Stock Analysis on Net
Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Pfizer Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 226,501 197,205 181,476 154,229 167,489
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 226,501 197,205 181,476 154,229 167,489
Adjustment to Total Debt
Total debt (as reported) 71,888 35,829 38,436 39,836 52,150
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Operating lease liabilities, short-term (included in Other current liabilities) 527 620 449 321 276
Add: Operating lease liabilities, long-term (included in Other noncurrent liabilities) 2,626 2,597 2,510 1,114 1,048
Total debt (adjusted) 75,041 39,046 41,395 41,271 53,474

Based on: 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), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.

Pfizer Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Pfizer Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.26 0.51 0.45 0.27 0.31
Adjusted total asset turnover 0.26 0.51 0.45 0.27 0.31
Debt to Equity2
Reported debt to equity 0.81 0.37 0.50 0.63 0.83
Adjusted debt to equity 0.84 0.41 0.54 0.65 0.85
Return on Assets3 (ROA)
Reported ROA 0.94% 15.91% 12.11% 6.23% 9.72%
Adjusted ROA 0.94% 15.91% 12.11% 6.23% 9.72%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 See details »

Financial 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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Pfizer Inc. adjusted debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Pfizer Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Pfizer Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 58,496 100,330 81,288 41,908 51,750
Total assets 226,501 197,205 181,476 154,229 167,489
Activity Ratio
Total asset turnover1 0.26 0.51 0.45 0.27 0.31
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 58,496 100,330 81,288 41,908 51,750
Adjusted total assets 226,501 197,205 181,476 154,229 167,489
Activity Ratio
Adjusted total asset turnover2 0.26 0.51 0.45 0.27 0.31

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 58,496 ÷ 226,501 = 0.26

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 58,496 ÷ 226,501 = 0.26

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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 71,888 35,829 38,436 39,836 52,150
Total Pfizer Inc. shareholders’ equity 89,014 95,661 77,201 63,238 63,143
Solvency Ratio
Debt to equity1 0.81 0.37 0.50 0.63 0.83
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 75,041 39,046 41,395 41,271 53,474
Total Pfizer Inc. shareholders’ equity 89,014 95,661 77,201 63,238 63,143
Solvency Ratio
Adjusted debt to equity2 0.84 0.41 0.54 0.65 0.85

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Total Pfizer Inc. shareholders’ equity
= 71,888 ÷ 89,014 = 0.81

2 Adjusted debt to equity = Adjusted total debt ÷ Total Pfizer Inc. shareholders’ equity
= 75,041 ÷ 89,014 = 0.84

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Pfizer Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Total assets 226,501 197,205 181,476 154,229 167,489
Profitability Ratio
ROA1 0.94% 15.91% 12.11% 6.23% 9.72%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Pfizer Inc. 2,119 31,372 21,979 9,616 16,273
Adjusted total assets 226,501 197,205 181,476 154,229 167,489
Profitability Ratio
Adjusted ROA2 0.94% 15.91% 12.11% 6.23% 9.72%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to Pfizer Inc. ÷ Total assets
= 100 × 2,119 ÷ 226,501 = 0.94%

2 Adjusted ROA = 100 × Net income attributable to Pfizer Inc. ÷ Adjusted total assets
= 100 × 2,119 ÷ 226,501 = 0.94%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Pfizer Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.