Pfizer Financial Analysis Essay Example

Pfizer Financial Analysis Essay Pfizer Incorporated (PFE)  was established in 1849 in Brooklyn, New York. Charles Pfizer and Charles Erhardt, two German-American cousins, founded a chemicals business and produced an anti-parasitic- Santorin, which was a great success. Pfizers  business  began to grow with production of citric acid in 1880s. Total sales of Pfizer had reached almost $3 million by 1910. By 1950s, Pfizer had set up business in countries like Belgium, Canada, Iran, Panama, Turkey, and United Kingdom. Pfizer is a  pharmaceutical company ranking number one in sales in the world. The company is based in  New York City, with its research headquarters in  Groton,  Connecticut. Its headquarters are in  Midtown Manhattan,  New York City. Pfizer owes a lot of its success to its number-one drug, Lipitor. This drug is used to lower blood cholesterol. Accupril and  Viagra  are two other major products offered by Pfizer. In 2007, total sales of Pfizer amounted to $48. 82 billion while it rounded to be about 50 billion in 2009. Profits made by this firm were worth nearly $10. 562 billion. Total assets held by Pfizer were worth around $115. 46 billion. Total  employee  count of Pfizer was around 86,600. As we take a look at the different ratios of the company. Pfizer Inc. s current ratio deteriorated from 2007 (2. 15) to 2008 (1. 59) but then slightly improved from 2008 to 2009 from 1. 59 to 1. 66. If we compare these numbers to the industry average of health care, overall Pfizer is performing better to the industry and Pfizer current ratio is higher t han the industry in 2007 and 2008. While in 2009 it is closer to the industry average of 1. 72. We will write a custom essay sample on Pfizer Financial Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Pfizer Financial Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Pfizer Financial Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Liquidity ratios are used to evaluate the firm’s ability to pay its short-term debt obligations such as Accounts Payable and accrued taxes and wages. So far from these numbers, we can predict that Pfizer is meeting its ability to pay short term debt to its creditors and suppliers in the market. As current ratio, the Quick Ratio of Pfizer is also higher than the industry average in 2007 and 2008 and is a little below in 2009. The declining curve in the current ratio of Pfizer may be the result of decreasing cash flow from operations. However the cash flow liquidity ratio of Pfizer has declined from 0. 43 in 2007 to 0. 26 in 2008. The declining cash flow from operations is forcing Pfizer to borrow to cover its bills. Overall the liquidity of Pfizer still looks quite sound compared to the industry. Now as we look at the Average collection period and day’s inventory held for Pfizer, we notice a dramatic change the average collection period of Pfizer has increased about 112% from 2007 to 2009 while the days inventory held for Pfizer has also increased about 189% from 2007 to 2009. This raises a caution flag about the increase in these ratios. Pfizer may be too lenient to its creditors. If we compare the increase in these values to the increase in Pfizer’s Sales, the sales only increased by about 3%. As we move to analyze the efficiency of Pfizer, we see that account receivable turnover has decreased about 53% from 4. 92 times in 2007 to about 2. 31 times in 2009. Yet again this major decrease in turnover of accounts receivables shows the inefficiency of Pfizer in collecting cash from creditors. The average collection period has increased dramatically from about 74 days in 2007 to almost 160 days in 2009, rounding to 115% change in the two years. However, apart from the decrease in ratios in the past few years Pfizer is still close to the industry average so we cannot predict that Pfizer is under performing compared to its competitors. Pfizer’s fixed asset turnover and total asset turnover has remained almost the same between 2007 and 2008 but has declined by almost 39. 57% in 2009 (3. 63 to 2. 20). This indicates the increase in fixed assets without a proportional increase in sales. Pfizer is a capital intensive firm and has invested more than 40% in its fixed assets. The increase in fixed assets from 2007 to 2009 is about 71%, clearly indicating that Pfizer is trying to expand more. The decrease in the ratios is rather of the heavy increase in the fixed assets while not sufficient increase in sales. Looking into the leverage of Pfizer, long term debt has increased 600% from 2007 to 2009 but the debt to assets ratios has not increased much in 2008 compared to 2007. The overall change in debt ratio is about 30% increase from 2007 to 2009. This ratio has not increased in the same capacity as the Long term debt has increased. This explains the increase in the asset of Pfizer. As Pfizer is expanding, the overall debt ratio has still not increased a lot compared to the industry average and even though the long term debt has increased extra ordinarily, the ratio of debt to equity ratio is still stable due to the increase in Pfizer’s total fixed assets. Looking at the times interest earned we notice that it has decreased from 19 times to about 9 times from 2007 to 2009 respectively. This decrease is mainly because of the increase in interest charged on the higher borrowings in the two years. The cash flow from operations in this respect is still increasing and the total increase from 2007 to 2009 of the CFO is about 24%. To analyze the profitability break down, Pfizer’s gross profit margin has increase from 76. 79% in 2007 to about 83% in 2009. The operating profit margin increased from 15. % in 2007 to about 23% in 2009. Also the cash flow margin increased from 27% in 2007 to about 33% in 2009 and is almost close to the industry averages. This indicates that Pfizer has the ability to turn sales dollar into profits and has maintained its performance relatively to the industry. Return on assets and return on equity both have decreased from 7% to 4% and from 12. 5% to 10% respectively which is far below from the industry averag e of 10% and 20%. This decrease may be due to the increase in assets of about 85% in the recent years that was discussed earlier. The return on asset could not be realized so soon in the industry of Pfizer. This, no doubt indicates the poor management of the assets but if we look at the figures they are actually increasing level of assets which clearly gives us the image of expansion of Pfizer Inc as they have recently spent over 68 billion dollars on the purchase of Wyeth. After looking into the key financials of the company we see that the total liabilities have increased over 100% which clearly shows the increase on the company’s interest as well. Their overall investment has increased by 170% mainly because of the purchase of Wyeth. The cash flow from operations and operations revenues have increased by 24% and 48% respectively. The liquidity ratios and profitability ratios are stable if we compare it to the industry but still the efficiency ratios are declining. The variance in the figures is mostly between 2008 and 2009. The criminal penalties on Pfizer in 2009 have also damaged the company’s image and have affected its revenues. From the financials, Pfizer still does not look a weak stock if compared to the industry. The idea of buying and holding the stock also depends on the patent expiration in November, 2011 of its top selling drug â€Å"Lipitor†. Pfizer has to invest more in research and development for creating new drugs. Creating new drugs may seem an obvious goal for a drug maker. The New York-based Pfizer, however, has grown into a giant not by discovering new blockbusters but by buying three competitors and their product lines. References: www. finance. yahoo. com http://topics. nytimes. com/top/news/business/companies/pfizer_inc/index. html

What I Learned on My Summer Vacation Lessons in Joy, Leadership, and the Mona Lisa

What I Learned on My Summer Vacation Lessons in Joy, Leadership, and the Mona Lisa Mona Lisa Smile Have you ever tried smiling with just the one side of your mouth? I attempted to do so as part of a leadership workshop last week and was surprised to find out what happened. Before I reveal the punch line, try it yourself: Really smile, with your eyes and everything. Just only use the left side of your mouth. How did it go? OK. Now try smiling with the right side of your mouth. Smile with your mouth and with your eyes. Surprised? If you’re like me and everyone else I know, you found yourself grimacing more than smiling in the second part of this exercise. For me, the seeming impossibility of cracking a right-sided smile was a true eye-opener about where in our brains our emotions show up. Perhaps it’s no surprise that the Mona Lisa is smiling on†¦ guess which side of her face? This phenomenon was just one of the many things I learned about last week when I attended a leadership training with the Wright Institute. The training was a total immersion in a sea of topics including emotional intelligence, creating joy, the formation and workings of the human brain, and getting group projects done with the right leadership (note: the link will bring you to an introductory weekend training; the one I attended was a more in-depth week-long retreat). After the retreat, we were asked to write an essay about the experience in order to cement our learning- something akin to â€Å"What I Did on My Summer Vacation.† I’m sharing my essay here. What I learned will inform the way I live my life and conduct my business for years to come. I gained takeaways not just about Mona Lisa smiling tricks but also about what it means to be a leader, share myself, create joy, and, well, be human. My wish is that you see something for yourself in the following words What I Learned on Summer Training 2013 At Summer I learned how to show up as a leader. It’s not about what I’ve done. It’s not about my skills as they relate to stuff I can do. It’s not about being liked. Leadership requires presence. It requires being willing to risk and to correct myself and others. It requires a strong vision and the ability to communicate it powerfully. It requires being incredibly awake! And it requires caring about the people I’m leading more than I care about getting stuff done. At Summer I learned how to share. It’s not about telling stories or talking about insights. It doesn’t require â€Å"getting it† or having â€Å"done the homework.† It doesn’t require â€Å"knowing† anything. All it takes to share is to be with my feelings, be with the person I’m with, be with my heart and feel into the hearts of the people around me. At Summer I learned how to â€Å"dedicate† to joy. It’s not about being happy all the time. It’s not easy. It’s not a one-shot deal and there’s no magic pill. Joy is not a phenomenon based on life circumstances. Dedicating to joy is a responsibility- a big one to the world and the people around me. Joy is a choice, made moment by moment. Joy often looks like hurt, tears and anger fully felt that open into joy. Joy requires opening- over and over. Joy is accessible to us all. It takes practice. 10,000 hours to mastery, as with so many other things. (See Malcolm Gladwell’s Outliers) At Summer I learned that I matter. Not for the things that I do, not for my talents and not for my creativity or my singing voice. I learned that I don’t have to prove that I matter, and that trying to do so is a losing battle, since in that paradigm as soon as I’ve had to prove it I don’t really matter. I matter because I am. I matter because I have feelings and heart waves that reach out at least 3 feet from my body. Because I am everything that I am. And I learned that these are the things that make other people matter too. At Summer I learned that the lifelong journey of getting to know myself as a leader and group member has only just begun. Getting to know the people around me (including the intricacies of their left and right side facial muscles) is an integral and fascinating part of that journey. I will continue to explore over the next year, and look forward to taking the next steps forward on Summer Training 2014.

Compose a report on management performance characteristics Essay - 1

Compose a report on management performance characteristics - Essay Example The author analyzed personal traits crucial in the workplace such as effective listening and communication skills, as well as, work as a team in order to accomplish organizational goals effectively. The author revealed significant strategies for developing work place effectiveness such as managing emotions and developing emotion competences. Lastly, the conclusion provided a brief summary of the study report. The recent economic recession has led to tremendous disruption in the global business; thus enabling many companies to employ effective management skills. Managers across the globe are nowadays trying to employ effective strategies and leadership styles that can enable them to achieve successful business performance. The research studies have made varied attempts of revealing relevant management practices and effective factors, which have a positive relation with organizational performance. They have made an attempt of revealing the management theory and the way this theory have been applied in varied companies to create organizational change. Managers exploit unique management performance characteristics in order improve organizational performance; thus enabling the company to achieve a competitive advantage. Thus, the report offer an analysis of effective management performance characteristics one can employ in order to improve organizational performance. The previous research on workplace management performance and practices has attempted to examine the effect of personality traits and work performance aspects. Barrick, Mount and Li (132) examine the core principle of personality trait theory and the purposeful goals it play in an organizational performance. The authors further argue that when the motivational forces are linked with job characteristics, individuals improve work performance. Personality traits plays significant roles in an organizational

Sexual development Essay Example | Topics and Well Written Essays - 500 words

Sexual development - Essay Example Teen pregnancy is associated with the risk of sexually transmitted diseases, low-birth weight children, and in addition also affects the studies and subsequent career of teenagers. Abstinence from sex has been a very popular and widely recommended method with nearly 90% of parents in support of such programs (Teen Pregnancy Statistics; Rector and Johnson). Studies have shown that abstinence from sex has resulted in a lesser rate of school drop-outs and increased graduation rates from college. This has been attributed to increased impulse control and focus exhibited by the teenagers on their future life by acting in a planned manner and controlling their emotions and sexual desires. In addition such teenagers also posses delay of gratification by which they are able to set aside immediate pleasures in order for them to work for the future and earn better rewards. They also develop the ability to resist peer pressure in matters concerning sexual activity and become more focused on thei r academic and personal development. They are also able to exhibit better frustration tolerance and also program their adolescent minds to concentrate on the better opportunities in life rather than arousing sexual fantasies.

Integration Theory And Policy Development In The EU Essay

Integration Theory And Policy Development In The EU - Essay Example The EU ozone policy grew from scientific research conducted on the ozone layer in the 70’s which showed that industrial pollutants including those produced by certain home appliances and household sprays were having great and far-reaching effects on the ozone layer surrounding the Earth. To minimize potential hazards and set international standards, the EU together with its executive body the European Commission partook in the framing of multilateral environmental agreements. Since the EU was the biggest exporter of CFC’s due to surplus production, its involvement in developing an ozone policy was crucial. However, the EU is dependent on the effectiveness of the EC and the subsequent participation of the member states into agreeing with the policy. In implementing this EU policy, the two grand theories of integration, neo-functionalism, and intergovernmental work in different ways. One of the earliest policies that illustrated the theory of neo-functionalism was the Com mon Agricultural Policy in the 1960s (Lindberg 1963). A neo-functionalistic approach uses the technical and scientific knowledge of ozone depletion data and the substances causing the effect, to allow technocrats in the EC to draw out schemes that curtail or eliminate the use of ozone depletion substances (ODS). Integration using the neo-functionalistic method permits a sharing of scientific knowledge among similar sectors in the various member states, enabling manufacturing and technology companies in those states to implement a common strategy.... Integration also causes a natural spill over of knowledge and activities into other associated sectors (EPSnet). A functional-spill over occurs when certain processes are functionally connected to each other due to the intermeshing of the economy (Lindberg and Scheingold 1970: 117). The common goal of eliminating ODS needs no mandate and thus the populace of the EU is left out. The formation and implementation of an agreement relating to regional issues compels the various states to adopt the common policy (Schmitter 1969). A few public interest and environmental groups may be involved in the process and together a common strategy may be formulated but by and large the institutions of the EU are on their own in the decision making process. The problem that may arise is when a state is slow to implement the policy thus stalling the integration process. On the other hand, an intergovernmental approach would elevate discretionary powers of the EU member states rather than the supranational institutions. Since the states themselves remain the principal arbiters of integration, they possess decision making powers as to whether or not the EU ozone policy should be implemented locally. Here too more powers rest with the national executives of the states and their advisory boards. Their decision to accept or reject the EU ozone policy can override the power of the supranational institutions of the EU such as the European Commission. The consequence is that unequal implementation in the entire EU with some states applying the ozone policy while others rejecting it or delaying its implementation. With the intergovernmental approach the main issue of ozone depletion is never truly addressed by common consensus. Various

The Handmaids Tale by Margaret Atwood :: essays research papers fc

James Fils-Aime The Handmaid’s Tale Fact or Fiction The Handmaid's Tale is a dystopian novel in which Atwood creates a world which seems absurd and near impossible. Women being kept in slavery only to create babies, cult like religious control over the population, and the deportation of an entire race, these things all seem like fiction. However Atwood's novel is closer to fact than fiction; all the events which take place in the story have a base in the real world as well as a historical precedent. Atwood establishes the world of Gilead on historical events as well as the social and political trends which were taking place during her life time in the 1980's. Atwood shows her audience through political and historical reference that Gilead was and is closer than most people realize. Atwood closely scrutinizes Colonial America, back in the 1700's it was a society founded on religion and ran as a theocratic order. Puritans who had just fled Europe for religions freedom settled in the Americas where they could run their society in the way they saw fit. Especially in New England, religious freedom was not allowed, and people were punished by the courts for failing to uphold the common religions requirements. Those who were not of a specific type of Christianity were considered heathens. Men who controlled the society enforced rules on others based on their interpretations of the bible. They believed that "as God's elect, had the duty to direct national affairs according to God's will as revealed in the Bible." (3) Later on puritanical control faded but in the South there was the enslavement and resulting racism toward blacks. Again so called male leaders of society promote injustice and oppression in order to benefit themselves. Atwood also uses her novel to comment briefly on the issues of race, those not of a specific type of Christianity or skin color were sent away to the colonies, or killed. The "children of Ham", which in the bible represent the descendants of the black race, are relocated outside of Gilead. Even the location in which she places Gilead is reminiscent of early American for Boston, Massachusetts was a puritan center. The world of Gilead which Atwood is a society controlled by power hungry men who use religion as a means of control. Atwood also references the oppression of Jew's during the holocaust in her novel. Under Hitler's rule 6 million Jews were killed, and many more sent to concentration camps where they were mistreated by their captors.

“A Framework for Understanding Poverty by Ruby K. Payne”

The book entitled â€Å"Framework for Understanding Poverty† is a famous book of a former school teacher Ruby K. Payne. I learnt that Ruby Payne is an expert of poverty. She also talks about her understanding of mentality of middle class and wealth.he book has become a text book for poverty workers, teachers and managers of schools to know about the three categories of poverty; generational (for two or more generations) poverty, situational poverty (because of a sad event like disease, death of earning member of family or divorce).The definitions of three poverty types that Ruby Payne gives make sense. The reason of split behaviors, ethics, individuality of three poverty types is stated in financial aspects, she explains   as clearly visible among poverty stricken and is she also covered this identification among wealthy. This approach, that it is not money alone but a lot of other factors have an influence over people, is quite holistic.The book on Poverty written by Ruby P ayne advises that every one in education field from teachers to administrators at all levels of education ‘must read’ the Payne book, which is a boisterous advise. An author of a finance and poverty book can not be so demanding and dogmatic.It could be useful for some having congruent ideas with Ruby Payne but not all will think in her way. It is very useful to understanding the point of view of Dr. Ruby Payne on socio economic reasons and characteristics of poverty.  The good part of her scientific discussion is her suggesting the details of support systems. She suggests focusing on coping techniques, knowing about the various emotional and financial factors that put limitations, and complexities of relationships they hold with similar background social fraternity and then she suggests that the procedural communication and habit of positive talk should be taught to the poverty background students, and how it would help the poor students learn and perform better than their present performance.The Theme of the BookThe book makes us realize the poverty in vivid detail and its entire backdrop of why the cycle of poverty is difficult to break. She emphasizes that poverty is not merely a situation of having less money than they need, but it is struggling in a domain of definite rules, separate feelings, and poor information that prevails over the methods of making   relations and creating a life among poor. The book gives us a useful quiz about survival on its page fifty seventh, which helps understanding contours of poverty.The objective of the book that runs through all chapters of the book is demystifying the myths of poverty with an intension to make us know how to break the poverty cycle.The aim of Ruby Payne appears to be educating all the stakeholders in School education system and education establishments, to make them focus on poor child that they learn in a better way after knowing their social and cultural background and most importantly their emotional mind makeup. This truly helps the teacher and administrators to do a better job in becoming mentors and role models for poor students who emulate them.The process of poverty should be tackled scientifically by training the students certain needed soft skills that poor parents could not teach to their children.The examples given in the book are fantastic such as, for poor, how they learn to look for safety of your clothes at Laundromat, how they engage and entertain their friends and close people by telling stories, and for a middle class person, the knowledge of use of a credit card or library card, earning loyalty from a household employee and creating a veil of seclusion and reserve around for the wealthy.