Common-Size Income Statement
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Gilead Sciences Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 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).
The common-size income statement reveals significant fluctuations in profitability and expense management over the five-year period. Product sales are consistently represented as 100% of revenue, allowing for a clear view of expense and profit margins as percentages of sales. A notable trend is the volatility in operating income and net income attributable to Gilead, indicating a period of instability followed by substantial recovery.
- Gross Profit
- Gross profit on product sales demonstrates a fluctuating pattern, beginning at 75.56% in 2021, increasing to 79.03% in 2022, then decreasing to 75.87% in 2023. It recovers to 78.15% in 2024 before reaching 78.44% in 2025. This suggests some variability in production costs or pricing strategies.
- Research and Development
- Research and development expenses consistently represent a substantial portion of product sales, ranging from 18.45% to 21.23%. However, acquired in-process research and development expenses and related impairment charges show significant volatility. These expenses increased substantially from 0.66% in 2021 to 4.29% in 2023, peaking at 16.30% in 2024 before decreasing to 3.54% in 2025. The presence of in-process research and development impairment further complicates the picture, with notable impacts in 2022, 2023, and 2024.
- Operating Income
- Operating income as a percentage of product sales experienced a substantial decline from 36.72% in 2021 to 27.17% in 2022, and 28.24% in 2023. A dramatic drop occurred in 2024, falling to 5.81%, before a strong recovery to 34.66% in 2025. This suggests significant challenges in maintaining profitability during 2024, followed by a successful turnaround.
- Net Income
- Net income mirrors the trend in operating income, declining from 22.96% in 2021 to 16.92% in 2022, increasing to 20.84% in 2023, plummeting to 1.68% in 2024, and then rebounding sharply to 29.43% in 2025. This indicates that changes in operating performance are directly impacting the bottom line.
- Other Income and Expenses
- Other income (expense), net, fluctuated considerably, moving from a negative 2.37% in 2021 to a positive 2.76% in 2025. Gains (losses) from equity securities also contributed to volatility, particularly the negative impact of -2.43% in 2022. Interest expense remained relatively stable, consistently around 3.5% of product sales.
- Tax Rate
- The effective tax rate, calculated as income tax expense divided by income before income taxes, varied significantly. It was 25.28% in 2021, 21.58% in 2022, 21.68% in 2023, 31.87% in 2024, and 13.03% in 2025. These fluctuations likely reflect changes in taxable income and applicable tax laws.
Overall, the period examined demonstrates a company navigating a dynamic environment. The significant decline in operating and net income in 2024, followed by a strong recovery in 2025, warrants further investigation to understand the underlying drivers of these changes. The substantial fluctuations in acquired in-process research and development expenses and related impairments also require attention.