Gilead Sciences Inc. (NASDAQ:GILD)

The financial data reveals significant fluctuations in both reported and adjusted net income attributable to the company over the five-year period.

Reported Net Income

In 2020, the company recorded reported net income of US$123 million, which then surged dramatically to US$6,225 million in 2021. Following this peak, the net income declined to US$4,592 million in 2022 but showed recovery to US$5,665 million in 2023. However, in 2024, there was a sharp reduction in reported net income to US$480 million.

Adjusted Net Income

The adjusted net income followed a similar trajectory to the reported net income. It was US$124 million in 2020, increased sharply to US$6,219 million in 2021, decreased to US$4,563 million in 2022, followed by an increase to US$5,693 million in 2023. In 2024, adjusted net income also dropped significantly to US$485 million.

Overall, the data exhibit a pattern of strong net income growth in 2021, followed by a decline in 2022, a partial rebound in 2023, and a substantial decrease in 2024 for both reported and adjusted figures. The close alignment between the reported and adjusted net income values throughout the period indicates consistency in the company's reporting adjustments. The marked volatility, especially the drastic decline in 2024, suggests significant underlying factors affecting profitability in that year.

Net Profit Margin Trends

The reported net profit margin experienced a significant increase from 0.51% in 2020 to a peak of 23.05% in 2021. This was followed by a decline to 17.02% in 2022, then a recovery to 21.03% in 2023, and a marked decrease to 1.68% in 2024. The adjusted net profit margin followed a similar pattern, starting at 0.51% in 2020, rising sharply to 23.03% in 2021, decreasing to 16.91% in 2022, increasing again to 21.14% in 2023, before falling notably to 1.7% in 2024.

Return on Equity (ROE) Trends

Reported ROE showed substantial growth from 0.68% in 2020 to a high of 29.55% in 2021, then a decline to 21.62% in 2022. It recovered slightly to 24.81% in 2023 before declining significantly to 2.48% in 2024. Adjusted ROE mirrored this trajectory closely, increasing from 0.68% in 2020 to 29.52% in 2021, dropping to 21.48% in 2022, rebounding to 24.93% in 2023, and then falling sharply to 2.51% in 2024.

Return on Assets (ROA) Trends

The reported ROA rose markedly from 0.18% in 2020 to 9.16% in 2021, followed by a decrease to 7.27% in 2022. It then increased again to 9.12% in 2023 before sharply decreasing to 0.81% in 2024. The adjusted ROA closely tracked these movements, rising from 0.18% in 2020 to 9.15% in 2021, falling slightly to 7.22% in 2022, increasing to 9.16% in 2023, and then dropping to 0.82% in 2024.

Overall Patterns and Insights

There is a consistent pattern across all metrics where company performance improved significantly in 2021, as indicated by sharp increases in net profit margin, ROE, and ROA. This peak was followed by decreases in 2022, partial recoveries in 2023, and dramatic declines in 2024 across all financial ratios. The close alignment between reported and adjusted figures suggests that adjustments had minimal impact on the overall trend. The sharp decline in 2024 could indicate unusual circumstances or challenges impacting profitability and efficiency.

Net Income Trends

The reported net income attributable to the company showed a significant increase from 123 million US dollars in 2020 to a peak of 6225 million US dollars in 2021. Following this peak, net income declined to 4592 million in 2022, then rose again to 5665 million in 2023, before sharply dropping to 480 million in 2024. The adjusted net income followed a very similar pattern, with minor numerical differences, peaking at 6219 million in 2021, declining to 4563 million in 2022, moderately increasing to 5693 million in 2023, and then falling to 485 million in 2024.

Net Profit Margin Patterns

The reported net profit margin mirrored the net income trend, increasing substantially from a very low 0.51% in 2020 to a high of 23.05% in 2021. This margin then decreased to 17.02% in 2022 before increasing to 21.03% in 2023. In 2024, the margin sharply declined to just 1.68%. The adjusted net profit margin exhibited almost identical movement, from 0.51% in 2020 to 23.03% in 2021, then down to 16.91% in 2022, rising slightly to 21.14% in 2023, and decreasing markedly to 1.7% in 2024.

Overall Observations

Both reported and adjusted figures reveal strong growth in profitability and net income in 2021, followed by volatility in subsequent years with notable declines after 2023. The consistency between reported and adjusted data indicates that non-recurring or exceptional adjustments had minimal impact on overall profitability trends. The dramatic reduction in income and margins in 2024 may signal significant operational or market challenges during that period. The data suggests a need for further investigation into the causes of the sharp downturn after a period of strong performance.

Net Income Attributable to Gilead

The reported net income exhibited significant volatility over the analyzed five-year period. Starting at a relatively low level of 123 million USD in 2020, it surged dramatically to a peak of 6,225 million USD in 2021. Subsequently, the income decreased to 4,592 million USD in 2022, then experienced a slight recovery to 5,665 million USD in 2023, before declining sharply to 480 million USD in 2024. The adjusted net income followed a closely similar trend, confirming consistency between reported and adjusted earnings metrics.

Return on Equity (ROE)

ROE displayed patterns closely mirroring the net income trends. Starting at a minimal level around 0.68%, it peaked around 29.5% in 2021. This was followed by a decline to roughly 21.5% in 2022 and a moderate increase to approximately 24.9% in 2023. Finally, there was a substantial reduction in 2024 down to around 2.5%. Both reported and adjusted ROE metrics were nearly identical throughout the period, indicating stable adjustments and reaffirming underlying profitability trends.

Overall Trends and Insights

The data indicates that in 2021 there was a significant financial improvement in profitability, as reflected in both net income and ROE. This is followed by a period of declining but stable performance in 2022 and 2023. The sharp decline in 2024 suggests that the company faced notable challenges impacting profitability and returns on equity during that year. The close alignment between reported and adjusted figures throughout the timeframe suggests limited impact of non-recurring items or adjustments on the key profitability indicators.

Net Income Trends

The reported net income attributable to the company increased substantially from 123 million US dollars in 2020 to a peak of 6225 million US dollars in 2021. Subsequently, it declined to 4592 million in 2022, showed a moderate recovery to 5665 million in 2023, and then dropped sharply to 480 million in 2024. The adjusted net income followed a very similar pattern across the same periods, with values closely matching the reported figures, indicating consistency between reported and adjusted financial results.

Return on Assets (ROA) Trends

Reported ROA exhibited a significant rise from a very low 0.18% in 2020 to 9.16% in 2021, reflecting a sharp improvement in asset profitability. This was followed by a decline to 7.27% in 2022. It then rebounded somewhat to 9.12% in 2023, before falling drastically to 0.81% in 2024. Adjusted ROA mirrored these movements closely, with almost identical values each year, suggesting that adjustments made to earnings did not materially impact the asset efficiency ratios.

Overall Financial Performance Insights

The company experienced a dramatic improvement in profitability and asset utilization between 2020 and 2021, followed by fluctuating yet generally lower performance levels in the subsequent years. The steep decline in both net income and ROA in 2024 is particularly notable, indicating a significant deterioration in financial outcomes during that period. The alignment between reported and adjusted figures suggests that the adjustments have minimal effect on the assessment of profitability and efficiency metrics over the observed timeline.