The business behind the dividend
| Measure | PFE | Median | Formula |
|---|---|---|---|
| Return on equity | 9.0% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 5.0% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $11.73bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $9.07bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 12.0% | 15.0% | Operating income ÷ revenue |
| Net margin | 12.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.75x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.82x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.16x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 10.42x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.51x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.0% | 9.1% | 2.4% | 32.8% | 28.5% | 14.5% | 25.4% | 17.6% | 29.9% | 12.1% | 14.5% |
| Return on capital employed | 5.0% | 5.4% | 0.7% | 26.5% | 21.1% | 6.9% | 11.3% | 3.6% | 11.4% | 8.8% | 6.9% |
| Operating margin | 12.0% | 12.6% | 2.1% | 37.8% | 33.0% | 16.9% | 27.7% | 8.8% | 23.4% | 15.8% | 15.8% |
| Net margin | 12.4% | 12.6% | 4.2% | 34.2% | 29.8% | 22.0% | 39.2% | 27.3% | 40.6% | 13.7% | 22.0% |
| Debt to equity | 0.75x | 0.69x | 0.72x | 0.37x | 0.49x | 0.62x | 0.59x | 0.59x | 0.52x | 0.60x | 0.59x |
| Current ratio | 1.16x | 1.17x | 0.91x | 1.22x | 1.40x | 1.35x | 0.88x | 1.57x | 1.35x | 1.25x | 1.22x |
| Cash conversion | 1.51x | 1.59x | 4.11x | 0.93x | 1.48x | 1.57x | 0.79x | 1.42x | 0.79x | 2.24x | 1.48x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Pfizer pays out less than 2 of them. The median for that group is 39.3%, against this company’s 107.7%.
Closest on free cash flow
- Iradimed (IRMD) 87.5%
- Baxter International (BAX) 104.8%
- 3M (MMM) 111.9%
- Humana (HUM) 114.7%
Same sector and same denominator, so the figures are comparable. All 44 in health care →