Stock Analysis on Net
Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Gilead Sciences Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Accounts payable 1.41 0.89 1.43 1.04 1.23
Accrued rebates 6.60 6.12 5.51 4.77 5.06
Current portion of long-term debt and other obligations, net 3.08 2.89 3.60 2.23 4.03
Compensation and employee benefits 2.08 1.93 1.61 1.36 1.26
Income taxes payable 2.79 1.94 1.52 0.79 0.87
Allowance for sales returns 0.54 0.62 0.67 0.73 0.86
Accrual for settlement related to bictegravir litigation 0.00 0.00 0.00 1.84 0.00
Other 3.85 3.76 3.45 4.31 3.34
Other current liabilities 9.26% 8.26% 7.25% 9.04% 6.34%
Current liabilities 20.35% 18.16% 17.79% 17.09% 16.66%
Long-term debt, net, excluding current portion 42.20 37.33 36.34 37.05 41.87
Long-term income taxes payable 1.41 3.28 6.20 7.02 7.33
Deferred tax liability 1.23 2.56 4.23 6.41 5.72
Other long-term obligations 2.20 2.06 1.87 1.44 1.77
Long-term liabilities 47.03% 45.22% 48.64% 51.92% 56.70%
Total liabilities 67.38% 63.38% 66.43% 69.00% 73.36%
Preferred stock, par value $0.001 per share; none outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, par value $0.001 per share 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 13.05 10.46 8.79 6.86 5.67
Accumulated other comprehensive income (loss) 0.22 0.05 0.00 0.12 -0.09
Retained earnings 19.49 26.24 24.83 24.02 21.02
Total Gilead stockholders’ equity 32.77% 36.75% 33.62% 31.01% 26.61%
Noncontrolling interest -0.14 -0.14 -0.05 -0.01 0.03
Total stockholders’ equity 32.62% 36.62% 33.57% 31.00% 26.64%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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 Liabilities
Current liabilities as a percentage of total liabilities and stockholders’ equity showed an overall increasing trend from 16.66% in 2020 to 20.35% in 2024, peaking progressively each year except for a slight decrease in 2023 compared to 2022. Notably, accrued rebates increased steadily from 5.06% to 6.6%, indicating rising rebate obligations. Conversely, allowance for sales returns declined from 0.86% to 0.54%, suggesting lower expected sales returns over the period. Accounts payable fluctuated but ended higher than in 2021, and income taxes payable almost tripled from 0.87% to 2.79%, pointing to increased tax liabilities.
Long-Term Liabilities
Long-term liabilities decreased from 56.7% in 2020 to a low of 45.22% in 2023 before slightly rising to 47.03% in 2024. The net long-term debt excluding current portion showed a decline between 2020 and 2022, then an increase to 42.2% in 2024, surpassing the initial level. Both long-term income taxes payable and deferred tax liability consistently declined, with deferred tax liability dropping sharply from 5.72% to 1.23%. Other long-term obligations increased moderately. Overall, this indicates a gradual reduction in some long-term tax-related liabilities while the company maintained or increased its core long-term debt burden.
Total Liabilities
Total liabilities as a proportion of the capital structure decreased steadily from 73.36% in 2020 to 63.38% in 2023, followed by a notable rise to 67.38% in 2024. This pattern reflects a general deleveraging trend until 2023, with a partial reversal in the last period.
Stockholders’ Equity
Total stockholders’ equity grew from 26.64% in 2020 to a peak of 36.62% in 2023, then decreased to 32.62% in 2024. This increase was driven mainly by additional paid-in capital rising substantially from 5.67% to 13.05%, and retained earnings growing from 21.02% to 26.24% before falling to 19.49% in the last year. The accumulated other comprehensive income remained close to zero but became slightly positive over time. These movements indicate equity strengthening through capital contributions and earnings accumulation until 2023, followed by a reduction in retained earnings and overall equity in 2024.
Other Observations
Compensation and employee benefits-related liabilities steadily increased from 1.26% to 2.08%, reflecting rising obligations or provisions. Other current liabilities fluctuated but exhibited a general upward trend, rising from 6.34% to 9.26%, contributing to the growth in current liabilities. The noncontrolling interest remained negligible and negative in later years, indicating minimal impact. An accrual related to bictegravir litigation appeared only in 2021 at 1.84%, with no subsequent values, implying a resolved or one-time charge.
Overall Summary
The data reveals a shift towards a stronger equity position and reduced leverage from 2020 through 2023, marked by declining total liabilities and expanding equity, driven mainly by increased paid-in capital and retained earnings. However, 2024 exhibits a reversal with rising liabilities and a decline in equity, particularly retained earnings, suggesting increased financial risk or strategic financing changes. Current liabilities grew consistently, driven by rebates, taxes, and other obligations, while long-term tax-related liabilities decreased. The pattern reflects evolving balance sheet management with fluctuations in capital structure components over the five-year period.