Pfizer Financial Analysis
Pfizer Incorporated (PFE) was established in 1849 in Brooklyn, New York. Charles Pfizer and Charles Erhardt, two German-American cousins, founded a chemicals business and produced an anti-parasitic- Santorin, which was a great success.Pfizer's business began to grow with production of citric acid in 1880s. Total sales of Pfizer had reached almost $3 million by 1910. By 1950s, Pfizer had set up business in countries like Belgium, Canada, Iran, Panama, Turkey, and United Kingdom.
Pfizer is a pharmaceutical company ranking number one in sales in the world. The company is based in New York City, with its research headquarters in Groton, Connecticut. Its headquarters are in Midtown Manhattan, New York City. Pfizer owes a lot of its success to its number-one drug, Lipitor. This drug is used to lower blood cholesterol. Accupril and Viagra are two other major products offered by Pfizer. In 2007, total sales of Pfizer amounted to $48.82 billion while it rounded to be about 50 billion in 2009. Profits made by this firm were worth nearly $10.562 billion. Total assets held by Pfizer were worth around $115.246 billion. Total employee count of Pfizer was around 86,600.
As we take a look at the different ratios of the company. Pfizer Inc.'s current ratio deteriorated from 2007 (2.15) to 2008 (1.59) but then slightly improved from 2008 to 2009 from 1.59 to 1.66. If we compare these numbers to the industry average of health care, overall Pfizer is performing better to the industry and Pfizer current ratio is higher than the industry in 2007 and 2008. While in 2009 it is closer to the industry average of 1.72.Liquidity ratios are used to evaluate the firm’s ability to pay its short-term debt obligations such as Accounts Payable and accrued taxes and wages. So far from these numbers, we can predict that Pfizer is meeting its ability to pay short term debt to its creditors and suppliers in the market. As current ratio, the Quick Ratio of Pfizer is also higher than the industry
Pfizer is a pharmaceutical company ranking number one in sales in the world. The company is based in New York City, with its research headquarters in Groton, Connecticut. Its headquarters are in Midtown Manhattan, New York City. Pfizer owes a lot of its success to its number-one drug, Lipitor. This drug is used to lower blood cholesterol. Accupril and Viagra are two other major products offered by Pfizer. In 2007, total sales of Pfizer amounted to $48.82 billion while it rounded to be about 50 billion in 2009. Profits made by this firm were worth nearly $10.562 billion. Total assets held by Pfizer were worth around $115.246 billion. Total employee count of Pfizer was around 86,600.
As we take a look at the different ratios of the company. Pfizer Inc.'s current ratio deteriorated from 2007 (2.15) to 2008 (1.59) but then slightly improved from 2008 to 2009 from 1.59 to 1.66. If we compare these numbers to the industry average of health care, overall Pfizer is performing better to the industry and Pfizer current ratio is higher than the industry in 2007 and 2008. While in 2009 it is closer to the industry average of 1.72.Liquidity ratios are used to evaluate the firm’s ability to pay its short-term debt obligations such as Accounts Payable and accrued taxes and wages. So far from these numbers, we can predict that Pfizer is meeting its ability to pay short term debt to its creditors and suppliers in the market. As current ratio, the Quick Ratio of Pfizer is also higher than the industry
References: www.finance.yahoo.com http://topics.nytimes.com/top/news/business/companies/pfizer_inc/index.html http://www.stock-analysis-on.net/NYSE/Company/Pfizer-Inc/Ratios/Profitability http://en.wikipedia.org/wiki/Pfizer