Financial statement analysis and common stock valuation

Analysis of Geographic Areas

Gilead Sciences Inc. operates in 2 regions: U.S. and International.

• Area Asset Turnover
• Revenues
• Property, plant and equipment, net

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Gilead Sciences Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Gilead Sciences Inc. balance sheet.

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Gilead Sciences Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Analysis of Solvency Ratios

Examines Gilead Sciences Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Gilead Sciences Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Gilead Sciences Inc. assets. Operating performance ratios describe the relationship between the Gilead Sciences Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Analysis of Profitability Ratios

Measures the income of Gilead Sciences Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Gilead Sciences Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Gilead Sciences Inc., the result of its operating activities.

Analysis of Revenues

• Revenues as Reported