U.S. markets closed
  • S&P 500

    3,925.43
    +44.06 (+1.14%)
     
  • Dow 30

    31,961.86
    +424.51 (+1.35%)
     
  • Nasdaq

    13,597.97
    +132.77 (+0.99%)
     
  • Russell 2000

    2,284.38
    +53.07 (+2.38%)
     
  • Crude Oil

    63.45
    +1.78 (+2.89%)
     
  • Gold

    1,804.00
    -1.90 (-0.11%)
     
  • Silver

    28.00
    +0.32 (+1.14%)
     
  • EUR/USD

    1.2173
    +0.0018 (+0.15%)
     
  • 10-Yr Bond

    1.3890
    +0.0270 (+1.98%)
     
  • GBP/USD

    1.4140
    +0.0026 (+0.18%)
     
  • USD/JPY

    105.8440
    +0.6070 (+0.58%)
     
  • BTC-USD

    48,436.57
    +391.20 (+0.81%)
     
  • CMC Crypto 200

    964.02
    -50.90 (-5.02%)
     
  • FTSE 100

    6,658.97
    +33.03 (+0.50%)
     
  • Nikkei 225

    29,671.70
    -484.33 (-1.61%)
     

Return On Capital Employed Overview: Pfizer

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·1 min read
  • Oops!
    Something went wrong.
    Please try again later.

Looking at Q3, Pfizer (NYSE:PFE) earned $3.32 billion, a 7.54% increase from the preceding quarter. Pfizer also posted a total of $12.13 billion in sales, a 2.8% increase since Q2. In Q2, Pfizer earned $3.09 billion, and total sales reached $11.80 billion.

What Is ROCE?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Pfizer posted an ROCE of 0.05%.

Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

View more earnings on PFE

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

For Pfizer, the return on capital employed ratio shows the number of assets can actually help the company achieve higher returns, an important note investors will take into account when gauging the payoff from long-term financing strategies.

Q3 Earnings Insight

Pfizer reported Q3 earnings per share at $0.72/share, which beat analyst predictions of $0.71/share.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.