Kinnari Patel ACG 2021 Section 080 Pfizer Annual Report

Introduction to Pfizer  Hank McKinnel, Chairman and CEO  New York - Home Office  December 31, Fiscal Year Ended  Prescription Medications, Consumer Heathcare Products, Animal Health Products are the different kinds of medical products Pfizer produces.  North America, Europe, and Japan are the three largest markets.

Audit Report  KPMG – LLP Independent Auditors  The independent auditors discuss how they do the best they can to protect the companies financials through various procedures and the cooperation between them and the independent auditors.

Pfizer’s Stock Information  Stock Price $30.31  Low $29.70 and High $39.90 for 12 month period  Dividend per share $.51  October 11, 2004  My opinion on the company stock is to SELL. The market for medicine is high but there are no major fluctuations unless new products are introduced to the market.

Industry and Company Plans TTTThe pharmaceutical industry is a steady industry. The major increase in profit comes about when there are new medications introduced to the market. In the future Pfizer plans to introduce new products such as “Exubera” which is “an inhaled insulin system”. hhh al_2003/review/p2003ar22_23.htm

Income Statement  Multi-step Process  With the introduction of new products the revenues increase steadily per year.

Balance Sheet  The total liabilities are increasing more than the amount of net income, which means the cost of developing new products is more than current profits.

Statement of Cash Flows TTTThe cash flows from operating expenses is more then Net Income for the past two years TTTThe company is making money from investments. Most of the money is from redemption of short-term investments. TTTThe companies primary source of financing is from issuance of long term debt. CCCCash has dramatically decreased in the past two years.

Financial Analysis Liquidity Ratios WWWWorking Capital = $6, CCCCurrent Ratio = 1.26 RRRReceivable Turnover = AAAAverage Days’ Sale Uncollected = 58.8 IIIInventory Turnover = AAAAverage Days’ Inventory on Hand =

Financial Analysis Profitability Ratios  Profit Margin = 8.6 %  Asset Turnover =.55  Return on Assets =.047  Return on Equity =.091

Financial Analysis Market Strength Ratios  Price/ earnings per share =  Dividends yeild =