Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Gilead Sciences Inc. (NASDAQ:GILD)

Financial Reporting Quality: Aggregate Accruals

Advanced level


Balance-Sheet-Based Accruals Ratio

Gilead Sciences Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 61,627  63,675  70,283  56,977  51,839 
Less: Cash and cash equivalents 11,631  17,940  7,588  8,229  12,851 
Less: Short-term marketable securities 12,721  12,149  17,922  3,666  1,756 
Operating assets 37,275  33,586  44,773  45,082  37,232 
Operating Liabilities
Total liabilities 38,977  42,141  49,782  37,614  32,724 
Less: Current portion of long-term debt and other obligations, net 2,499  2,748  2,747  —  983 
Less: Long-term debt, net, excluding current portion 22,094  24,574  30,795  26,346  21,195 
Operating liabilities 14,384  14,819  16,240  11,268  10,546 
 
Net operating assets1 22,891  18,767  28,533  33,814  26,686 
Balance-sheet-based aggregate accruals2 4,124  (9,766) (5,281) 7,128 
Financial Ratio
Balance-sheet-based accruals ratio3 19.80% -41.29% -16.94% 23.56%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.97% -6.71% 69.42% -1.06%
AbbVie Inc. -24.37% -31.42% -7.02% 25.20%
Allergan PLC -14.93% -11.32% 1.78% -21.00%
Amgen Inc. 56.66% -9.88% -33.04% -6.85%
Biogen Inc. -4.05% 3.85% 7.67% 9.75%
Bristol-Myers Squibb Co. 147.33% -3.17% -24.97% -0.82%
Eli Lilly & Co. -0.10% -10.27% -5.99% 1.26%
Illumina Inc. -2.16% 10.15% 6.34% 23.87%
Johnson & Johnson -3.85% -8.03% 31.51% 5.55%
Merck & Co. Inc. -2.90% -15.70% -0.65% -12.97%
Pfizer Inc. 19.85% -9.34% 12.36% 4.12%
Regeneron Pharmaceuticals Inc. 25.36% 20.14% 33.15% 26.37%
Vertex Pharmaceuticals Inc. 42.22% 110.08% -29.69% -17.29%
Zoetis Inc. 4.03% 29.08% -1.25% 8.66%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 17.59% -10.97% 8.49% -1.55%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 12.75% -2.07% 8.07% 0.80%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 37,27514,384 = 22,891

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 22,89118,767 = 4,124

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 4,124 ÷ [(22,891 + 18,767) ÷ 2] = 19.80%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Gilead Sciences Inc. improved earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Gilead Sciences Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Gilead 5,386  5,455  4,628  13,501  18,108 
Less: Net cash provided by operating activities 9,144  8,400  11,898  16,669  20,329 
Less: Net cash (used in) provided by investing activities (7,817) 14,355  (16,069) (11,985) (12,475)
Cash-flow-statement-based aggregate accruals 4,059  (17,300) 8,799  8,817  10,254 
Financial Ratio
Cash-flow-statement-based accruals ratio1 19.49% -73.15% 28.23% 29.15%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -1.39% -5.39% 12.34% -6.46%
AbbVie Inc. -28.46% -23.85% -12.92% 16.02%
Allergan PLC -11.92% -15.00% -9.44% -10.08%
Amgen Inc. -29.37% -95.70% -22.85% 22.06%
Biogen Inc. -10.98% 1.91% 6.65% 12.70%
Bristol-Myers Squibb Co. 10.75% -1.14% -28.29% 0.76%
Eli Lilly & Co. 74.20% -25.54% -11.43% 5.63%
Illumina Inc. -33.57% 65.79% 3.10% 16.01%
Johnson & Johnson -3.04% -5.08% -7.40% 4.68%
Merck & Co. Inc. -2.28% -19.26% -13.29% -5.97%
Pfizer Inc. 7.93% -10.12% 10.69% -1.06%
Regeneron Pharmaceuticals Inc. 22.48% 28.32% 19.22% 13.64%
Vertex Pharmaceuticals Inc. 35.87% 86.04% -22.78% -57.04%
Zoetis Inc. 2.95% 31.33% -4.07% 6.41%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 0.46% -16.12% -2.48% 1.99%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 2.26% -7.01% -0.36% 3.57%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 4,059 ÷ [(22,891 + 18,767) ÷ 2] = 19.49%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Gilead Sciences Inc. improved earnings quality from 2018 to 2019.