.19
Amgen Inc. 4.03 4.72 4.26 4.26 4.16 3.70 4.17 4.34 4.34 4.46 4.60 4.62 4.81 4.96 5.11 5.39 5.41 5.36
Danaher Corp. 6.79 6.75 6.77 7.15 7.02 6.09 6.15 6.64 6.89 6.40 7.09 6.81 6.87 6.36 6.69 6.51 6.28 5.51
Eli Lilly & Co. 4.07 4.09 3.97 3.53 4.56 3.75 3.93 3.93 3.68 4.14 4.35 4.57 4.64 4.24 4.69 4.58 4.56 4.18
Gilead Sciences Inc. 6.51 6.47 6.14 5.92 5.84 5.78 5.68 6.43 6.43 5.65 6.16 6.60 7.18 6.01 5.95 6.34 6.43 4.98
Johnson & Johnson 5.58 5.98 5.42 5.48 5.73 5.73 5.91 5.36 5.65 5.88 6.04 5.92 6.08 6.14 6.13 6.00 5.64 6.08
Merck & Co. Inc. 5.92 6.24 5.55 5.37 5.40 5.81 5.71 5.29 5.56 6.27 6.22 5.93 5.49 5.28 5.56 6.00 5.65 6.11
Regeneron Pharmaceuticals Inc. 2.53 2.29 2.27 2.36 2.51 2.31 2.35 2.47 2.42 2.28 2.47 2.76 3.41 2.66 2.48 1.77 2.20 2.07
Thermo Fisher Scientific Inc. 5.07 5.23 5.13 5.33 5.36 5.21 5.19 5.43 5.53 5.53 5.76 5.53 5.21 4.92 7.03 6.99 6.46 5.61
Vertex Pharmaceuticals Inc. 6.15 6.85 6.07 6.24 5.68 6.31 6.27 6.11 5.95 6.19 6.28 6.26 6.15 6.66 6.48 7.19 6.56 7.01

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Receivables turnover = (RevenuesQ1 2025 + RevenuesQ4 2024 + RevenuesQ3 2024 + RevenuesQ2 2024) ÷ Trade accounts receivable, net of allowance for doubtful accounts
= (13,715 + 17,763 + 17,702 + 13,283) ÷ 11,845 = 5.27

2 Click competitor name to see calculations.


The quarterly financial data reveals several notable trends over the analyzed periods. Revenues demonstrate a fluctuating pattern with significant variability across quarters. Initially, revenues ranged around $10 billion, rising sharply to a peak near $24 billion in late 2021. Subsequently, a decline occurred with values diminishing to approximately $13 billion by mid-2023, followed by a partial recovery to near $18 billion in late 2024 before decreasing again in early 2025.

Trade accounts receivable, net of allowance for doubtful accounts, generally follow an upward trajectory from about $7.9 billion early in the dataset to a peak above $16 billion around late 2022. Subsequently, there is a downturn in receivables values, fluctuating between roughly $10 billion to $14 billion from 2023 onward, indicating some volatility in accounts receivable management or collection efficiency during the latter periods.

The receivables turnover ratio presents a varied trend, starting at 5.28 and rising to a high of 9.16 in the first quarter of 2023, indicating improved efficiency in collecting receivables during that period. However, after this peak, the ratio declines steadily to values near 4.18 by late 2024 before slightly recovering towards 5.55 and 5.27 in the final quarters. This decreasing trend suggests a slowdown in the pace of collecting receivables or possible extension of credit terms in recent periods.

Revenues
Show a pronounced peak in late 2021 followed by a decline and partial recovery, indicating variability in sales or external market conditions affecting revenue generation.
Trade Accounts Receivable
Increase steadily through 2022, then fluctuate with a declining trend in recent quarters, possibly reflecting changes in credit management or customer payment behavior.
Receivables Turnover Ratio
Improved collection efficiency is evident up to early 2023, followed by a decline, suggesting slower collection processes or altered receivables management strategies thereafter.

Payables Turnover

Pfizer Inc., payables turnover calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data (US$ in millions)
Cost of sales 2,845 5,909 5,263 3,300 3,379 7,562 9,269 3,237 4,886 9,649 6,063 8,648 9,984 9,736 9,932 6,996 4,157 2,919 2,007 1,826 1,940
Trade accounts payable 5,240 5,633 5,314 5,106 5,591 6,710 5,338 6,081 6,123 6,809 6,267 6,208 5,506 5,578 4,698 4,327 4,064 4,309 4,141 3,872 3,972
Short-term Activity Ratio
Payables turnover1 3.30 3.17 3.67 4.60 4.19 3.72 5.07 3.92 4.78 5.04 5.49 6.17 6.66 5.53 5.11 3.72 2.68 2.02
Benchmarks
Payables Turnover, Competitors2
Amgen Inc. 5.25 6.74 5.99 5.01 6.10 5.32 5.22 5.67 4.97 4.08 5.30 5.09 4.65 4.72 5.41 4.92 4.40 4.33
Bristol-Myers Squibb Co. 3.52 3.88 3.43 3.05 3.12 3.28 3.75 3.38 3.20 3.33 3.82 3.41 3.25 3.37 3.89 2.97 3.69 4.34
Danaher Corp. 5.57 5.52 6.04 5.84 5.88 5.58 5.63 5.82 5.68 5.45 5.61 5.00 5.04 4.48 5.20 5.54 5.29 4.79
Eli Lilly & Co. 2.61 2.61 2.70 2.56 2.88 2.73 2.81 2.65 3.07 3.43 4.24 4.21 5.24 4.38 4.46 4.30 3.75 3.41
Gilead Sciences Inc. 8.47 7.50 7.49 12.57 10.69 11.81 9.90 9.06 8.99 6.25 11.22 11.89 11.43 9.36 9.18 8.70 8.71 5.42
Johnson & Johnson 2.97 2.66 3.03 3.03 3.23 2.76 3.29 2.75 3.05 2.66 3.08 3.15 3.26 2.70 3.32 3.38 3.34 2.99
Merck & Co. Inc. 3.98 3.72 4.26 4.39 4.48 4.11 4.59 4.58 4.34 4.08 5.16 4.86 4.25 2.96 4.54 3.93 3.81 3.37
Regeneron Pharmaceuticals Inc. 2.84 2.50 3.87 3.32 2.67 2.99 3.43 3.14 2.69 2.65 3.74 4.00 5.39 4.32 4.23 3.42 2.23 2.36
Thermo Fisher Scientific Inc. 8.25 8.18 9.63 9.85 9.91 8.97 10.41 10.82 9.35 7.67 9.93 8.84 7.96 6.83 8.31 8.88 8.12 7.45
Vertex Pharmaceuticals Inc. 3.49 3.71 3.73 4.27 3.81 3.46 3.13 3.16 3.41 3.55 8.23 5.01 5.52 4.64 6.73 6.35 5.99 4.75

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Payables turnover = (Cost of salesQ1 2025 + Cost of salesQ4 2024 + Cost of salesQ3 2024 + Cost of salesQ2 2024) ÷ Trade accounts payable
= (2,845 + 5,909 + 5,263 + 3,300) ÷ 5,240 = 3.30

2 Click competitor name to see calculations.


Cost of Sales
The cost of sales exhibits significant fluctuations over the reported periods. Starting at 1,940 million US dollars in March 2020, it initially shows a moderate increase, reaching a peak of 9,932 million in October 2021. After this peak, the cost experiences volatility, with notable declines and rises, including a drop to 2,845 million by March 2025. This variability suggests periods of increased production or procurement costs followed by phases of reduced expense or potential cost control measures.
Trade Accounts Payable
Trade accounts payable demonstrate a generally increasing trend until December 2022, rising from 3,972 million US dollars in March 2020 to 6,809 million. Post this peak, values fluctuate within a range but show a slight downward tendency toward the end of the dataset, ending at 5,240 million by March 2025. This pattern reflects changes in credit terms or supplier payment practices, indicative of shifts in working capital management.
Payables Turnover Ratio
The payables turnover ratio improves markedly from 2.02 in December 2020, reaching a maximum of 6.66 in April 2022, indicating a faster payment cycle to suppliers during this period. Following this peak, the ratio declines steadily, stabilizing around the 3.2 to 4.6 range toward the end of the periods reported. This decline suggests a lengthening of payment terms or slower payables settlement, which could be associated with cash flow management strategies or negotiating supplier terms.
Summary Insights
Overall, the trends in cost of sales and trade accounts payable show variability that may reflect operational scaling, supply chain factors, or strategic procurement decisions. The payables turnover ratio's initial increase followed by a decline implies a shift from accelerated payments to a more extended payment cycle, which could affect liquidity and supplier relations. The interplay between these metrics highlights active management of cost structures and working capital across the periods analyzed.

Working Capital Turnover

Pfizer Inc., working capital turnover calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data (US$ in millions)
Current assets 45,861 50,358 43,223 37,825 42,415 43,333 74,012 73,347 50,078 51,259 70,403 67,466 54,420 59,693 57,900 48,814 39,533 35,067 47,739 46,424 34,738
Less: Current liabilities 36,452 42,995 43,211 43,819 40,497 47,794 31,136 34,647 36,562 42,138 44,314 47,410 39,268 42,671 41,803 35,664 26,652 25,920 34,154 32,723 33,890
Working capital 9,409 7,363 12 (5,994) 1,918 (4,461) 42,876 38,700 13,516 9,121 26,089 20,056 15,152 17,022 16,097 13,150 12,881 9,147 13,585 13,701 848
 
Revenues 13,715 17,763 17,702 13,283 14,879 14,568 13,492 13,007 18,486 24,289 22,638 27,742 25,661 23,838 24,035 18,899 14,516 11,684 10,277 9,864 10,083
Short-term Activity Ratio
Working capital turnover1 6.64 8.64 5,036.00 29.17 1.62 2.03 6.89 11.00 3.83 5.05 6.10 4.78 4.29 4.21 3.60 4.58
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 130.12
Amgen Inc. 8.36 5.40 4.83 5.19 3.39 2.25 0.81 0.84 0.82 3.82 2.52 3.67 4.34 3.37 2.55 5.35 2.84 2.55
Bristol-Myers Squibb Co. 6.87 7.79 8.49 12.50 15.56 4.60 10.47 5.53 5.55 8.30 5.75 4.92 6.24 3.95 4.43 4.24 4.25 3.72
Danaher Corp. 8.27 8.85 8.73 8.10 3.60 4.22 2.18 3.08 3.81 4.20 5.00 5.43 5.91 8.40 7.98 3.12 3.45 3.48
Eli Lilly & Co. 4.38 10.32 6.06 12.62 5.45 31.79 12.21 5.77 31.84 14.71 19.45 8.19 8.33 6.73 12.14 5.21 4.93
Gilead Sciences Inc. 6.27 3.99 9.22 17.98 26.58 5.61 6.74 84.15 9.14 8.42 8.56 6.87 6.68 8.54 7.25 7.09 7.06 5.30
Johnson & Johnson 6.10 15.94 58.86 22.29 10.35 11.81 9.37 14.06 23.02 4.88 5.02 5.57 5.95 5.97 5.93 7.26 9.44
Merck & Co. Inc. 6.19 6.19 5.86 5.14 9.68 9.29 6.69 8.86 5.63 5.16 5.58 6.39 6.09 7.62 6.51 6.97 84.97 109.83
Regeneron Pharmaceuticals Inc. 1.01 0.97 0.88 0.87 0.86 0.82 0.87 0.92 0.90 0.96 1.09 1.14 1.46 1.59 1.35 1.29 1.35 1.20
Thermo Fisher Scientific Inc. 4.20 4.87 4.61 3.96 4.38 4.05 4.86 7.40 10.13 5.46 5.40 6.03 6.13 5.87 2.30 3.10 3.36 2.76
Vertex Pharmaceuticals Inc. 1.78 1.83 1.82 1.92 1.07 0.93 0.87 0.90 0.93 0.85 0.90 0.93 0.97 1.02 1.03 1.01 0.97 0.99

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Working capital turnover = (RevenuesQ1 2025 + RevenuesQ4 2024 + RevenuesQ3 2024 + RevenuesQ2 2024) ÷ Working capital
= (13,715 + 17,763 + 17,702 + 13,283) ÷ 9,409 = 6.64

2 Click competitor name to see calculations.


The financial data reveals considerable fluctuations in working capital, revenues, and working capital turnover across the observed quarters. A detailed analysis of each item follows to discern patterns and notable changes over the period.

Working Capital
The company’s working capital exhibits significant volatility throughout the reviewed quarters. Initially, it begins at a modest value of 848 million US$ in March 2020, sharply rising to a peak of 38,700 million US$ by July 2023. This upward trajectory suggests an accumulation of current assets relative to current liabilities during this timeframe.
However, several quarters show negative values, notably -4,461 million US$ in December 2023 and -5,994 million US$ in September 2024, indicating periods where current liabilities exceeded current assets. This suggests intervals of tighter liquidity or increased short-term obligations.
Overall, the working capital does not maintain a consistent trend but fluctuates, with some quarters evidencing notably high positive values and others displaying deficits. This irregularity may point to episodic changes in operational activities, cash management, or short-term financing strategies.
Revenues
Revenues display a general upward trend from March 2020 at 10,083 million US$ to a high point of 27,742 million US$ in July 2022. This strong growth over two years indicates expanding sales or successful product penetration.
Following this peak, revenues decline steadily over subsequent quarters, dropping to approximately 13,715 million US$ by March 2025. This downward trend after mid-2022 might reflect market saturation, increased competition, supply challenges, or changes in product demand.
The variability in revenues alongside the fluctuating working capital points toward a dynamic operational environment, where sales growth phases are interspersed with slower revenue periods.
Working Capital Turnover
The working capital turnover ratio, a measure of efficiency in using working capital to generate sales, shows wide variations, reflecting the fluctuations in both working capital and revenues.
For example, the ratio ranges from 1.62 in December 2023 to a notably high figure of 29.17 at an unspecified quarter, and spikes dramatically to 5,036 and 8.64 in later quarters. The exceptionally high numbers may suggest either near-zero or negative working capital values, causing the ratio to inflate or become less meaningful.
Periods with higher turnover ratios indicate more efficient use of working capital to drive revenues, whereas lower ratios could denote inefficient capital utilization or temporary operational constraints.
Given the erratic nature of this ratio and the presence of missing values, caution should be used when interpreting these figures, as extreme values may reflect accounting or operational anomalies rather than sustainable performance.

In summary, the data indicates that the company experienced significant revenue growth through mid-2022, accompanied by strong but volatile working capital positions. Subsequent quarters illustrate a contraction in revenues and erratic liquidity, as reflected in the working capital and turnover ratios. The trends emphasize fluctuating operational conditions and potential challenges in working capital management during the most recent periods.


Average Inventory Processing Period

Pfizer Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data
Inventory turnover 1.60 1.65 1.66 2.05 2.15 2.45 2.65 2.31 3.07 3.82 3.62 3.66 3.67 3.40 2.78 1.80 1.28 1.08
Short-term Activity Ratio (no. days)
Average inventory processing period1 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 98 90 89 75 75 73 77 85 81 75 66 73 74 65 63 67 68 79
Amgen Inc. 195 199 209 257 321 411 259 265 279 281 272 260 247 231 239 239 239 231
Bristol-Myers Squibb Co. 69 67 102 98 99 91 84 83 93 84 76 79 80 77 75 73 65 64
Danaher Corp. 96 88 101 102 98 96 104 102 104 91 96 98 94 88 90 85 84 85
Eli Lilly & Co. 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Gilead Sciences Inc. 103 100 101 110 102 100 105 106 102 97 78 81 81 89 114 122 131 134
Johnson & Johnson 163 165 169 166 158 154 149 164 155 147 136 136 132 127 128 125 128 120
Merck & Co. Inc. 150 147 149 153 151 144 139 137 134 124 118 119 133 159 134 131 152 149
Regeneron Pharmaceuticals Inc. 582 572 573 562 553 519 508 532 549 562 440 379 287 292 415 445 653 625
Thermo Fisher Scientific Inc. 76 72 79 76 74 72 76 79 79 79 85 91 94 94 94 91 91 91
Vertex Pharmaceuticals Inc. 320 287 267 238 222 214 213 192 177 156 136 135 129 143 142 145 142 139

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.60 = 229

2 Click competitor name to see calculations.


Inventory Turnover Ratio
The inventory turnover ratio demonstrates a notable upward trend from April 2021 to April 2023, increasing from 1.08 to a peak of 3.82. This indicates an improvement in the efficiency of inventory management during this period. Following this peak, a decline is observed from April 2023 through March 2025, dropping from 3.07 to 1.60. The decrease suggests a reduction in the rate at which inventory is sold or used, implying a slowing turnover pace in the later periods.
Average Inventory Processing Period
The average inventory processing period, measured in days, exhibits an inverse pattern relative to the inventory turnover ratio. Initially, from April 2021 to April 2023, the processing period decreases significantly from 338 days to 95 days, reflecting more rapid inventory turnover and enhanced operational efficiency. However, from April 2023 onward, there is a gradual increase in the number of days, rising to 229 days by March 2025. This increase corresponds to the decline in inventory turnover ratio, indicating a lengthening of the inventory holding period and potentially slower movement of goods through the inventory system.
Overall Trends and Insights
The data reveals a clear cyclical pattern in inventory management performance over the examined time frame. The initial improvement phase suggests successful strategies in inventory utilization and sales acceleration, resulting in faster turnover and reduced inventory days. In contrast, the subsequent decline phase points to potential challenges in maintaining these efficiencies, possibly due to changes in market demand, supply chain disruptions, or alterations in product mix. Maintaining a balance between inventory turnover and processing periods will be crucial to optimize working capital and operational performance in future periods.

Average Receivable Collection Period

Pfizer Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data
Receivables turnover 5.27 5.55 4.18 4.93 5.09 5.33 6.25 7.66 7.57 9.16 6.21 6.68 6.99 7.08 5.81 5.23 4.70 5.28
Short-term Activity Ratio (no. days)
Average receivable collection period1 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 79 71 75 78 80 75 76 75 74 71 68 72 69 65 61 67 70 70
Amgen Inc. 91 77 86 86 88 99 88 84 84 82 79 79 76 74 71 68 67 68
Danaher Corp. 54 54 54 51 52 60 59 55 53 57 51 54 53 57 55 56 58 66
Eli Lilly & Co. 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Gilead Sciences Inc. 56 56 59 62 62 63 64 57 57 65 59 55 51 61 61 58 57 73
Johnson & Johnson 65 61 67 67 64 64 62 68 65 62 60 62 60 59 60 61 65 60
Merck & Co. Inc. 62 58 66 68 68 63 64 69 66 58 59 62 66 69 66 61 65 60
Regeneron Pharmaceuticals Inc. 144 160 161 155 146 158 156 148 151 160 148 132 107 137 147 206 166 177
Thermo Fisher Scientific Inc. 72 70 71 68 68 70 70 67 66 66 63 66 70 74 52 52 56 65
Vertex Pharmaceuticals Inc. 59 53 60 58 64 58 58 60 61 59 58 58 59 55 56 51 56 52

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.27 = 69

2 Click competitor name to see calculations.


The receivables turnover ratio demonstrates notable fluctuations over the observed periods, indicating variations in the efficiency with which the company collects its accounts receivable. Starting from a ratio of 5.28, the turnover increased steadily to reach a peak of 9.16, reflecting improved collection efficiency. However, subsequent periods show a decline, with the ratio dropping back to levels around 4.18 before a modest recovery to 5.27 toward the latest period.

Correspondingly, the average receivable collection period, expressed in days, exhibits an inverse pattern relative to the turnover ratio. Initially, the collection period decreased from 69 days to a low of 40 days, demonstrating accelerated collections. In later periods, the number of days increased again, reaching as high as 87 days before improving slightly to 69 days in the final period.

Overall, these trends suggest the company experienced periods of increased efficiency in receivables management, particularly notable around the peak turnover and low collection period intervals. Nonetheless, the more recent data points indicate a deterioration in collection efficiency, as evidenced by longer collection times and lower turnover ratios. This pattern may warrant further investigation to identify underlying causes and assess any impact on liquidity and working capital management.


Operating Cycle

Pfizer Inc., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data
Average inventory processing period 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Average receivable collection period 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Short-term Activity Ratio
Operating cycle1 298 288 306 252 242 218 196 206 167 135 160 155 151 159 194 273 362 407
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 177 161 164 153 155 148 153 160 155 146 134 145 143 130 124 134 138 149
Amgen Inc. 286 276 295 343 409 510 347 349 363 363 351 339 323 305 310 307 306 299
Danaher Corp. 150 142 155 153 150 156 163 157 157 148 147 152 147 145 145 141 142 151
Eli Lilly & Co. 469 418 441 419 392 395 354 360 367 325 280 284 268 280 282 283 297 352
Gilead Sciences Inc. 159 156 160 172 164 163 169 163 159 162 137 136 132 150 175 180 188 207
Johnson & Johnson 228 226 236 233 222 218 211 232 220 209 196 198 192 186 188 186 193 180
Merck & Co. Inc. 212 205 215 221 219 207 203 206 200 182 177 181 199 228 200 192 217 209
Regeneron Pharmaceuticals Inc. 726 732 734 717 699 677 664 680 700 722 588 511 394 429 562 651 819 802
Thermo Fisher Scientific Inc. 148 142 150 144 142 142 146 146 145 145 148 157 164 168 146 143 147 156
Vertex Pharmaceuticals Inc. 379 340 327 296 286 272 271 252 238 215 194 193 188 198 198 196 198 191

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 229 + 69 = 298

2 Click competitor name to see calculations.


Average Inventory Processing Period
The average inventory processing period demonstrates a general decreasing trend starting from 338 days at the beginning of the available data. It declines steadily to around 95 days by April 2, 2023, indicating improved efficiency in inventory turnover. However, following this point, the period fluctuates and shows an upward trend, increasing to 229 days by March 30, 2025. This suggests a slowdown in inventory processing efficiency in the most recent periods.
Average Receivable Collection Period
The receivable collection period initially increases from 69 days to a peak of 78 days and then decreases to 40 days by April 2022, signaling improved collection efficiency. Following this low point, the collection period gradually rises, reaching 87 days by December 31, 2024, before slightly declining to 66-69 days in the final observed periods. This pattern indicates variability in accounts receivable management, with some recent inefficiencies in collections.
Operating Cycle
The operating cycle follows a downward trend from 407 days initially down to 135 days in April 2022, reflecting enhanced overall operational efficiency by reducing the combined duration of inventory processing and receivables collection. After this minimum point, the cycle lengthens progressively, peaking at 306 days by March 2025. This reversal suggests that operational efficiency declined in the later periods, potentially driven by increases in both inventory processing and receivable collection times.

Average Payables Payment Period

Pfizer Inc., average payables payment period calculation (quarterly data)

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data
Payables turnover 3.30 3.17 3.67 4.60 4.19 3.72 5.07 3.92 4.78 5.04 5.49 6.17 6.66 5.53 5.11 3.72 2.68 2.02
Short-term Activity Ratio (no. days)
Average payables payment period1 110 115 99 79 87 98 72 93 76 72 66 59 55 66 71 98 136 181
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amgen Inc. 70 54 61 73 60 69 70 64 73 90 69 72 78 77 67 74 83 84
Bristol-Myers Squibb Co. 104 94 106 120 117 111 97 108 114 109 96 107 112 108 94 123 99 84
Danaher Corp. 66 66 60 63 62 65 65 63 64 67 65 73 72 82 70 66 69 76
Eli Lilly & Co. 140 140 135 142 127 134 130 138 119 106 86 87 70 83 82 85 97 107
Gilead Sciences Inc. 43 49 49 29 34 31 37 40 41 58 33 31 32 39 40 42 42 67
Johnson & Johnson 123 137 120 121 113 132 111 133 120 137 118 116 112 135 110 108 109 122
Merck & Co. Inc. 92 98 86 83 81 89 80 80 84 89 71 75 86 123 80 93 96 108
Regeneron Pharmaceuticals Inc. 129 146 94 110 137 122 106 116 136 138 98 91 68 84 86 107 164 155
Thermo Fisher Scientific Inc. 44 45 38 37 37 41 35 34 39 48 37 41 46 53 44 41 45 49
Vertex Pharmaceuticals Inc. 105 98 98 85 96 106 117 115 107 103 44 73 66 79 54 57 61 77

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.30 = 110

2 Click competitor name to see calculations.


The analysis of the payables turnover ratio over the observed periods reveals a significant fluctuation with an overall trend of initial increase followed by notable declines. The ratio was unreported before December 31, 2020, when it registered at 2.02, subsequently rising to a peak of 6.66 by July 3, 2022. After this peak, the ratio begins a downward trajectory with some variability, decreasing to 3.17 by March 30, 2025.

Correspondingly, the average payables payment period, measured in days, exhibits an inverse relationship with the payables turnover ratio. Starting at 181 days on December 31, 2020, it declines to 55 days by July 3, 2022, coinciding with the peak payables turnover ratio. Following that, the payment period extends again, reaching 110 days by March 30, 2025.

Payables Turnover Ratio
Initial reporting shows a gradual increase from 2.02 to a high of 6.66, indicating improved efficiency in paying suppliers during this phase.
Post-peak, the ratio declines to around 3.17 towards the end of the timeline, suggesting a reduced pace in settling payables.
Average Payables Payment Period
The payment period decreases sharply from 181 days to 55 days, reflecting quicker payments corresponding to the increased turnover ratio.
Subsequently, it lengthens back to 110 days, indicating slower payment practices aligning with the falling turnover ratio.

This analysis points toward a phase of strengthening liquidity management and creditor payment efficiency up to mid-2022, followed by a period of less aggressive payment terms or possibly increasing payables balances. The inverse correlation between the two metrics is consistent with typical financial behavior, where a higher turnover rate corresponds to a shorter payment period. The later trend may warrant further examination to understand underlying causes, such as changes in credit policy, supplier negotiations, or cash flow considerations.


Cash Conversion Cycle

Pfizer Inc., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 30, 2025 Dec 31, 2024 Sep 29, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 1, 2023 Jul 2, 2023 Apr 2, 2023 Dec 31, 2022 Oct 2, 2022 Jul 3, 2022 Apr 3, 2022 Dec 31, 2021 Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020
Selected Financial Data
Average inventory processing period 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Average receivable collection period 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Average payables payment period 110 115 99 79 87 98 72 93 76 72 66 59 55 66 71 98 136 181
Short-term Activity Ratio
Cash conversion cycle1 188 173 207 173 155 120 124 113 91 63 94 96 96 93 123 175 226 226
Benchmarks
Cash Conversion Cycle, Competitors2
Amgen Inc. 216 222 234 270 349 441 277 285 290 273 282 267 245 228 243 233 223 215
Danaher Corp. 84 76 95 90 88 91 98 94 93 81 82 79 75 63 75 75 73 75
Eli Lilly & Co. 329 278 306 277 265 261 224 222 248 219 194 197 198 197 200 198 200 245
Gilead Sciences Inc. 116 107 111 143 130 132 132 123 118 104 104 105 100 111 135 138 146 140
Johnson & Johnson 105 89 116 112 109 86 100 99 100 72 78 82 80 51 78 78 84 58
Merck & Co. Inc. 120 107 129 138 138 118 123 126 116 93 106 106 113 105 120 99 121 101
Regeneron Pharmaceuticals Inc. 597 586 640 607 562 555 558 564 564 584 490 420 326 345 476 544 655 647
Thermo Fisher Scientific Inc. 104 97 112 107 105 101 111 112 106 97 111 116 118 115 102 102 102 107
Vertex Pharmaceuticals Inc. 274 242 229 211 190 166 154 137 131 112 150 120 122 119 144 139 137 114

Based on: 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).

1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 229 + 69110 = 188

2 Click competitor name to see calculations.


Average Inventory Processing Period
The average inventory processing period shows a decreasing trend from April 2021 through April 2022, declining from 338 days to 95 days, indicating improved efficiency in inventory turnover. However, beginning from April 2022, the period starts to gradually increase again, reaching a peak of 229 days by March 2025. This reversal suggests a possible slowdown in inventory movement or increased inventory holding times in later periods.
Average Receivable Collection Period
The receivable collection period initially fluctuates between 69 and 40 days from April 2021 to April 2023, reaching its lowest point at 40 days. Afterward, there is a general upward trend in collection time, increasing to 87 days by December 2024 before slightly retracting to 66-69 days by March 2025. This variability indicates some challenges in receivables management with a tendency toward longer collection times in recent periods.
Average Payables Payment Period
The payables payment period experiences a notable decline from 181 days in April 2021 to a low of 55 days by July 2021, reflecting quicker payments to suppliers. Following this, the period gradually increases again, with some fluctuations, ultimately reaching 115 days by March 2025. This suggests a strategic extension of payment terms or delayed payments to suppliers in the most recent quarters.
Cash Conversion Cycle
The cash conversion cycle mirrors the trends seen in inventory and receivables. It decreases from 226 days in April 2021 to a low of 63 days by April 2023, signifying improved cash flow efficiency. This improvement is followed by an upward revision, peaking at 207 days in September 2024 before slightly decreasing to 173-188 days toward early 2025. The increase denotes a lengthening of the time taken to convert resources into cash, which could impact working capital management negatively.
Overall Insights
The financial data indicate an initial period of operational improvement and efficiency gains from early 2021 through mid-2023, characterized by shortened inventory processing, receivables collection, and cash conversion cycles. However, from mid-2023 onwards, there is a consistent reversal in these trends, with increasing durations in all key metrics, pointing toward potential challenges in working capital management, possibly due to changing market conditions or strategic shifts in payment terms and inventory policies.