AstraZeneca PLC(AZN) in fiscal 2022 has six reportable products sales: Oncology($14.6 billion ), Cardiovascular, Renal & Metabolism($9.18 billion ), Respiratory & Immunology($5.76 billion ), Vaccines & Immune Therapies($4.7 billion ), Rare Disease ($7 billion )and other($1.6 billion ).  

Profitability analysis

AstraZeneca PLC(AZN) reported total revenues of $44.3 billion, $37.4 billion and $26.6 billion in 2022,in 2021 and in 2020.

Generally, pharmaceutical corporation have a high level of profitability, but AstraZenzca PLC(AZN) have not.

AstraZeneca PLC(AZN) generated net income of $3.29 billion, $0.1 billion and $3.1 billion in 2022,in 2021 and in 2020.

The net profit margin was 7.4%,0.26% and 11.6% in fiscal 2022, 2021 and 2020.

The total assets was $96.4 billion and the total equity was $37 billion in fiscal 2022.

The return on assets was 3.4% in 2022 and the return on equity was 8.9% in 2022.

Asset structure analysis

AstraZeneca PLC(AZN) reported goodwill of $19.8 billion in 2022, which accounted for 20.5% of total assets.

The Intangible assets was $39.3 billion ,which consist of 40.7% of total assets.

Liquidity and solvency analysis

The current ratio was about 0.86 times at September 31,2022 ,which indicates that current assets covered current liabilities 0.86 time.

The cash flow liquidity ratio was about 0.61 times at September 31,2022.

Assets liquidity and asset management efficiency

The accounts receivable turnover ratio was 4.40 times and the average collection period was 82.95 days in 2022.

The inventory turnover ratio was 6.50 times and the days inventory held was 56.1 days in 2022.

The accounts payable turnover ratio was 2.33 times, the days payable outstanding was 156.65 days in 2022.

The cash conversion cycle was -17.6 days .

We could see that AstraZeneca PLC(AZN) takes 139 days to sell inventory and collect the cash, yet its suppliers are being paid in 157 days.

We think that the company has strong ability of obtain supplier credit, which is not good for suppliers.

Cash flow analysis

The corporation reported net inflow from operating activities of $9.8 billion, $5.9 billion and $4.8 billion in 2022,in 2021 and 2020.

The cash flow adequacy was 1.21 times,0.56 times and 0.61 times in 2022, in 2021 and in 2020.

9M and Q3 2023 results

The company reported $33.7 billion and $33.1 billion in the nine months to September 30,2023 and in the nine months to September 30,2022.

The profit after tax was $6 billion and $1.7 billion in the nine months to September 30,2023 and in the nine months to September 30,2022.The profit after tax in the nine months to September 30,2023 increased dramatically because the cost of sales plunged.

The net cash inflow from operating activities was $7.9 billion and $7.4 billion in the nine months to September 30,2023 and in the nine months to September 30,2022.

Summary

AstraZeneca PLC(AZN) have bargaining power considerably for suppliers , which bring on huge cash flow.

Now ,the company ’market capitalization is $215.2 billion, and its stock price is $69.42 per share.

We reckon that the corporation ’market value is overestimated and that it is worth about $ 100 billion.