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.Pfizer's 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 …show more content…

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%.