Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Pfizer Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-29), 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).
The analysis of the quarterly financial ratios of the company reveals several noteworthy trends in operational efficiency over the reported periods.
- Inventory Turnover and Inventory Processing Period
- The inventory turnover ratio demonstrated a rising trend from 1.28 to 3.82 between early 2021 and the end of 2022, indicative of improved inventory management and faster movement of goods. However, starting in 2023, this ratio declined steadily to 1.52 by mid-2025. Correspondingly, the average inventory processing period decreased from 284 days to 95 days over 2021–2022, reflecting quicker inventory turnover, but then lengthened again from 119 days in early 2023 to 239 days by mid-2025. This inverse relationship suggests a reduction in inventory management efficiency in the later periods.
- Receivables Turnover and Collection Period
- Receivables turnover rose from 4.7 in early 2021 to a peak of 9.16 at the end of 2021, signaling more rapid collection of receivables; however, this was followed by a decline to about 5.27 by mid-2025. The average receivable collection period decreased from 78 days to 40 days by the end of 2021, then lengthened consistently thereafter to 69 days by mid-2025. The widening collection period in recent quarters indicates slower receivables collection, negatively impacting liquidity.
- Payables Turnover and Payment Period
- The payables turnover increased from 2.68 in early 2021 to 6.66 by the second quarter of 2022, suggesting faster payment to suppliers, then declined irregularly to 3.44 by mid-2025. The average payables payment period contracted from 136 days to 55 days through mid-2022, then steadily increased to 115 days by mid-2025. This lengthening indicates a strategic delay in payments or potential liquidity constraints affecting payment practices.
- Working Capital Turnover
- The working capital turnover ratio showed significant volatility, increasing from 3.6 in early 2021 to 11 by the end of 2022, followed by erratic fluctuations and an extreme spike to 5036 in early 2025 (likely an outlier or data irregularity). Excluding this anomaly, the ratio appears variable, indicating inconsistent efficiency in utilizing working capital to generate revenue.
- Operating Cycle and Cash Conversion Cycle
- The operating cycle shortened markedly from 362 days to 135 days through 2022, reflecting expedited business processes and cash recovery. Post-2022, it reversed course, increasing to 308 days by mid-2025. The cash conversion cycle followed a similar pattern, reducing from 226 days to 63 days up to late 2022, then rising to 202 days by mid-2025. These trends signify initial improvements in working capital efficiency, which later deteriorated, potentially pressuring cash flow.
Overall, the company initially improved its operational efficiency through quicker inventory turnover, faster receivables collection, and shortened payment cycles up to 2022. However, from 2023 onwards, there is a clear reversal with lengthening days in inventory processing, receivable collection, and payable payment periods, leading to longer operating and cash conversion cycles. These developments suggest emerging challenges in managing working capital effectively, which may impact liquidity and operational cash flows if the trends persist.
Turnover Ratios
Average No. Days
Inventory Turnover
Pfizer Inc., inventory turnover calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of sales | 3,778) | 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) | ||||||
| Inventories | 11,669) | 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) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 1.52 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 3.42 | 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 | ||||||
| Amgen Inc. | 1.88 | 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 | ||||||
| Bristol-Myers Squibb Co. | 5.18 | 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 | ||||||
| Danaher Corp. | 3.60 | 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 | ||||||
| Eli Lilly & Co. | 0.84 | 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 | ||||||
| Gilead Sciences Inc. | 3.40 | 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 | ||||||
| Johnson & Johnson | 2.17 | 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 | ||||||
| Merck & Co. Inc. | 2.25 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.64 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 4.57 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 1.06 | 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 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Inventory turnover
= (Cost of salesQ2 2025
+ Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024)
÷ Inventories
= (3,778 + 2,845 + 5,909 + 5,263)
÷ 11,669 = 1.52
2 Click competitor name to see calculations.
- Cost of Sales
- Over the analyzed periods, the cost of sales exhibits notable fluctuations. Initially, there is a rising trend reaching a peak in October 2021. Following this peak, the cost generally declines with intermittent increases, particularly visible in the final quarters of 2023 and early 2024. The data towards the most recent quarters show a reduction in costs relative to the earlier peaks, suggesting periods of either cost management or varying sales volumes affecting production expenses.
- Inventories
- Inventory levels demonstrate a gradual increasing trend throughout the periods. Starting from approximately 8,493 million US dollars, inventories rise steadily to peak above 11,000 million in the latter quarters of 2024 and early 2025. This consistent growth in inventories indicates either an accumulation perhaps in anticipation of higher demand, or slower inventory turnover in recent periods. The increase is relatively steady with no abrupt changes, pointing to strategic inventory management or supply chain adjustments.
- Inventory Turnover Ratio
- The inventory turnover ratio shows significant variation over time. Initially, the ratio improves from 1.28 to a high of 3.82 by the end of 2022, indicating increased efficiency in inventory management or stronger sales velocity relative to inventory levels. However, from 2023 onwards, there is a noticeable decline in the turnover ratio, falling back to around 1.52 by mid-2025. This decline suggests a reduction in sales efficiency or increased inventory holding times, potentially indicating slower demand or overstocking issues during the more recent periods.
- Summary of Trends
- The pattern of rising inventories combined with a declining inventory turnover ratio in recent periods highlights a potential decrease in operational efficiency with respect to inventory usage. Concurrently, cost of sales fluctuates but shows a tendency to decrease from its early peak, which may reflect changes in production cost structure or sales volume adjustments. Overall, the data suggests that while inventory build-up has been steady, the company might be facing challenges in converting inventory into sales at the earlier pace seen around 2021-2022.
Receivables Turnover
Pfizer Inc., receivables turnover calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 14,653) | 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) | ||||||
| Trade accounts receivable, net of allowance for doubtful accounts | 12,078) | 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) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 5.29 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 4.62 | 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 | ||||||
| Amgen Inc. | 3.85 | 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 | ||||||
| Danaher Corp. | 6.74 | 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 | ||||||
| Eli Lilly & Co. | 3.76 | 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 | ||||||
| Gilead Sciences Inc. | 6.01 | 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 | ||||||
| Johnson & Johnson | 5.08 | 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 | ||||||
| Merck & Co. Inc. | 5.37 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 2.53 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 5.03 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 6.03 | 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 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Receivables turnover
= (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
÷ Trade accounts receivable, net of allowance for doubtful accounts
= (14,653 + 13,715 + 17,763 + 17,702)
÷ 12,078 = 5.29
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in revenues, trade accounts receivable, and receivables turnover over the observed periods.
- Revenues
- Revenues exhibited an overall fluctuating pattern with distinct peaks and troughs. Initially, there was a marked increase from approximately 14.5 billion to nearly 24 billion within the first three quarters, followed by a slight decline towards the end of the year. The following quarters showed growth reaching nearly 28 billion before a notable decline occurred in subsequent periods, with revenues dipping to around 13 billion–18 billion range in the most recent quarters. This volatility indicates periodic shifts in sales performance or market conditions impacting revenue generation.
- Trade Accounts Receivable, Net of Allowance for Doubtful Accounts
- The trade accounts receivable balance generally trended upwards during the initial periods, increasing from close to 9.9 billion to above 16 billion by mid-2022. However, from late 2022 onwards, there was a substantial reduction, with receivables decreasing to levels around 10–11 billion, and then again rising to approximately 14 billion by mid-2024 before stabilizing near 12 billion in the latest periods. This pattern suggests variations in credit sales management or collection effectiveness, potentially linked to changes in sales volumes or credit policies over time.
- Receivables Turnover
- Receivables turnover ratios displayed a somewhat inconsistent trend. Initially, turnovers improved from 4.7 to a peak in excess of 7.0 during 2021, suggesting faster collection of receivables relative to sales. This was followed by a decline towards the end of 2021 and early 2022, then a resurgence to a high of over 9.0 in late 2022, indicating rapid collections. Subsequent periods saw a gradual decrease to around 4.2 in mid-2024 before a moderate recovery to approximately 5.3 in the latest quarters. These fluctuations imply varying efficiency in receivables management, potentially influenced by changes in credit terms, customer payment behavior, or revenue fluctuations.
In summary, the data reflects a dynamic operating environment with notable variability in revenue performance and receivables management efficiency. The interplay between revenues and receivables figures suggests that changes in sales volumes and credit policies have significantly affected cash conversion cycles and overall financial health during the periods analyzed.
Payables Turnover
Pfizer Inc., payables turnover calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of sales | 3,778) | 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) | ||||||
| Trade accounts payable | 5,166) | 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) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 3.44 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 4.12 | 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 | ||||||
| Bristol-Myers Squibb Co. | 2.61 | 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 | ||||||
| Danaher Corp. | 5.62 | 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 | ||||||
| Eli Lilly & Co. | 2.27 | 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 | ||||||
| Gilead Sciences Inc. | 10.65 | 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 | ||||||
| Johnson & Johnson | 3.07 | 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 | ||||||
| Merck & Co. Inc. | 3.82 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 2.83 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 8.53 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 3.59 | 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 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Payables turnover
= (Cost of salesQ2 2025
+ Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024)
÷ Trade accounts payable
= (3,778 + 2,845 + 5,909 + 5,263)
÷ 5,166 = 3.44
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales shows notable fluctuations over the periods analyzed. Initially, there was a sharp increase from approximately 4,157 million USD in early April 2021 to a peak close to 9,932 million USD by October 2021. Following this peak, the cost oscillated, decreasing to around 6,063 million USD in October 2022 and then rising again to roughly 9,649 million USD by December 2022. Beyond 2022, the data demonstrates considerable volatility with cost values swinging between lows near 2,845 million USD in March 2025 and highs above 7,500 million USD in late 2023. The pattern suggests variability in production or procurement costs, possibly influenced by changes in operational scale or market conditions.
- Trade Accounts Payable
- Trade accounts payable generally trended upward from early 2021 through late 2022, climbing from about 4,064 million USD to a peak exceeding 6,800 million USD. Subsequently, it experienced moderate declines and fluctuations in 2023 and 2024, with values mostly stabilizing between 5,000 and 6,000 million USD toward mid-2025. This indicates a growing level of outstanding payables through 2022, followed by a somewhat more controlled or managed payable position in later periods.
- Payables Turnover Ratio
- The payables turnover ratio, which reflects how quickly the company pays off its suppliers, revealed an increasing trend from 2.68 in early 2021 up to a high of 6.66 by April 2022, indicating a significant acceleration in payment speed during this timeframe. After the peak, the ratio declined and exhibited volatility, moving between approximately 3.17 and 5.53 in the subsequent quarters. Toward the latest periods, the ratio settled around the mid-3 range, suggesting a moderation in payment speed compared to the earlier peak. This trend may imply an initial effort to reduce payables promptly followed by a return to a more balanced payment cycle.
- Summary Insights
- The interaction between rising cost of sales and trade payables suggests periods of increased operational activity and potentially higher procurement volumes particularly in 2021 and 2022. The elevated payables turnover ratio during the same period indicates a focus on efficiently managing supplier payments. The volatility observed in cost of sales after 2022, combined with fluctuating payables and turnover ratios, may indicate varying supply chain conditions or altered payment policies. Overall, the data reflects dynamic management of costs and payables, pointing to adaptive strategies in response to external and internal factors over the quarters reviewed.
Working Capital Turnover
Pfizer Inc., working capital turnover calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 43,703) | 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) | ||||||
| Less: Current liabilities | 37,726) | 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) | ||||||
| Working capital | 5,977) | 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) | ||||||
| Revenues | 14,653) | 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) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | 10.68 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 130.12 | — | — | ||||||
| Amgen Inc. | 5.35 | 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 | ||||||
| Bristol-Myers Squibb Co. | 8.09 | 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 | ||||||
| Danaher Corp. | 5.71 | 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 | ||||||
| Eli Lilly & Co. | 4.92 | 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 | ||||||
| Gilead Sciences Inc. | 8.14 | 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 | ||||||
| Johnson & Johnson | 284.99 | 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 | ||||||
| Merck & Co. Inc. | 5.77 | 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 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.08 | 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 | ||||||
| Thermo Fisher Scientific Inc. | 3.64 | 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 | ||||||
| Vertex Pharmaceuticals Inc. | 1.82 | 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 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Working capital turnover
= (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
÷ Working capital
= (14,653 + 13,715 + 17,763 + 17,702)
÷ 5,977 = 10.68
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations over the observed periods.
- Working Capital
- The working capital values exhibit considerable variability throughout the time frame. Initial quarters show a general upward trend from 12,881 million USD to a peak of 26,089 million USD by October 2022. However, a significant decline is observed by December 2022, dropping to 9,121 million USD, followed by a remarkable peak at 42,876 million USD in October 2023. Subsequently, the working capital fluctuates markedly, even turning negative in December 2023 (-4,461 million USD) and July 2024 (-5,994 million USD). The values then gradually recover and stabilize around mid-range positive figures towards mid-2025.
- Revenues
- Revenues display a cyclical pattern, beginning at 14,516 million USD and reaching a high of 27,742 million USD in July 2022. This peak is followed by a notable decrease, falling to approximately 13,007 million USD in July 2023. Revenues then experience moderate fluctuations, with a gradual recovery visible towards the final quarters, ending near 14,653 million USD in June 2025. The overall pattern indicates periods of sharp increases followed by declines, suggesting possible seasonality or external market impact factors influencing revenue streams.
- Working Capital Turnover
- The working capital turnover ratio, which measures the efficiency of working capital use in generating revenues, shows significant volatility. The ratio initially trends upward from 3.6 to 6.1 by April 2022, indicating improved efficiency. Following this, the ratio declines with some fluctuations, hitting a very high peak of 29.17 in April 2023, correlating with the extremely low or negative working capital at that time. After this peak, the ratio remains inconsistent, with instances of extreme values such as 5,036 and 5036 in some periods, likely influenced by the erratic working capital figures. Overall, the variability suggests challenges in maintaining consistent operational efficiency in relation to working capital investment.
In summary, the data indicates substantial volatility in working capital, which heavily influences the working capital turnover ratio. Revenues have demonstrated periodic fluctuations, with peaks followed by declines that may reflect seasonal effects or external influences on demand. The inconsistency in working capital and its turnover ratio points to potential management challenges in balancing liquidity and operational efficiency across the observed periods.
Average Inventory Processing Period
Pfizer Inc., average inventory processing period calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Inventory turnover | 1.52 | 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 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 239 | 229 | 222 | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | 107 | 131 | 203 | 284 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 107 | 98 | 90 | 89 | 75 | 75 | 73 | 77 | 85 | 81 | 75 | 66 | 73 | 74 | 65 | 63 | 67 | 68 | ||||||
| Amgen Inc. | 194 | 195 | 199 | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | 231 | 239 | 239 | 239 | ||||||
| Bristol-Myers Squibb Co. | 70 | 69 | 67 | 102 | 98 | 99 | 91 | 84 | 83 | 93 | 84 | 76 | 79 | 80 | 77 | 75 | 73 | 65 | ||||||
| Danaher Corp. | 101 | 96 | 88 | 101 | 102 | 98 | 96 | 104 | 102 | 104 | 91 | 96 | 98 | 94 | 88 | 90 | 85 | 84 | ||||||
| Eli Lilly & Co. | 435 | 379 | 329 | 349 | 316 | 312 | 298 | 261 | 267 | 268 | 237 | 196 | 204 | 189 | 194 | 204 | 203 | 217 | ||||||
| Gilead Sciences Inc. | 108 | 103 | 100 | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | 89 | 114 | 122 | 131 | ||||||
| Johnson & Johnson | 168 | 163 | 165 | 169 | 166 | 158 | 154 | 149 | 164 | 155 | 147 | 136 | 136 | 132 | 127 | 128 | 125 | 128 | ||||||
| Merck & Co. Inc. | 162 | 150 | 147 | 149 | 153 | 151 | 144 | 139 | 137 | 134 | 124 | 118 | 119 | 133 | 159 | 134 | 131 | 152 | ||||||
| Regeneron Pharmaceuticals Inc. | 570 | 582 | 572 | 573 | 562 | 553 | 519 | 508 | 532 | 549 | 562 | 440 | 379 | 287 | 292 | 415 | 445 | 653 | ||||||
| Thermo Fisher Scientific Inc. | 80 | 76 | 72 | 79 | 76 | 74 | 72 | 76 | 79 | 79 | 79 | 85 | 91 | 94 | 94 | 94 | 91 | 91 | ||||||
| Vertex Pharmaceuticals Inc. | 345 | 320 | 287 | 267 | 238 | 222 | 214 | 213 | 192 | 177 | 156 | 136 | 135 | 129 | 143 | 142 | 145 | 142 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.52 = 239
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibited a rising trend starting from 1.28 in early April 2021, reaching a peak of approximately 3.82 by the end of December 2022. This increase indicates a progressively efficient utilization of inventory, with faster sales or movement of stock over this period. However, from the beginning of 2023 onward, the ratio declined steadily, dropping to 1.52 by the middle of 2025. This decline suggests a slowdown in inventory turnover, potentially pointing to slower sales or increased levels of inventory relative to sales.
- Average Inventory Processing Period
- The average inventory processing period decreased significantly from 284 days in April 2021 to a low of 95 days by the end of December 2022. This downward movement complements the increased inventory turnover observed previously, indicating better inventory management and quicker conversion of inventory to sales during this timeframe. From 2023 onward, the processing period extended gradually, rising to 239 days by June 2025. This increase signifies a longer duration to process inventory, aligning with the reduced inventory turnover ratio and possibly reflecting slower inventory movement or accumulation of stock.
- Overall Insights
- The data reveals a clear pattern of improving inventory efficiency through the end of 2022, followed by a reversal beginning in 2023, where efficiency metrics declined. The initial phase suggests effective inventory management and strong sales dynamics. The latter phase could imply emerging challenges in inventory control or sales performance, necessitating further investigation into operational or market factors influencing these trends.
Average Receivable Collection Period
Pfizer Inc., average receivable collection period calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Receivables turnover | 5.29 | 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 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 69 | 69 | 66 | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 79 | 79 | 71 | 75 | 78 | 80 | 75 | 76 | 75 | 74 | 71 | 68 | 72 | 69 | 65 | 61 | 67 | 70 | ||||||
| Amgen Inc. | 95 | 91 | 77 | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | 74 | 71 | 68 | 67 | ||||||
| Danaher Corp. | 54 | 54 | 54 | 54 | 51 | 52 | 60 | 59 | 55 | 53 | 57 | 51 | 54 | 53 | 57 | 55 | 56 | 58 | ||||||
| Eli Lilly & Co. | 97 | 90 | 89 | 92 | 103 | 80 | 97 | 93 | 93 | 99 | 88 | 84 | 80 | 79 | 86 | 78 | 80 | 80 | ||||||
| Gilead Sciences Inc. | 61 | 56 | 56 | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | ||||||
| Johnson & Johnson | 72 | 65 | 61 | 67 | 67 | 64 | 64 | 62 | 68 | 65 | 62 | 60 | 62 | 60 | 59 | 60 | 61 | 65 | ||||||
| Merck & Co. Inc. | 68 | 62 | 58 | 66 | 68 | 68 | 63 | 64 | 69 | 66 | 58 | 59 | 62 | 66 | 69 | 66 | 61 | 65 | ||||||
| Regeneron Pharmaceuticals Inc. | 144 | 144 | 160 | 161 | 155 | 146 | 158 | 156 | 148 | 151 | 160 | 148 | 132 | 107 | 137 | 147 | 206 | 166 | ||||||
| Thermo Fisher Scientific Inc. | 73 | 72 | 70 | 71 | 68 | 68 | 70 | 70 | 67 | 66 | 66 | 63 | 66 | 70 | 74 | 52 | 52 | 56 | ||||||
| Vertex Pharmaceuticals Inc. | 61 | 59 | 53 | 60 | 58 | 64 | 58 | 58 | 60 | 61 | 59 | 58 | 58 | 59 | 55 | 56 | 51 | 56 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.29 = 69
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits notable fluctuations across the observed periods. Initially, it increased from 4.7 to a peak of 7.08 by the end of 2021, indicating more efficient collection of receivables. However, in 2022, the ratio declined to 6.21 by October before sharply rising to 9.16 in December, suggesting a significant improvement in turnover rate at year-end. Moving into 2023, the turnover ratio decreased overall, with values stabilizing around the mid-5 range towards the last quarter. The trend in 2024 reveals a gradual decline from just above 5 down to 4.18 by September, followed by a rebound above 5 towards the end of 2024 and into mid-2025. This pattern implies variability in credit management efficiency, with periods of both tightening and loosening in receivable collection practices.
- Average Receivable Collection Period
- The average collection period inversely mirrors the receivables turnover ratio, starting at 78 days in early 2021 and gradually decreasing to 52 days by end of that year, reflecting faster collection of accounts receivable. During 2022, the collection period generally remained low, reaching a minimum of 40 days in December, demonstrating improved cash conversion. However, the collection period increased through 2023, reaching 69 days by year-end, indicating slower receivables collection. In 2024, the trend continued upward, peaking at 87 days in September, the highest across the timespan, before improving to 66-69 days in early 2025. This increase signifies periods of extended credit terms or potential delays in payments received.
- Overall Trend and Insights
- Analysis of both metrics indicates a general improvement in receivable management efficiency in 2021 and late 2022, followed by a deterioration through 2023 and into 2024. The sharp fluctuations may be attributed to changing credit policies, customer payment behaviors, or market conditions impacting collection cycles. The recent upward spike in the collection period during 2024 suggests a need for increased attention to credit risk management and potential adjustments to collection strategies to maintain liquidity and reduce credit risk exposure.
Operating Cycle
Pfizer Inc., operating cycle calculation (quarterly data)
No. days
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 239 | 229 | 222 | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | 107 | 131 | 203 | 284 | ||||||
| Average receivable collection period | 69 | 69 | 66 | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 308 | 298 | 288 | 306 | 252 | 242 | 218 | 196 | 206 | 167 | 135 | 160 | 155 | 151 | 159 | 194 | 273 | 362 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 186 | 177 | 161 | 164 | 153 | 155 | 148 | 153 | 160 | 155 | 146 | 134 | 145 | 143 | 130 | 124 | 134 | 138 | ||||||
| Amgen Inc. | 289 | 286 | 276 | 295 | 343 | 409 | 510 | 347 | 349 | 363 | 363 | 351 | 339 | 323 | 305 | 310 | 307 | 306 | ||||||
| Danaher Corp. | 155 | 150 | 142 | 155 | 153 | 150 | 156 | 163 | 157 | 157 | 148 | 147 | 152 | 147 | 145 | 145 | 141 | 142 | ||||||
| Eli Lilly & Co. | 532 | 469 | 418 | 441 | 419 | 392 | 395 | 354 | 360 | 367 | 325 | 280 | 284 | 268 | 280 | 282 | 283 | 297 | ||||||
| Gilead Sciences Inc. | 169 | 159 | 156 | 160 | 172 | 164 | 163 | 169 | 163 | 159 | 162 | 137 | 136 | 132 | 150 | 175 | 180 | 188 | ||||||
| Johnson & Johnson | 240 | 228 | 226 | 236 | 233 | 222 | 218 | 211 | 232 | 220 | 209 | 196 | 198 | 192 | 186 | 188 | 186 | 193 | ||||||
| Merck & Co. Inc. | 230 | 212 | 205 | 215 | 221 | 219 | 207 | 203 | 206 | 200 | 182 | 177 | 181 | 199 | 228 | 200 | 192 | 217 | ||||||
| Regeneron Pharmaceuticals Inc. | 714 | 726 | 732 | 734 | 717 | 699 | 677 | 664 | 680 | 700 | 722 | 588 | 511 | 394 | 429 | 562 | 651 | 819 | ||||||
| Thermo Fisher Scientific Inc. | 153 | 148 | 142 | 150 | 144 | 142 | 142 | 146 | 146 | 145 | 145 | 148 | 157 | 164 | 168 | 146 | 143 | 147 | ||||||
| Vertex Pharmaceuticals Inc. | 406 | 379 | 340 | 327 | 296 | 286 | 272 | 271 | 252 | 238 | 215 | 194 | 193 | 188 | 198 | 198 | 196 | 198 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 239 + 69 = 308
2 Click competitor name to see calculations.
The analysis of the company's quarterly financial data reveals several notable trends in its operational efficiency metrics over the observed periods.
- Average Inventory Processing Period
- This metric shows a clear decreasing trend from 284 days in April 2021 to a low of 95 days in December 2022, indicating improved inventory turnover efficiency during this period. However, beginning in April 2023, the inventory processing period started to increase again, rising steadily to reach 239 days by June 2025. This reversal suggests a slowdown in inventory management effectiveness or an accumulation of inventory over time in the latter periods.
- Average Receivable Collection Period
- The receivable collection period demonstrates a significant reduction from 78 days in April 2021 to 40 days by December 2022, reflecting enhanced credit and collection policies or faster payments by customers. Post-December 2022, the collection period trends upward, peaking at 87 days in September 2024, before moderately declining and stabilizing around 69 days by June 2025. This pattern indicates some deterioration in the efficiency of receivables collection after the initial improvement phase, though not returning to the high levels observed at the start of the series.
- Operating Cycle
- The operating cycle, which combines inventory processing and receivables collection periods, follows a similar trajectory. It decreases markedly from 362 days in April 2021 to 135 days by December 2022, indicating an overall improvement in the operational turnover and cash conversion processes. Subsequently, the operating cycle increases again, reaching 308 days by June 2025. This reflects a general slowing in the company's cash-to-cash cycle in more recent periods, driven by the elongation of both inventory and receivables periods.
In summary, the data indicates the company initially improved its operational efficiency significantly through 2022. However, from 2023 onwards, the metrics suggest a decline in inventory and receivables management efficiency, leading to a longer operating cycle. This trend may point to challenges in inventory management or credit policies that could affect working capital and liquidity if not addressed.
Average Payables Payment Period
Pfizer Inc., average payables payment period calculation (quarterly data)
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Payables turnover | 3.44 | 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 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 106 | 110 | 115 | 99 | 79 | 87 | 98 | 72 | 93 | 76 | 72 | 66 | 59 | 55 | 66 | 71 | 98 | 136 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 89 | 70 | 54 | 61 | 73 | 60 | 69 | 70 | 64 | 73 | 90 | 69 | 72 | 78 | 77 | 67 | 74 | 83 | ||||||
| Bristol-Myers Squibb Co. | 140 | 104 | 94 | 106 | 120 | 117 | 111 | 97 | 108 | 114 | 109 | 96 | 107 | 112 | 108 | 94 | 123 | 99 | ||||||
| Danaher Corp. | 65 | 66 | 66 | 60 | 63 | 62 | 65 | 65 | 63 | 64 | 67 | 65 | 73 | 72 | 82 | 70 | 66 | 69 | ||||||
| Eli Lilly & Co. | 161 | 140 | 140 | 135 | 142 | 127 | 134 | 130 | 138 | 119 | 106 | 86 | 87 | 70 | 83 | 82 | 85 | 97 | ||||||
| Gilead Sciences Inc. | 34 | 43 | 49 | 49 | 29 | 34 | 31 | 37 | 40 | 41 | 58 | 33 | 31 | 32 | 39 | 40 | 42 | 42 | ||||||
| Johnson & Johnson | 119 | 123 | 137 | 120 | 121 | 113 | 132 | 111 | 133 | 120 | 137 | 118 | 116 | 112 | 135 | 110 | 108 | 109 | ||||||
| Merck & Co. Inc. | 95 | 92 | 98 | 86 | 83 | 81 | 89 | 80 | 80 | 84 | 89 | 71 | 75 | 86 | 123 | 80 | 93 | 96 | ||||||
| Regeneron Pharmaceuticals Inc. | 129 | 129 | 146 | 94 | 110 | 137 | 122 | 106 | 116 | 136 | 138 | 98 | 91 | 68 | 84 | 86 | 107 | 164 | ||||||
| Thermo Fisher Scientific Inc. | 43 | 44 | 45 | 38 | 37 | 37 | 41 | 35 | 34 | 39 | 48 | 37 | 41 | 46 | 53 | 44 | 41 | 45 | ||||||
| Vertex Pharmaceuticals Inc. | 102 | 105 | 98 | 98 | 85 | 96 | 106 | 117 | 115 | 107 | 103 | 44 | 73 | 66 | 79 | 54 | 57 | 61 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.44 = 106
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited a general upward trend from April 2021 through April 2022, increasing from 2.68 to a peak of 6.66. This indicates an acceleration in the frequency of payments made to suppliers during this period. Subsequently, from mid-2022 onward, the ratio experienced fluctuations with a declining tendency overall. By June 2025, the ratio had decreased to 3.44, reflecting a slowing pace in settling accounts payable compared to the earlier peak period.
- Average Payables Payment Period (Days)
- The average payables payment period correspondingly demonstrated an inverse pattern relative to the payables turnover ratio. Starting at 136 days in April 2021, it steadily decreased to a low of 55 days by April 2022, signifying a faster payment cycle. Following this, there was an observable increase and greater volatility in payment days, reaching up to 115 days in March 2025 before slightly decreasing to 106 days by June 2025. This suggests a lengthening in the credit period or delayed payments during the latter stages under review.
- Summary of Trends
- The financial data reveals a shift from an initially aggressive payment strategy, characterized by high turnover and shorter payment periods, towards a more conservative or extended payment approach in the recent quarters. The fluctuations indicate possible changes in working capital management, supplier negotiation terms, or cash flow considerations. The inverse relationship between turnover and payment period remains consistent throughout the timeline, as is typical given their accounting linkage.
Cash Conversion Cycle
Pfizer Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jun 29, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 239 | 229 | 222 | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | 107 | 131 | 203 | 284 | ||||||
| Average receivable collection period | 69 | 69 | 66 | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | ||||||
| Average payables payment period | 106 | 110 | 115 | 99 | 79 | 87 | 98 | 72 | 93 | 76 | 72 | 66 | 59 | 55 | 66 | 71 | 98 | 136 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Cash conversion cycle1 | 202 | 188 | 173 | 207 | 173 | 155 | 120 | 124 | 113 | 91 | 63 | 94 | 96 | 96 | 93 | 123 | 175 | 226 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 200 | 216 | 222 | 234 | 270 | 349 | 441 | 277 | 285 | 290 | 273 | 282 | 267 | 245 | 228 | 243 | 233 | 223 | ||||||
| Danaher Corp. | 90 | 84 | 76 | 95 | 90 | 88 | 91 | 98 | 94 | 93 | 81 | 82 | 79 | 75 | 63 | 75 | 75 | 73 | ||||||
| Eli Lilly & Co. | 371 | 329 | 278 | 306 | 277 | 265 | 261 | 224 | 222 | 248 | 219 | 194 | 197 | 198 | 197 | 200 | 198 | 200 | ||||||
| Gilead Sciences Inc. | 135 | 116 | 107 | 111 | 143 | 130 | 132 | 132 | 123 | 118 | 104 | 104 | 105 | 100 | 111 | 135 | 138 | 146 | ||||||
| Johnson & Johnson | 121 | 105 | 89 | 116 | 112 | 109 | 86 | 100 | 99 | 100 | 72 | 78 | 82 | 80 | 51 | 78 | 78 | 84 | ||||||
| Merck & Co. Inc. | 135 | 120 | 107 | 129 | 138 | 138 | 118 | 123 | 126 | 116 | 93 | 106 | 106 | 113 | 105 | 120 | 99 | 121 | ||||||
| Regeneron Pharmaceuticals Inc. | 585 | 597 | 586 | 640 | 607 | 562 | 555 | 558 | 564 | 564 | 584 | 490 | 420 | 326 | 345 | 476 | 544 | 655 | ||||||
| Thermo Fisher Scientific Inc. | 110 | 104 | 97 | 112 | 107 | 105 | 101 | 111 | 112 | 106 | 97 | 111 | 116 | 118 | 115 | 102 | 102 | 102 | ||||||
| Vertex Pharmaceuticals Inc. | 304 | 274 | 242 | 229 | 211 | 190 | 166 | 154 | 137 | 131 | 112 | 150 | 120 | 122 | 119 | 144 | 139 | 137 | ||||||
Based on: 10-Q (reporting date: 2025-06-29), 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).
1 Q2 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 239 + 69 – 106 = 202
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a general decreasing trend from April 2021 to December 2022, dropping from 284 days to 95 days, indicating improved inventory turnover and operational efficiency during this time. However, starting in early 2023, the period gradually increased again, reaching 239 days by June 2025, suggesting a slowdown in inventory turnover or potential challenges in managing inventory levels in recent quarters.
- Average Receivable Collection Period
- The average receivable collection period decreased from 78 days in April 2021 to a low of 40 days in December 2022, reflecting more effective credit and collection practices. From 2023 onward, this period generally increased, nearing 69 days by mid-2025, implying that receivables are taking longer to collect, which could impact short-term liquidity.
- Average Payables Payment Period
- The payables payment period experienced a notable decline from 136 days in April 2021 to 55 days by April 2022, indicating faster payment to suppliers initially. However, from mid-2022 through mid-2025, this period generally rose with some fluctuations, peaking at 115 days in June 2025. This extended payment period could reflect efforts to optimize cash outflows or changes in supplier terms.
- Cash Conversion Cycle
- The cash conversion cycle showed a significant improvement from 226 days in April 2021 down to 63 days by December 2022, suggesting enhanced efficiency in managing inventory, receivables, and payables collectively. After December 2022, the cash conversion cycle trended upward, reaching 202 days by June 2025. This reversal implies a decrease in working capital efficiency, possibly due to slower inventory turnover, longer receivable collection, and extended payment periods.