Pfizer Inc. (NYSE:PFE)

The data reveals several notable trends and changes across the periods analyzed for the various intangible asset categories and goodwill.

Developed technology rights

There is a consistent increase over the five-year period, rising from $73,545 million in 2020 to $99,396 million in 2024. This indicates significant ongoing investments or acquisitions related to developed technology rights.

Brands

The value of brands remains constant at $922 million from 2020 through 2023, with a noticeable increase to $1,277 million in 2024. This suggests revaluation or addition to brand assets in the last year of the period.

Licensing agreements and other (gross carrying amount)

The figures show minor fluctuations with a slight decrease from $2,292 million in 2020 to $2,237 million in 2022, followed by an increase to $2,756 million in 2023, and a small decline to $2,724 million in 2024. This pattern indicates variability in the licensing portfolio or valuation changes.

Finite-lived intangible assets, gross carrying amount

This category follows the upward trend of developed technology rights, increasing steadily from $76,759 million in 2020 to a peak of $103,397 million in 2024. This trend reflects capitalization of intangible assets with finite useful lives.

Accumulated amortization

Accumulated amortization shows a continuous increase in absolute value (i.e., more negative), from -$52,863 million in 2020 to -$67,549 million in 2024, indicating ongoing amortization expense recognition over the years.

Finite-lived intangible assets, net

This net figure varies with a dip from $23,896 million in 2020 to $20,714 million in 2021, then a strong increase to $30,215 million in 2022 and further to $40,116 million in 2023, followed by a decline to $35,848 million in 2024. The initial decrease and later fluctuations likely reflect asset additions and amortization effects.

Brands (alternative line)

The constant value of $827 million from 2020 to 2023 with no data for 2024 suggests a separate classification or a complementary measurement with no recent updates.

In-process research and development (IPR&D)

A significant increase is evident from $3,175 million in 2020 to $11,357 million in 2022 and doubling to $23,193 million in 2023, followed by a decline to $18,893 million in 2024. This indicates substantial investment in research and development projects progressing through the periods with some reductions in the final year possibly due to project completions or impairments.

Licensing agreements and other (alternative line)

This line shows a gradual decrease from $573 million in 2020 to $670 million in 2024, with some variability, implying minor changes or reclassifications within licensing-related assets.

Indefinite-lived intangible assets

A dramatic increase occurs from $4,575 million in 2020 to a peak of $24,784 million in 2023, then a decrease to $19,563 million in 2024. This reflects significant revaluations, impairment, or divestitures affecting indefinite-lived assets such as trademarks or goodwill components.

Identifiable intangible assets

The value grows from $28,471 million in 2020 to $64,900 million in 2023, then declines to $55,411 million in 2024. The trend suggests acquisitions or internal growth of intangible assets with a slight contraction or impairment in the last year.

Goodwill

Goodwill shows a general increase from $49,577 million in 2020 to $68,527 million in 2024, with a notable jump between 2022 and 2023. This increase likely results from acquisitions and reflects the premium paid over identifiable net assets during business combinations.

Identifiable intangible assets and goodwill (combined)

This aggregate measure increases from $78,048 million in 2020 to $132,683 million in 2023, then decreases to $123,938 million in 2024, mirroring the movements observed in both goodwill and identifiable intangible assets.

Overall, the financial data indicates an expansion in intangible assets and goodwill through investment and acquisition activities, with some volatility reflecting amortization, impairments, and asset revaluations. The substantial rises in developed technology rights, IPR&D, and goodwill highlight a focus on innovation and growth, while accumulated amortization demonstrates systematic expense recognition aligned with asset utilization.

The financial data reveals significant trends over the five-year period in both reported and goodwill-adjusted figures for total assets and shareholders’ equity. Observing the reported total assets, there is an overall upward trend from 154,229 million US dollars in 2020 to a peak of 226,501 million in 2023, followed by a moderate decrease to 213,396 million in 2024. This suggests strong asset growth through most of the period with some asset reduction or revaluation in the final year.

The adjusted total assets, which exclude goodwill, also show a consistent upward trend, increasing from 104,652 million in 2020 to 158,718 million in 2023. Similar to reported assets, there is a decline in 2024 to 144,869 million. This pattern indicates that the core tangible assets grew steadily but experienced a pullback in the most recent year, potentially reflecting disposals, write-downs, or other adjustments.

Regarding shareholders’ equity, the reported total equity increased significantly from 63,238 million in 2020 to 95,661 million in 2022, before decreasing to 89,014 million in 2023 and slightly further to 88,203 million in 2024. This indicates growth in book equity for most of the period, followed by a modest decline in the last two years, possibly due to dividend payments, share repurchases, or net income variations.

In contrast, the adjusted shareholders’ equity, which excludes goodwill, exhibits a fluctuating pattern. It rose sharply from 13,661 million in 2020 to 44,286 million in 2022, reflecting a substantial increase of tangible equity. However, it then declined steeply to 21,231 million in 2023 and further to 19,676 million in 2024. This fluctuation suggests significant adjustments or impairments related to goodwill and intangible assets that impacted the adjusted equity figures more acutely than the reported ones.

Assets Trends

Reported total assets steadily increased until 2023, followed by a decrease in 2024.

Adjusted total assets, reflecting tangible assets, display a similar trend but with consistently lower values, indicating the impact of goodwill exclusions.

Shareholders’ Equity Trends

Reported equity rose through 2022 but declined slightly thereafter, indicating positive performance with some recent equity reductions.

Adjusted equity showed strong growth until 2022 but experienced pronounced declines in 2023 and 2024, signaling considerable changes in intangible asset valuation.

Overall, the data highlights robust asset and equity growth up to 2022, with signs of moderation and adjustment in the following years, especially when goodwill is excluded. This pattern may reflect strategic asset management, valuation changes, or external factors impacting intangible asset values and consequently, the adjusted equity base.

Total Asset Turnover

The reported total asset turnover ratio displayed an increasing trend from 0.28 in 2020 to a peak of 0.51 in 2022, followed by a decline to 0.26 in 2023 and a slight recovery to 0.3 in 2024. The adjusted total asset turnover mirrored this pattern but at generally higher levels, rising from 0.41 in 2020 to 0.69 in 2022 before dropping to 0.38 in 2023 and rebounding to 0.44 in 2024. This suggests improved efficiency in asset utilization up to 2022, with a noticeable reduction afterward, although the adjustment for goodwill consistently indicates stronger asset turnover.

Financial Leverage

Reported financial leverage showed a decreasing trend from 2.44 in 2020 to 2.06 in 2022, before increasing again to 2.54 in 2023 and slightly decreasing to 2.42 in 2024. Adjusted financial leverage exhibited a much higher magnitude and more volatility, starting at 7.66 in 2020, declining to 3.29 in 2022, then sharply increasing to 7.48 in 2023 and slightly decreasing to 7.36 in 2024. This indicates that when goodwill is excluded, the company’s leverage is significantly higher and more sensitive, suggesting that goodwill adjustments greatly affect the perception of financial leverage and potential risk exposure.

Return on Equity (ROE)

The reported ROE increased substantially from 15.21% in 2020 to a peak of 32.79% in 2022, but then experienced a steep decline to 2.38% in 2023, followed by a partial recovery to 9.11% in 2024. Adjusted ROE values were consistently higher, reaching above 70% from 2020 to 2022, then decreasing dramatically to 9.98% in 2023 before rising to 40.82% in 2024. The adjusted figures suggest that once goodwill is accounted for, the company’s equity returns were notably robust up to 2022 but have become more volatile since then, reflecting fluctuations in profitability or capital structure.

Return on Assets (ROA)

The reported ROA showed a growth trend from 6.23% in 2020 to 15.91% in 2022, followed by a significant drop to 0.94% in 2023 and a slight improvement to 3.76% in 2024. Adjusted ROA presented a similar pattern but at higher levels, increasing from 9.19% in 2020 to 21.51% in 2022, then falling sharply to 1.34% in 2023 and rising to 5.54% in 2024. This indicates improved asset profitability through 2022, with subsequent declines suggesting challenges in asset utilization or income generation in recent years. Adjusted ROA figures confirm a more favorable but volatile performance when goodwill is excluded.

Over the analyzed period from the end of 2020 through the end of 2024, total assets reported consistently show an upward trajectory during the first four years before experiencing a decrease in the final year. Specifically, reported total assets increased from approximately $154.2 billion in 2020 to a peak of about $226.5 billion in 2023, then declined to roughly $213.4 billion in 2024. In contrast, adjusted total assets, which exclude goodwill effects, followed a similar general trend but at a lower scale, rising from about $104.7 billion in 2020 to around $158.7 billion in 2023, before also retracting to approximately $144.9 billion in 2024.

Regarding asset turnover ratios, which measure the efficiency of asset use in generating revenue, the reported total asset turnover exhibited an increase from 0.28 in 2020 to a high of 0.51 in 2022. However, this was followed by a sharp decline to 0.26 in 2023 before a moderate recovery to 0.30 in 2024. The adjusted total asset turnover ratio showed a similar pattern but maintained consistently higher values throughout the period. It rose from 0.41 in 2020 to 0.69 in 2022, subsequently falling to 0.38 in 2023, and then improving to 0.44 in 2024.

The data suggests that asset growth was accompanied initially by enhanced efficiency in utilization, as evidenced by rising turnover ratios until 2022. The subsequent declines in both reported and adjusted turnover ratios in 2023 imply a reduction in asset utilization efficiency despite the accumulation of total assets. The uptick in turnover ratios observed in 2024 indicates a partial recovery in asset efficiency, although turnover levels remained below the peak values registered in 2022. The simultaneous decrease in total assets and increase in turnover ratios in 2024 may reflect portfolio adjustments or asset disposals aiming to improve operational efficiency.

Total Asset Trends

Reported and adjusted total assets increased steadily until 2023, then declined in 2024.

Asset Turnover Behavior

Both reported and adjusted turnover ratios rose significantly through 2022, fell sharply in 2023, and partially rebounded in 2024.

Operational Efficiency Insights

The trends imply initial growth accompanied by improving asset use efficiency, followed by a phase of diminished efficiency, and then partial recovery.

Goodwill Adjustment Impact

Adjusted figures, which exclude goodwill, consistently indicate higher turnover ratios, suggesting that excluding goodwill assets reflects a more efficient utilization of operational assets.

The analysis reveals several notable trends in the financial position over the five-year period.

Total Assets

Reported total assets show a consistent upward trend from 154,229 million US dollars in 2020 to a peak of 226,501 million US dollars in 2023, followed by a decline to 213,396 million US dollars in 2024. Adjusted total assets, which exclude goodwill, similarly increase from 104,652 million US dollars in 2020 to 158,718 million US dollars in 2023, but then decrease to 144,869 million US dollars in 2024. This indicates overall asset growth until 2023, with a slight contraction in 2024, more pronounced when adjusting for goodwill.

Shareholders’ Equity

Reported shareholders’ equity increased steadily from 63,238 million US dollars in 2020 to a high of 95,661 million US dollars in 2022, before declining to 89,014 million US dollars in 2023 and further to 88,203 million US dollars in 2024. Adjusted equity, however, displays a different pattern, rising sharply from 13,661 million US dollars in 2020 to 44,286 million US dollars in 2022, but then dropping significantly to 21,231 million US dollars in 2023 and continuing down to 19,676 million US dollars in 2024. This divergence suggests that goodwill plays a substantial role in the reported equity values and that the underlying net assets excluding goodwill diminished after 2022.

Financial Leverage

The reported financial leverage ratio declines from 2.44 in 2020 to 2.06 in 2022, indicating a reduction in debt relative to equity during this period, before increasing sharply to 2.54 in 2023 and slightly decreasing to 2.42 in 2024. Conversely, adjusted financial leverage starts at a high level of 7.66 in 2020, falls markedly to 3.29 by 2022, then rises again to 7.48 in 2023 and remains elevated at 7.36 in 2024. The adjusted leverage is significantly higher throughout the period compared to the reported figures, highlighting the impact of goodwill on leverage calculations and signaling an increase in financial risk after 2022 when excluding goodwill.

Overall, the data reveals asset and equity growth through 2022, with a subsequent regression beginning in 2023. Goodwill adjustments demonstrate that intangible assets materially influence the financial position and leverage ratios. The notable increases in adjusted financial leverage after 2022 may warrant further scrutiny concerning the company’s capital structure and risk profile during that time frame.

Reported Total Shareholders’ Equity

The reported total shareholders’ equity shows an overall increasing trend from 2020 to 2022, rising from $63,238 million to $95,661 million. However, this upward momentum reverses in subsequent years, decreasing to $89,014 million in 2023 and slightly further to $88,203 million in 2024.

Adjusted Total Shareholders’ Equity

The adjusted shareholders’ equity, which accounts for goodwill adjustments, demonstrates a substantial increase from $13,661 million in 2020 to $44,286 million in 2022. After this peak, there is a notable contraction to $21,231 million in 2023 and a continued decline to $19,676 million in 2024.

Reported Return on Equity (ROE)

Reported ROE exhibited strong growth from 15.21% in 2020 to a peak of 32.79% in 2022, indicating improved profitability relative to shareholders’ equity during this period. However, there is a sharp decline to 2.38% in 2023, followed by a partial rebound to 9.11% in 2024.

Adjusted Return on Equity (ROE)

Adjusted ROE, measured after goodwill adjustments, shows very high levels throughout the initial three years, increasing consistently from 70.39% in 2020 to 78.52% in 2021 before slightly declining to 70.84% in 2022. This is followed by a substantial drop to 9.98% in 2023 and a significant recovery to 40.82% in 2024.

Summary of Trends and Insights

The data reflect a period of strong growth in equity and profitability from 2020 through 2022, under both reported and adjusted measures. However, from 2023 onwards, both shareholders’ equity and ROE metrics experience noticeable declines, suggesting a reduction in capital base and profitability efficiency. The adjusted figures, which isolate the effect of goodwill, reveal more volatility and higher sensitivity to operational performance changes. The marked decline and partial recovery in 2023 and 2024 indicate the presence of significant events or adjustments impacting financial returns and equity composition during these years.

The financial data demonstrates notable fluctuations over the five-year period in both reported and goodwill adjusted figures. Several patterns emerge from the analysis of total assets and return on assets (ROA) metrics.

Total Assets

The reported total assets increased from 154,229 million US dollars in 2020 to a peak of 226,501 million in 2023, followed by a decline to 213,396 million in 2024. This reflects an overall growth trend in the initial years with a subsequent contraction in the latest year observed.

The adjusted total assets, which exclude goodwill, followed a somewhat similar trajectory but at consistently lower levels. Starting at 104,652 million in 2020, the adjusted assets rose steadily to 158,718 million in 2023 before decreasing to 144,869 million in 2024. The growth in adjusted assets is more gradual and the decline in 2024 is proportionally similar to that seen in reported assets.

Return on Assets (ROA)

The reported ROA exhibited significant volatility over the period. It improved from 6.23% in 2020 to reach a high of 15.91% in 2022, indicating enhanced profitability relative to total reported assets. However, it then sharply decreased to 0.94% in 2023 and partially recovered to 3.76% in 2024. This pattern suggests an extraordinary downturn in profitability in 2023 followed by a moderate rebound.

The adjusted ROA, which considers total assets without goodwill, also showed a rising trend during the first three years, climbing from 9.19% in 2020 to 21.51% in 2022. This peak is higher than the reported ROA peak, suggesting that excluding goodwill reveals stronger operational profitability. Similar to the reported measure, adjusted ROA dropped substantially to 1.34% in 2023, though it improved to 5.54% in 2024. The adjusted ROA values are consistently higher than the reported ROA, reflecting the impact of goodwill on asset valuation and profitability metrics.

In summary, the company experienced asset growth from 2020 through 2023 with a subsequent decline in 2024, mirrored by similar adjusted asset trends. Profitability as measured by ROA increased significantly until 2022 for both reported and adjusted figures, followed by a sharp decline in 2023 and partial recovery in 2024. The adjusted financial data indicate a stronger underlying operational performance when goodwill is excluded, although both sets of metrics highlight a period of reduced profitability after 2022.