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Pfizer (NYSE:PFE) Financial Strength

: 5 (As of Dec. 2023)
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Pfizer has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Pfizer did not have earnings to cover the interest expense. Pfizer's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.24. As of today, Pfizer's Altman Z-Score is 1.67.


Competitive Comparison

For the Drug Manufacturers - General subindustry, Pfizer's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pfizer Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, Pfizer's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pfizer's Financial Strength falls into.



Pfizer Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Pfizer's Interest Expense for the months ended in Dec. 2023 was $-688 Mil. Its Operating Income for the months ended in Dec. 2023 was $-1,971 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $60,499 Mil.

Pfizer's Interest Coverage for the quarter that ended in Dec. 2023 is

Pfizer did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Pfizer's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10346 + 60499) / 56996
=1.24

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Pfizer has a Z-score of 1.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.67 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Pfizer  (NYSE:PFE) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Pfizer has the Financial Strength Rank of 5.


Pfizer Financial Strength Related Terms

Thank you for viewing the detailed overview of Pfizer's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Pfizer (NYSE:PFE) Business Description

Address
66 Hudson Boulevard East, New York, NY, USA, 10001-2192
Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales). While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, and cardiovascular treatment Eliquis. Pfizer sells these products globally, with international sales representing close to 50% of total sales. Within international sales, emerging markets are a major contributor.
Executives
Scott Gottlieb director MOLECULAR INSIGHT PHARMACEUTICALS, 160 SECOND STREET, CAMBRIDGE MA 02142
Christoffel Boshoff officer: Executive Vice President 66 HUDSON BOULEVARD EAST, NEW YORK NY 10001-2192
Jennifer B. Damico officer: SVP & Controller C/O PFIZER INC. CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Payal Sahni officer: Executive Vice President ATTN: PFIZER CORP. SECRETARY, 235 EAST 42ND ST., NEW YORK NY 10017
Carapezzi William R Jr officer: Executive Vice President 600 MOUNTAIN AVENUE, MURRAY HILL NJ 07921
Douglas M Lankler officer: Senior Vice President PFIZER INC. ATTN: CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Mikael Dolsten officer: Senior Vice President 5 GIRALDA FARMS, MADISON NJ 07940
David M Denton officer: Chief Financial Officer & EVP 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
William Pao officer: Executive Vice President C/O CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Michael Mcdermott officer: Executive Vice President C/O PFIZER INC. CORPORATE SECRETARY, 235 EAST 42ND STREET, 235 EAST 42ND STREET NY 10017
Rady A Johnson officer: Executive Vice President PFIZER INC. ATTN CORP. SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Alexander R Mackenzie officer: Executive Vice President C/O PFIZER CORP. SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Sally Susman officer: Senior Vice President 767 FIFTH AVE, EOTIC LAWDER CORP, NEW YORK NY 10153
Angela Hwang officer: Group President 235 EAST 42ND STREET, ATTN: CORPORATE SECRETARY, NEW YORK NY 10017
John D Young officer: Business Unit President C/O CORPORATE SECRETARY, 235 EAST 42ND ST., NEW YORK NY 10017