2022 Cash Flow Analysis for Pfizer Inc PFE

Pfizer Inc. is a multinational pharmaceutical corporation that develops and produces medicines and vaccines for a wide range of medical disciplines. 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 life-saving vaccines and treatments.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used during 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 2022. 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. During the year, Pfizer's cash decreased, indicating that cash was utilized for financing and investing activities. The cash flow from operating activities is the largest source of cash, significantly outweighing the cash used in investing and financing activities.

The cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. Similarly, 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 conclude 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 2022. 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 2022. The counter is intended to give you an understanding of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Pfizer Inc. generated $29,267 million in cash from operating activities, spent $15,783 million on investing activities, and used $14,834 million for financing activities. Consequently, the company's cash balance decreased by $1,515 million during the year.

The company's beginning cash balance was $1,983 million, which typically includes cash and cash equivalents, such as short-term investments easily convertible into cash. The company's ending cash balance was $468 million.

Pfizer's capital expenditures for the year amounted to $3,236 million, representing the cash 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 $26,031 million in 2022. This amount represents the cash available for dividends, stock repurchases, or other investments.

Summary

Pfizer Inc. demonstrated strong cash flow from operating activities in 2022, generating $29,267 million, which significantly contributed to its ability to manage substantial capital expenditures and financing activities. Despite negative cash flows from investing and financing activities, the company maintained a healthy free cash flow of $26,031 million, showcasing its robust operational efficiency and capacity to support strategic investments and shareholder returns.