2021 Cash Flow Analysis for Pfizer Inc PFE

Pfizer Inc. is a multinational pharmaceutical corporation that develops and manufactures healthcare products, including medicines and vaccines. The company is headquartered in New York City and was founded in 1849. Pfizer is renowned for its contributions to healthcare, including the development of the COVID-19 vaccine, as well as its extensive portfolio of prescription medicines and consumer health products.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Pfizer Inc. in 2021. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. The cash increased during the year, indicating that the cash flow from operating activities was substantial enough to cover the cash used in investing and financing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating significant investments or asset purchases.

The cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Pfizer Inc.'s cash flow, we have created a real-time counter that simulates the company's cash flow for 2021. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2021. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2021, Pfizer Inc. generated $32,580 million in cash from operating activities, spent $22,546 million on investing activities, and used $9,816 million for financing activities. As a result, the company's cash balance increased by $159 million during the year.

The company's beginning cash balance was $1,825 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $1,983 million.

The company's capital expenditures for the year were $2,711 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $29,869 million in 2021. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Pfizer Inc.'s cash flow in 2021 highlights the company's strong cash generation from operating activities, which was sufficient to cover its significant investments and financing needs. Despite substantial capital expenditures and negative cash flow from investing activities, Pfizer managed to increase its cash balance by the end of the year. The free cash flow of $29,869 million underscores the company's robust financial position, providing ample resources for strategic investments and shareholder returns.