Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Pfizer Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 453 1,321 2,744 3,342 371
State and local 32 (135) (20) 34 58
International 1,589 1,142 4,368 2,769 1,516
Current income taxes 2,074 2,328 7,092 6,145 1,945
Federal (1,909) (2,607) (3,271) (3,850) (1,061)
State and local (293) (184) (310) (491) (115)
International 100 (652) (183) 48 (292)
Deferred income taxes (2,102) (3,443) (3,764) (4,293) (1,468)
Provision (benefit) for taxes on income (28) (1,115) 3,328 1,852 477

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Current income taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Pfizer Inc. current income taxes decreased from 2022 to 2023 and from 2023 to 2024.
Deferred income taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Pfizer Inc. deferred income taxes increased from 2022 to 2023 and from 2023 to 2024.
Provision (benefit) for taxes on income Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Pfizer Inc. provision (benefit) for taxes on income decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Effective Income Tax Rate (EITR)

Pfizer Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Taxation of non-U.S. operations -7.90% -21.10% -5.00% -4.30% -9.60%
Transition Tax liability -6.00% 0.00% 0.00% 0.00% 0.00%
Tax settlements and resolution of certain tax positions -2.40% -40.30% -3.00% -0.40% -2.50%
Foreign-Derived Intangible Income deduction -1.20% -33.10% -1.90% -0.60% 0.00%
State & local taxes -2.50% -22.40% 0.00% -0.50% 0.00%
Charitable contributions -1.70% -7.30% -0.50% -0.60% 0.00%
Certain Consumer Healthcare JV initiatives 0.00% 0.00% 0.00% -6.00% 0.00%
U.S. Healthcare Legislation 0.00% 0.00% 0.00% 0.00% 0.10%
U.S. R&D tax credit -1.80% -15.80% -0.60% -0.50% -1.30%
Interest 2.20% 13.50% 0.20% 0.40% 1.10%
All other, net -0.10% 0.10% -0.60% -0.90% -2.40%
Effective tax rate for income from continuing operations -0.40% -105.40% 9.60% 7.60% 6.40%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Effective tax rate for income from continuing operations Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Pfizer Inc. effective tax rate for income from continuing operations decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Components of Deferred Tax Assets and Liabilities

Pfizer Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Prepaid/deferred items 2,988 2,658 1,673 1,889 3,094
Accrued/deferred royalties 1,306 1,655 2,127 777
Deferred revenues 300 471 95
Inventories 992 1,210 672 408 276
Intangible assets 1,435 1,526 1,445 1,542 793
Property, plant and equipment 265 168 112 117 211
Employee benefits 1,002 1,085 1,314 1,594 1,981
Restructurings and other charges 462 537 302 303 291
Legal and product liability reserves 378 430 385 373 382
Research and development 7,635 6,275 4,137 1,656
Net operating loss/tax credit carryforwards 2,028 2,708 2,224 1,431 1,761
State and local tax adjustments 161 119 151 197 171
Investments 73 133 91 70 128
All other 87 62 78 89 101
Gross deferred tax assets 19,112 19,037 14,806 10,446 9,189
Valuation allowances (1,638) (1,738) (1,541) (1,463) (1,586)
Deferred tax assets 17,474 17,299 13,265 8,983 7,603
Prepaid/deferred items (847) (654) (533) (456) (352)
Inventories (702) (1,060) (262) (56) (25)
Intangible assets (9,066) (11,605) (6,288) (4,577) (5,355)
Property, plant and equipment (1,751) (2,039) (1,845) (1,647) (1,219)
Employee benefits (274) (287) (276) (178) (127)
Unremitted earnings (69) (60) (51) (45) (46)
Investments (248) (395) (208) (689) (3,545)
All other (66) (71) (56) (66) (57)
Deferred tax liabilities (13,023) (16,171) (9,519) (7,714) (10,726)
Net deferred tax asset (liability) 4,451 1,128 3,746 1,269 (3,123)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Pfizer Inc. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Pfizer Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Pfizer Inc. net deferred tax asset (liability) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Deferred Tax Assets and Liabilities, Classification

Pfizer Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Noncurrent deferred tax assets (included in Noncurrent deferred tax assets and other noncurrent tax assets) 6,573 1,768 4,769 1,618 940
Noncurrent deferred tax liabilities 2,122 640 1,023 349 4,063

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Noncurrent deferred tax assets (included in Noncurrent deferred tax assets and other noncurrent tax assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Pfizer Inc. noncurrent deferred tax assets (included in Noncurrent deferred tax assets and other noncurrent tax assets) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Pfizer Inc. noncurrent deferred tax liabilities decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Pfizer Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 213,396 226,501 197,205 181,476 154,229
Less: Noncurrent deferred tax assets, net 6,573 1,768 4,769 1,618 940
Total assets (adjusted) 206,823 224,733 192,436 179,858 153,289
Adjustment to Total Liabilities
Total liabilities (as reported) 124,899 137,213 101,288 104,013 90,756
Less: Noncurrent deferred tax liabilities, net 2,122 640 1,023 349 4,063
Total liabilities (adjusted) 122,777 136,573 100,265 103,664 86,693
Adjustment to Total Pfizer Inc. Shareholders’ Equity
Total Pfizer Inc. shareholders’ equity (as reported) 88,203 89,014 95,661 77,201 63,238
Less: Net deferred tax assets (liabilities) 4,451 1,128 3,746 1,269 (3,123)
Total Pfizer Inc. shareholders’ equity (adjusted) 83,752 87,886 91,915 75,932 66,361
Adjustment to Net Income Attributable To Pfizer Inc. Common Shareholders
Net income attributable to Pfizer Inc. common shareholders (as reported) 8,031 2,119 31,372 21,979 9,616
Add: Deferred income tax expense (benefit) (2,102) (3,443) (3,764) (4,293) (1,468)
Net income attributable to Pfizer Inc. common shareholders (adjusted) 5,929 (1,324) 27,608 17,686 8,148

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Pfizer Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Pfizer Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 12.62% 3.56% 31.01% 26.76% 22.53%
Adjusted net profit margin 9.32% -2.22% 27.29% 21.53% 19.09%
Total Asset Turnover
Reported total asset turnover 0.30 0.26 0.51 0.45 0.28
Adjusted total asset turnover 0.31 0.26 0.53 0.46 0.28
Financial Leverage
Reported financial leverage 2.42 2.54 2.06 2.35 2.44
Adjusted financial leverage 2.47 2.56 2.09 2.37 2.31
Return on Equity (ROE)
Reported ROE 9.11% 2.38% 32.79% 28.47% 15.21%
Adjusted ROE 7.08% -1.51% 30.04% 23.29% 12.28%
Return on Assets (ROA)
Reported ROA 3.76% 0.94% 15.91% 12.11% 6.23%
Adjusted ROA 2.87% -0.59% 14.35% 9.83% 5.32%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Pfizer Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Pfizer Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Pfizer Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Pfizer Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Pfizer Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Pfizer Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. common shareholders 8,031 2,119 31,372 21,979 9,616
Revenues 63,627 59,553 101,175 82,145 42,678
Profitability Ratio
Net profit margin1 12.62% 3.56% 31.01% 26.76% 22.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. common shareholders 5,929 (1,324) 27,608 17,686 8,148
Revenues 63,627 59,553 101,175 82,145 42,678
Profitability Ratio
Adjusted net profit margin2 9.32% -2.22% 27.29% 21.53% 19.09%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Revenues
= 100 × 8,031 ÷ 63,627 = 12.62%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Pfizer Inc. common shareholders ÷ Revenues
= 100 × 5,929 ÷ 63,627 = 9.32%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Pfizer Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues 63,627 59,553 101,175 82,145 42,678
Total assets 213,396 226,501 197,205 181,476 154,229
Activity Ratio
Total asset turnover1 0.30 0.26 0.51 0.45 0.28
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 63,627 59,553 101,175 82,145 42,678
Adjusted total assets 206,823 224,733 192,436 179,858 153,289
Activity Ratio
Adjusted total asset turnover2 0.31 0.26 0.53 0.46 0.28

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 63,627 ÷ 213,396 = 0.30

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 63,627 ÷ 206,823 = 0.31

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Pfizer Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 213,396 226,501 197,205 181,476 154,229
Total Pfizer Inc. shareholders’ equity 88,203 89,014 95,661 77,201 63,238
Solvency Ratio
Financial leverage1 2.42 2.54 2.06 2.35 2.44
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 206,823 224,733 192,436 179,858 153,289
Adjusted total Pfizer Inc. shareholders’ equity 83,752 87,886 91,915 75,932 66,361
Solvency Ratio
Adjusted financial leverage2 2.47 2.56 2.09 2.37 2.31

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Total Pfizer Inc. shareholders’ equity
= 213,396 ÷ 88,203 = 2.42

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Pfizer Inc. shareholders’ equity
= 206,823 ÷ 83,752 = 2.47

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Pfizer Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. common shareholders 8,031 2,119 31,372 21,979 9,616
Total Pfizer Inc. shareholders’ equity 88,203 89,014 95,661 77,201 63,238
Profitability Ratio
ROE1 9.11% 2.38% 32.79% 28.47% 15.21%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. common shareholders 5,929 (1,324) 27,608 17,686 8,148
Adjusted total Pfizer Inc. shareholders’ equity 83,752 87,886 91,915 75,932 66,361
Profitability Ratio
Adjusted ROE2 7.08% -1.51% 30.04% 23.29% 12.28%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Total Pfizer Inc. shareholders’ equity
= 100 × 8,031 ÷ 88,203 = 9.11%

2 Adjusted ROE = 100 × Adjusted net income attributable to Pfizer Inc. common shareholders ÷ Adjusted total Pfizer Inc. shareholders’ equity
= 100 × 5,929 ÷ 83,752 = 7.08%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Pfizer Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. common shareholders 8,031 2,119 31,372 21,979 9,616
Total assets 213,396 226,501 197,205 181,476 154,229
Profitability Ratio
ROA1 3.76% 0.94% 15.91% 12.11% 6.23%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Pfizer Inc. common shareholders 5,929 (1,324) 27,608 17,686 8,148
Adjusted total assets 206,823 224,733 192,436 179,858 153,289
Profitability Ratio
Adjusted ROA2 2.87% -0.59% 14.35% 9.83% 5.32%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income attributable to Pfizer Inc. common shareholders ÷ Total assets
= 100 × 8,031 ÷ 213,396 = 3.76%

2 Adjusted ROA = 100 × Adjusted net income attributable to Pfizer Inc. common shareholders ÷ Adjusted total assets
= 100 × 5,929 ÷ 206,823 = 2.87%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Pfizer Inc. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.