Question
Financial data for Pfizer Inc. for the years ended December 31, 2023, 2022, and 2021 are provided below. Pfizer Inc. Comparative Income Statements 2023 2022
Financial data for Pfizer Inc. for the years ended December 31, 2023, 2022, and 2021 are provided below.
Pfizer Inc. Comparative Income Statements | 2023 | 2022 | 2021 |
Sales | $650,000,000 | $620,000,000 | $590,000,000 |
Cost of goods sold | $390,000,000 | $372,000,000 | $354,000,000 |
Gross profit | $260,000,000 | $248,000,000 | $236,000,000 |
Operating expenses | $130,000,000 | $124,000,000 | $118,000,000 |
Income from operations | $130,000,000 | $124,000,000 | $118,000,000 |
Interest expense | $13,000,000 | $12,400,000 | $11,800,000 |
Income before taxes | $117,000,000 | $111,600,000 | $106,200,000 |
Income tax expense | $35,100,000 | $33,480,000 | $31,860,000 |
Net income | $81,900,000 | $78,120,000 | $74,340,000 |
Pfizer Inc. Comparative Balance Sheets | 2023 | 2022 | 2021 |
Assets | |||
Current assets | $130,000,000 | $125,000,000 | $120,000,000 |
Long-term investments | $170,000,000 | $160,000,000 | $150,000,000 |
Property and equipment, net | $300,000,000 | $280,000,000 | $260,000,000 |
Total assets | $600,000,000 | $565,000,000 | $530,000,000 |
Liabilities and Equity | |||
Current liabilities | $100,000,000 | $95,000,000 | $90,000,000 |
Long-term debt | $250,000,000 | $230,000,000 | $210,000,000 |
Common stock | $150,000,000 | $150,000,000 | $150,000,000 |
Retained earnings | $100,000,000 | $90,000,000 | $80,000,000 |
Total liabilities and equity | $600,000,000 | $565,000,000 | $530,000,000 |
Requirements:
- Prepare common-size income statements for 2023, 2022, and 2021.
- Prepare common-size balance sheets for 2023, 2022, and 2021.
- Calculate Pfizer’s return on assets (ROA) and return on equity (ROE) for the three years.
- Discuss the trend in Pfizer’s gross profit margin and operating profit margin.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started