PFIZER : revenue, balance sheet and financial ratios

In 2024, PFIZER achieves revenue of 2.0 Bn€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.2%. Vs 2023: +7%. After deducting consumption (955.3 M€), gross margin stands at 1.1 Bn€, i.e. a rate of 53%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 161.0 M€, representing 7.9% of revenue. Positive scissor effect: EBITDA margin improves by +7.3 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 57.6 M€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 78%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 5%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 118.93. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.6x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 40 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 88 days. Excellent situation: suppliers finance 48 days of the operating cycle (retail model). Inventory turnover is 77 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 93 days of revenue, i.e. 528.2 M€ to permanently finance. Over 2016-2024, WCR increased by +228%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of PFIZER is estimated at 197 051 075 € (range 101 386 270€ - 637 366 110€). With an EBITDA of 161 026 588€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.