Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

$24.99

Analysis of Income Taxes

Microsoft Excel

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Income Tax Expense (Benefit)

Gilead Sciences Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal
State
Foreign
Current
Federal
State
Foreign
Deferred
Income tax expense

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Current Income Tax Expense
The current income tax expense exhibited an overall increasing trend from 2020 through 2022, rising from $1,803 million in 2020 to a peak of $2,803 million in 2022. This was followed by a decline in the subsequent two years, decreasing to $2,242 million in 2023 and further to $2,053 million in 2024.
Deferred Income Tax Expense
The deferred income tax expense displayed a notably volatile pattern, starting with a negative value of -$223 million in 2020 and moving towards a less negative amount of -$112 million in 2021. However, a sharp movement occurred in 2022 with a significant increase in the negative figure to -$1,555 million, which slightly improved to -$995 million in 2023 before again deepening to -$1,842 million in 2024. This indicates considerable fluctuations in deferred tax liabilities or assets over the analyzed period.
Total Income Tax Expense
The total income tax expense, combining current and deferred components, experienced notable variability. After increasing from $1,580 million in 2020 to $2,077 million in 2021, the total expense decreased substantially to $1,248 million in 2022 and remained relatively steady at $1,247 million in 2023. A marked decline occurred in 2024, reducing the total income tax expense to $211 million. This sharp reduction is primarily driven by the pronounced negative deferred tax effect during the latest period.
Summary of Trends
The data indicates that while the current income tax expense generally increased before declining in the final two years, the deferred income tax expense experienced large swings with increasingly negative values. The pattern of total income tax expense mirrors these shifts, with an initial increase followed by a plateau and then a steep drop in the final year. This suggests significant changes in the company's deferred tax positions, which may reflect alterations in temporary differences, tax planning strategies, or changes in tax regulations or rates during the period evaluated.

Effective Income Tax Rate (EITR)

Gilead Sciences Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal statutory tax rate
State taxes, net of federal benefit
Foreign earnings at different rates
Research and other credits
US tax on foreign earnings
Foreign-derived intangible income deduction
Tax examinations
Acquired IPR&D & related charges
Changes in valuation allowance
Non-taxable unrealized loss on investment
Legal entity restructuring
Other
Effective tax rate

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Federal Statutory Tax Rate
The federal statutory tax rate remained constant at 21% throughout the period analyzed, showing no variation over the five years.
State Taxes, Net of Federal Benefit
State taxes exhibited considerable volatility, starting at 4.2% in 2020, declining to 2.5% in 2021, becoming negative at -2% in 2022, returning to a small positive of 2.3% in 2023, and plunging sharply to -43.6% in 2024. This indicates significant fluctuations and a substantial tax benefit or credit recognized in 2024.
Foreign Earnings at Different Rates
Foreign earnings rates were negative from 2020 through 2023, with percentages close to zero but negative, signaling minor tax reductions or credits on foreign earnings. In 2024, this trend reversed to a positive 10.9%, indicating a shift to a taxable position or increased foreign tax rates impacting earnings.
Research and Other Credits
Research and other credits showed negative values consistently, reflecting tax benefits. These credits were less favorable over time, moving from -6.9% in 2020 to worsened timing and amounts by 2024 with -31.6%, suggesting enhanced utilization or recognition of research credits in the most recent year.
US Tax on Foreign Earnings
This category demonstrated small values from 2020 to 2023, fluctuating between 1.0% and 7.2%. However, in 2024, the tax on foreign earnings rose sharply to 12.1%, which may indicate increased repatriation or higher taxable foreign income.
Foreign-Derived Intangible Income Deduction
The deduction remained negative across the years, signifying tax reductions related to intangible income sourced from foreign markets. The magnitude fluctuated but increased in absolute terms in 2024 to -19.3%, suggesting increased benefits from this deduction in the latest year.
Tax Examinations
Tax examinations had a strongly negative impact in 2020 at -10.2%, then reduced in magnitude to near zero in subsequent years, before falling sharply again to -33.7% in 2024. This points to significant adjustments or benefits arising from tax audits or settlements in the initial and final years.
Acquired IPR&D and Related Charges
Values for acquired In-Process Research and Development (IPR&D) and related charges were irregular, absent in some years. A notable spike occurred in 2024 at 117.3%, indicating a substantial charge or adjustment related to acquired intangible assets in that year.
Changes in Valuation Allowance
Changes in valuation allowance were positive but relatively minor, decreasing slightly from 6.7% in 2020 to under 1% from 2021 through 2023, then rising again to 15.6% in 2024. This suggests fluctuating assessments of deferred tax asset realizability.
Non-taxable Unrealized Loss on Investment
Non-taxable unrealized losses on investments were significant in 2020 at 23%, then diminished considerably in subsequent years to below 1%, returning moderately to 6.8% in 2024. This indicates large unrealized investment losses impacting tax calculations primarily in 2020 and to a lesser degree in 2024.
Legal Entity Restructuring
This item appeared only in 2024 with a notable negative value of -52.6%, reflecting a substantial tax impact from corporate restructuring undertaken in the most recent year.
Other
The ‘Other’ category was positive throughout, ranging from 1.4% to 27.6%, with generally increasing values over time, indicating miscellaneous tax effects growing moderately across the period.
Effective Tax Rate
The effective tax rate showed wide variation, unusually high at 94.7% in 2020, then declining sharply to 25.1% in 2021, further trending downward to 18.2% by 2023 before rising again to 30.5% in 2024. This pattern reflects substantial volatility in the overall tax burden, influenced by the fluctuations in state taxes, tax credits, tax examinations, and restructuring charges observed in the same period.

Components of Deferred Tax Assets and Liabilities

Gilead Sciences Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating loss carryforwards
Stock-based compensation
Reserves and accruals not currently deductible
Excess of tax basis over book basis of intangible assets
Upfront and milestone payments
Research and other credit carryforwards
Equity investments
Liability related to future royalties
Capitalized R&D expenditures
Capital losses
Other, net
Deferred tax assets before valuation allowance
Valuation allowance
Deferred tax assets
Property, plant and equipment
Excess of book basis over tax basis of intangible assets
Other
Deferred tax liabilities
Net deferred tax assets (liabilities)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Net Operating Loss Carryforwards
This item exhibited a declining trend overall, decreasing from 587 million USD at the end of 2020 to 288 million USD by the end of 2024, indicating a reduction in tax loss carryforwards available to offset future taxable income.
Stock-Based Compensation
The values gradually decreased over the period, from 113 million USD in 2020 down to 84 million USD in 2024, reflecting potentially lower expenses related to equity-based employee compensation.
Reserves and Accruals Not Currently Deductible
These reserves increased from 444 million USD in 2020 to 685 million USD in 2024, showing a rising trend that may point to higher accrued liabilities or timing differences unrelated to current tax deductions.
Excess of Tax Basis Over Book Basis of Intangible Assets
There was a consistent decline from 1177 million USD in 2020 down to 910 million USD by 2024, indicating a diminishing difference in tax basis relative to book basis of intangibles.
Upfront and Milestone Payments
This category showed overall growth with some fluctuation, increasing from 1144 million USD in 2020 to 1312 million USD in 2024, reflecting increasing prepayments or contingent payments possibly related to licensing or partnerships.
Research and Other Credit Carryforwards
Research credits expanded significantly from 219 million USD in 2020 to 428 million USD in 2024, suggesting increasing utilization or accumulation of tax credits related to research and development activities.
Equity Investments
There was a steady rise from 116 million USD in 2020 to 237 million USD in 2024, indicating growing stakes or valuation increases in associated companies.
Liability Related to Future Royalties
This liability moderately increased from 247 million USD in 2020 to 287 million USD in 2024, with some minor fluctuations, implying ongoing obligations or expected payments related to royalty agreements.
Capitalized R&D Expenditures
Capitalized research and development costs were reported starting in 2022 with 784 million USD, then significantly increased to 2173 million USD by 2024, showing a strategic emphasis on recognizing R&D assets on the balance sheet.
Capital Losses
Capital losses were absent prior to 2023 but showed a notable jump from 17 million USD in 2023 to 590 million USD in 2024, indicating significant realized losses potentially available for tax benefits.
Other, Net
This item slightly declined overall, dropping from 311 million USD in 2020 to 213 million USD in 2024, signaling reduced net miscellaneous tax-related items.
Deferred Tax Assets Before Valuation Allowance
There was a consistent increase from 4358 million USD in 2020 up to 7207 million USD in 2024, reflecting growth in temporary deductible differences and carryforwards creating deferred tax assets.
Valuation Allowance
The valuation allowance became more negative, increasing in absolute terms from -398 million USD in 2020 to -1217 million USD in 2024, signifying increased exclusion of deferred tax assets due to uncertainty around recoverability.
Deferred Tax Assets
Net deferred tax assets, after considering valuation allowances, increased from 3960 million USD in 2020 to 5990 million USD in 2024, indicating a strengthening position in expected future tax benefits.
Property, Plant, and Equipment
This category represented deferred tax liabilities and slightly increased in magnitude from -202 million USD in 2020 to -276 million USD in 2024, suggesting stable tax timing differences relating to fixed assets.
Excess of Book Basis Over Tax Basis of Intangible Assets
There was a decreasing negative balance from -6168 million USD in 2020 to -3836 million USD in 2024, reflecting a narrowing difference with potential implications for future taxable amounts.
Other Deferred Tax Liabilities
This item fluctuated marginally but with a slight increase in magnitude, moving from -202 million USD in 2020 to -224 million USD in 2024.
Deferred Tax Liabilities
Overall, deferred tax liabilities reduced substantially from -6572 million USD in 2020 to -4336 million USD in 2024, indicating a contraction of temporary taxable differences or changes in tax positions.
Net Deferred Tax Assets (Liabilities)
There was a significant improvement, moving from a net liability position of -2612 million USD in 2020 to a net asset position of 1654 million USD in 2024. This reflects an overall strengthening in deferred tax positions and an improved balance between deductible and taxable temporary differences.

Deferred Tax Assets and Liabilities, Classification

Gilead Sciences Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax asset
Deferred tax liability

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Deferred Tax Asset
The deferred tax asset remained relatively stable from 2020 through 2023, with a slight decline from 1302 million US dollars at the end of 2020 to 1196 million US dollars at the end of 2023. However, there was a significant increase in 2024, rising substantially to 2378 million US dollars. This indicates a marked improvement in recoverable tax benefits expected in the future during 2024.
Deferred Tax Liability
The deferred tax liability exhibited a declining trend across the observed period. Starting at 3914 million US dollars in 2020, it increased to 4356 million US dollars in 2021 but then decreased sharply over the next three years to 2673 million in 2022, 1588 million in 2023, and further down to 724 million in 2024. This movement suggests a substantial reduction in the company's future tax obligations, reflecting either changes in tax regulations, adjustments of deferred tax balances, or operational factors influencing taxable temporary differences.
Overall Analysis
The company experienced a stable to slightly declining deferred tax asset position initially, followed by a sharp increase in 2024, which may indicate expectations of higher future taxable income or tax planning strategies. Simultaneously, the deferred tax liability decreased dramatically from its peak in 2021 to much lower levels by 2024, reducing potential future tax outflows. These divergent trends between deferred tax assets and liabilities collectively imply a potential strengthening of the company's tax positions and improved future cash flow prospects related to income tax payments.

Adjustments to Financial Statements: Removal of Deferred Taxes

Gilead Sciences Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)
Less: Noncurrent deferred tax assets, net
Total assets (adjusted)
Adjustment to Total Liabilities
Total liabilities (as reported)
Less: Noncurrent deferred tax liabilities, net
Total liabilities (adjusted)
Adjustment to Total Gilead Stockholders’ Equity
Total Gilead stockholders’ equity (as reported)
Less: Net deferred tax assets (liabilities)
Total Gilead stockholders’ equity (adjusted)
Adjustment to Net Income Attributable To Gilead
Net income attributable to Gilead (as reported)
Add: Deferred income tax expense (benefit)
Net income attributable to Gilead (adjusted)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Asset Trends
Both reported and adjusted total assets demonstrate a consistent downward trend over the five-year period from 2020 to 2024. Reported total assets decreased from 68,407 million USD in 2020 to 58,995 million USD in 2024, reflecting a reduction of approximately 14%. Similarly, adjusted total assets fell from 67,105 million USD to 56,617 million USD during the same period, aligning closely with reported figures but consistently slightly lower.
Liabilities Trends
Reported total liabilities show a significant decline from 50,186 million USD in 2020 to 39,749 million USD in 2024, representing a drop of around 20.8%. Adjusted total liabilities exhibit a similar downward trend, decreasing from 46,272 million USD to 39,025 million USD. The decline in liabilities indicates an overall reduction in financial obligations over the period, which may relate to improved debt management or paydown activity.
Stockholders’ Equity Trends
The reported total stockholders’ equity increases from 18,202 million USD in 2020 to a peak of 22,833 million USD in 2023 before declining significantly to 19,330 million USD in 2024. Adjusted stockholders' equity follows a similar pattern rising from 20,814 million USD to 23,225 million USD in 2023, then dropping sharply to 17,676 million USD in 2024. This volatility suggests variability in retained earnings or revaluation adjustments, with a notable equity contraction in the most recent period.
Net Income attributable to Gilead
Reported net income shows substantial growth from a modest 123 million USD in 2020 to a high of 6,225 million USD in 2021, followed by a decline to 4,592 million USD in 2022 and moderate recovery to 5,665 million USD in 2023, then sharply falling to 480 million USD in 2024. Adjusted net income exhibits a different pattern, starting with a negative figure (-100 million USD) in 2020, rising to 6,113 million USD in 2021, then declining steadily to 3,037 million USD in 2022 and 4,670 million USD in 2023, before moving into negative territory again (-1,362 million USD) in 2024. The divergence between reported and adjusted net income in 2024 is notable, indicating significant adjustments or one-time items impacting profitability.
Summary and Insights
Over the five-year period, the company displays contracting asset and liability bases, suggesting a downsizing or strategic shift possibly aimed at focusing on core operations or improving balance sheet strength. The fluctuations in equity correspond to changes in net income and potentially reflect financial restructuring or charges affecting shareholders’ value. Reported net income indicates strong financial performance in 2021 and 2023, but the adjusted figures highlight underlying volatility and challenges, particularly in 2024 where adjusted net income sharply declines and turns negative. This contrast suggests that reported earnings may have been influenced by accounting or tax-related items, thereby obscuring the operational profitability trends in the latest period.

Gilead Sciences Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Gilead Sciences Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin
Adjusted net profit margin
Total Asset Turnover
Reported total asset turnover
Adjusted total asset turnover
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE
Adjusted ROE
Return on Assets (ROA)
Reported ROA
Adjusted ROA

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The financial data reveals several notable trends in profitability, efficiency, leverage, and returns over the five-year period.

Profitability Margins
The reported net profit margin demonstrates significant fluctuations. It starts very low at 0.51% in 2020, surges to a peak of 23.05% in 2021, then declines gradually to 17.02% in 2022 and rebounds to 21.03% in 2023, before sharply decreasing to 1.68% in 2024. The adjusted net profit margin follows a somewhat similar pattern but shows more volatility and weaker outcomes in some years, with a negative margin in 2020 (-0.41%) and again in 2024 (-4.76%). The peak adjusted margin is lower than the reported, reaching 22.63% in 2021 and then declining significantly after 2022.
Total Asset Turnover
Both reported and adjusted total asset turnover ratios indicate a steadily improving efficiency in asset utilization. The reported ratio rises consistently from 0.36 in 2020 to 0.48 in 2024, while the adjusted ratio shows a similar but slightly higher trajectory, increasing from 0.36 to 0.51 over the same period. This suggests an ongoing improvement in the company’s ability to generate revenue from its assets.
Financial Leverage
Financial leverage ratios, both reported and adjusted, exhibit a downward trend from 2020 through 2023, indicating a reduction in the use of debt or liabilities relative to equity. Reported leverage falls from 3.76 to 2.72 before rising slightly to 3.05 in 2024. Adjusted leverage follows a similar pattern, dropping from 3.22 to 2.62 and then increasing to 3.20. This suggests a cautious approach to leverage application with a slight increase in the most recent year.
Return on Equity (ROE)
Reported ROE echoes the pattern of the net profit margin, with a very low return of 0.68% in 2020 that jumps dramatically to 29.55% in 2021. It then decreases to 21.62% in 2022, rises again to 24.81% in 2023, and falls substantially to 2.48% in 2024. Adjusted ROE is more volatile and generally lower, with negative values in 2020 (-0.48%) and 2024 (-7.71%), and a peak of 25.38% in 2021 followed by declines to 13.4% and 20.11% in subsequent years.
Return on Assets (ROA)
The reported ROA shows significant variability, starting at 0.18% in 2020 before a sharp increase to 9.16% in 2021. It then declines gradually to 7.27% in 2022, recovers to 9.12% in 2023, and dips to 0.81% in 2024. Adjusted ROA follows a similar pattern, but with negative values in 2020 (-0.15%) and again in 2024 (-2.41%), indicating weaker asset profitability when adjustments are made.

Overall, the data illustrates that the company experienced a period of pronounced improvement in profitability and returns between 2020 and 2021, followed by a general decline or volatility in subsequent years, particularly evident in the adjusted measures. Asset turnover ratios steadily improve, indicating enhanced operational efficiency. Meanwhile, financial leverage decreased through most of the period but showed a modest resurgence in the final year. The discrepancies between reported and adjusted figures highlight the impact of accounting adjustments on financial performance assessment, particularly in profitability and returns metrics.


Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead
Product sales
Profitability Ratio
Net profit margin1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead
Product sales
Profitability Ratio
Adjusted net profit margin2

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net income attributable to Gilead ÷ Product sales
= 100 × ÷ =

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Gilead ÷ Product sales
= 100 × ÷ =


The reported net income attributable to Gilead demonstrates considerable volatility over the observed periods. Starting from a modest US$123 million in 2020, there was a significant surge to US$6.225 billion in 2021. This was followed by a decline to US$4.592 billion in 2022, a slight recovery to US$5.665 billion in 2023, and then a sharp drop to US$480 million in 2024. This pattern indicates pronounced fluctuations in profitability, with 2021 representing an exceptional high point and 2024 showing a substantial decrease.

The adjusted net income attributable to Gilead displays a similar volatile pattern but with even greater variability. It began with a negative value of -US$100 million in 2020, sharply increased to US$6.113 billion in 2021, then decreased notably to US$3.037 billion in 2022. The figure rose again to US$4.670 billion in 2023 before turning negative at -US$1.362 billion in 2024. This sequence highlights periods of strong earnings adjusted for non-recurring or deferred tax effects, but also periods with losses indicating potentially significant adjustments impacting the net income figure.

The reported net profit margin trend aligns with the reported net income, showing an initial low margin of 0.51% in 2020, followed by a steep increase to 23.05% in 2021. There was a decrease to 17.02% in 2022, a subsequent rise to 21.03% in 2023, and finally a precipitous fall to 1.68% in 2024. This trend corroborates the sharp fluctuations in profitability relative to revenue over the years.

The adjusted net profit margin also reflects a similar trend of variability. It started in negative territory at -0.41% in 2020, increased significantly to 22.63% in 2021, then decreased to 11.26% in 2022. It recovered somewhat to 17.34% in 2023 before declining sharply to -4.76% in 2024. This indicates that after adjustments, the company’s profitability margins have also exhibited instability, with 2024 marking a period of adjusted losses relative to revenue.

Summary of Trends
Both reported and adjusted net incomes exhibit high volatility from 2020 to 2024, peaking strongly in 2021 and declining sharply by 2024.
The adjusted figures suggest that non-recurring or deferred tax adjustments significantly affect the net income results, sometimes reversing profitability trends.
Reported and adjusted net profit margins closely follow the income trends, confirming variations in profitability ratios alongside net income.
The negative margins and net income in 2020 and 2024 for the adjusted figures indicate years with substantial financial adjustments impacting overall earnings negatively.
The decrease in both reported and adjusted profitability metrics in 2024 highlights potential challenges faced during that period warranting further investigation.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Product sales
Total assets
Activity Ratio
Total asset turnover1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Product sales
Adjusted total assets
Activity Ratio
Adjusted total asset turnover2

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Product sales ÷ Total assets
= ÷ =

2 Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= ÷ =


Total Assets Trends
Reported total assets display a gradual decline over the five-year period, decreasing from 68,407 million US dollars at the end of 2020 to 58,995 million US dollars by the end of 2024. This represents a reduction of approximately 13.8%. Similarly, adjusted total assets show a consistent downward trend, falling from 67,105 million US dollars in 2020 to 56,617 million US dollars in 2024, a decrease of roughly 15.6%. The marginal difference between reported and adjusted figures suggests relatively minor adjustments related to income tax considerations.
Total Asset Turnover Trends
Reported total asset turnover demonstrates an improving trend, rising steadily from 0.36 in 2020 to 0.48 in 2024. This indicates enhanced efficiency in generating revenues from asset utilization over time. Adjusted total asset turnover follows a similar upward trajectory, increasing from 0.36 in 2020 to 0.51 in 2024, slightly surpassing the reported figures in later periods. The increase in adjusted turnover ratio underlines improving operational performance after adjusting for deferred income tax effects.
Insights and Patterns
The consistent decrease in total assets, both reported and adjusted, alongside an increasing total asset turnover ratio, suggests a strategic focus on asset optimization and possibly divestiture or asset write-downs. The organization appears to be generating higher revenue per unit of asset over time, reflecting improved asset management or a shift towards more revenue-efficient asset bases. The alignment between reported and adjusted metrics highlights a stable impact of deferred income taxes on the asset base and turnover calculations.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets
Total Gilead stockholders’ equity
Solvency Ratio
Financial leverage1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets
Adjusted total Gilead stockholders’ equity
Solvency Ratio
Adjusted financial leverage2

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= ÷ =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Gilead stockholders’ equity
= ÷ =


Total Assets
The reported total assets of the company show a consistent decline over the period from 2020 to 2024, decreasing from $68,407 million to $58,995 million. Similarly, the adjusted total assets follow the same downward trend, falling from $67,105 million in 2020 to $56,617 million by 2024. This persistent reduction indicates an ongoing contraction in the asset base.
Stockholders’ Equity
The reported total stockholders’ equity initially increased from $18,202 million in 2020 to a peak of $22,833 million in 2023, before declining sharply to $19,330 million in 2024. In contrast, the adjusted stockholders’ equity rose more markedly from $20,814 million in 2020 to $24,086 million in 2021, then declined steadily through 2024, reaching $17,676 million. This pattern suggests fluctuations in equity with a notable downturn by the end of the examined period, especially in the adjusted figures.
Financial Leverage
The reported financial leverage ratio consistently decreased from 3.76 in 2020 to 2.72 in 2023, indicating a reduction in leverage, which may suggest improved equity financing or reduced reliance on debt. However, in 2024, this ratio rose again to 3.05, signaling a reversal of the prior trend. The adjusted financial leverage follows a similar trajectory, decreasing from 3.22 in 2020 to 2.62 in 2023, then increasing sharply to 3.20 in 2024. The increases in 2024 across both reported and adjusted leverage ratios could indicate increased borrowing or a reduction in equity base relative to assets during that year.
Overall Trends and Insights
Throughout the period, totals for assets diminished steadily, while stockholders' equity experienced growth followed by a decline, particularly pronounced in the adjusted data. Financial leverage ratios initially declined, reflecting improved leverage positions, but the uptick in 2024 suggests a potential increase in financial risk or a strategic shift in capital structure. The divergence between reported and adjusted equity values, especially the sharper decline observed in adjusted equity by 2024, may reflect significant deferred tax impacts or other accounting adjustments affecting shareholders' equity. These dynamics merit close monitoring to assess implications for financial stability and capital management strategy.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead
Total Gilead stockholders’ equity
Profitability Ratio
ROE1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead
Adjusted total Gilead stockholders’ equity
Profitability Ratio
Adjusted ROE2

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income attributable to Gilead ÷ Total Gilead stockholders’ equity
= 100 × ÷ =

2 Adjusted ROE = 100 × Adjusted net income attributable to Gilead ÷ Adjusted total Gilead stockholders’ equity
= 100 × ÷ =


Reported Net Income Attributable to Gilead
The reported net income shows a significant increase from 123 million USD in 2020 to a peak of 6,225 million USD in 2021, followed by a gradual decline over the next two years to 4,592 million USD in 2022 and 5,665 million USD in 2023. In 2024, the net income drops sharply to 480 million USD, indicating substantial variability and a notable decrease in profitability in the most recent year.
Adjusted Net Income Attributable to Gilead
The adjusted net income follows a somewhat similar pattern but with greater volatility. It starts at a negative value of -100 million USD in 2020, rises sharply to 6,113 million USD in 2021, and then experiences a steady decrease to 3,037 million USD in 2022 and a recovery to 4,670 million USD in 2023. However, in 2024, it turns negative again to -1,362 million USD, which suggests that the adjustments applied noticeably affect the reported profitability and imply potential adjusted losses in the latest period.
Reported Total Gilead Stockholders’ Equity
The reported equity shows a consistent upward trend from 18,202 million USD in 2020 to a peak at 22,833 million USD in 2023. However, in 2024, it declines significantly to 19,330 million USD. This pattern indicates growing shareholder value over the four years until a marked decrease in the most recent period.
Adjusted Total Gilead Stockholders’ Equity
The adjusted equity follows a similar trajectory but with fluctuations in magnitude. It increases from 20,814 million USD in 2020 to a high of 24,086 million USD in 2021, then declines to 22,672 million USD in 2022, with a slight recovery in 2023 to 23,225 million USD. Nevertheless, in 2024, adjusted equity decreases significantly to 17,676 million USD, representing a pronounced contraction relative to previous years and a sharper drop than the reported equity figure.
Reported Return on Equity (ROE)
The reported ROE rises dramatically from 0.68% in 2020 to a strong 29.55% in 2021, followed by a gradual decline to 21.62% in 2022 and 24.81% in 2023. In 2024, ROE plummets to 2.48%, reflecting a significant reduction in profitability relative to equity in the latest period. Overall, the ROE trend highlights high profitability in 2021 and moderate returns in subsequent years before a substantial decline.
Adjusted Return on Equity (ROE)
The adjusted ROE displays a more volatile pattern, starting from a negative -0.48% in 2020, increasing to 25.38% in 2021, and then dropping consistently to 13.4% in 2022 and rising again to 20.11% in 2023. In 2024, adjusted ROE turns negative again at -7.71%, indicating losses relative to adjusted equity and emphasizing the impact of adjustments on profitability measurements.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead
Total assets
Profitability Ratio
ROA1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead
Adjusted total assets
Profitability Ratio
Adjusted ROA2

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × ÷ =

2 Adjusted ROA = 100 × Adjusted net income attributable to Gilead ÷ Adjusted total assets
= 100 × ÷ =


Net Income Trends
Reported net income attributable to Gilead shows significant volatility across the periods. Starting from a low of 123 million US dollars in 2020, it increased sharply to a peak of 6,225 million in 2021, followed by a decline to 4,592 million in 2022. It then rose again to 5,665 million in 2023 before falling dramatically to 480 million in 2024.
Adjusted net income exhibits a more volatile pattern with negative values in both 2020 (-100 million) and 2024 (-1,362 million). After the negative start in 2020, adjusted net income rose considerably to 6,113 million in 2021 but declined sharply to 3,037 million in 2022. It somewhat recovered to 4,670 million in 2023 before turning negative again the following year.
Assets Trends
Both reported and adjusted total assets show a consistent declining trend over the five years, indicating a gradual reduction in asset base. Reported total assets decreased from 68,407 million US dollars in 2020 to 58,995 million in 2024. Adjusted total assets followed a similar pattern, falling from 67,105 million in 2020 to 56,617 million in 2024.
The adjusted total assets are consistently slightly lower than the reported values in each corresponding year, suggesting downward adjustments possibly related to deferred tax or other accounting considerations.
Return on Assets (ROA)
Reported ROA improved significantly from 0.18% in 2020 to a peak of 9.16% in 2021, before declining to 7.27% in 2022 and then rebounding slightly to 9.12% in 2023. In 2024, reported ROA plummeted to 0.81%, mirroring the sharp decline in net income for that year.
Adjusted ROA follows a similar pattern but with more pronounced volatility and negative values in 2020 and 2024. It began at -0.15% in 2020, improved to 9.18% in 2021, then declined to 4.9% in 2022 and increased again to 7.66% in 2023, before dropping to -2.41% in 2024.
Overall Insights
The financial data suggests that the company experienced strong profitability growth in 2021, sustained relatively high returns in 2022 and 2023, but faced a marked downturn in 2024. The declining asset base over the period may indicate asset sales, disposals, or other balance sheet restructuring.
Adjusted net income and adjusted ROA show more pronounced negative results in 2020 and 2024, indicating that adjustments for deferred income taxes or other factors significantly impact the reported profitability in those years.
The disparities between reported and adjusted figures highlight the importance of considering both metrics to fully understand the financial performance and underlying accounting impacts over time.