Accounting and Financial Analysis on Pfizer Inc.

Abstract

This article targets at analyzing the performance and future trend prediction of Pfizer Inc. under the situation of the COVID-19 pandemic. The impacts brought by this pandemic have led to great economic turmoil and will continuously make an enormous difference to economical growth. As one of the most related industries, the pharmaceutical industry undoubtedly is closely linked with the shifting of the economy. Therefore, Pfizer Inc., one of the most influential biotech corporate, is a perfect choice to analyze the future trend of the pharmaceutical industry as a typical case. Analysis of this paper is based on Pfizer Inc.’s and another three similarly-sized biotech corporates’ consecutive three-year annual reports. After calculating key ratios from four perspectives, which are profitability, solvency, liquidity, and turnover ratios, clear interpretation and rational future interpretation will be present according to the general performance of Pfizer Inc.. Based on horizontal and vertical comparisons of Pfizer, the general future trend is positive. However, decreasing demand for vaccines after the peak of the pandemic, coupled with the diversified and frequently updated medical services provided by other biotech giants and newly-developed businesses intensifies the competition of Pfizer Inc.. Therefore, the performance of Pfizer Inc. probably fluctuates between the situation of pre-pandemic and post-pandemic eras.