Gilead Sciences Inc. (NASDAQ:GILD)

Current assets exhibited a fluctuating pattern over the five-year period. Initially, a slight decrease was observed from 2021 to 2022, followed by increases in subsequent years. Adjusted current assets mirrored this trend, demonstrating similar fluctuations.

Overall Trend

From 2021 to 2025, current assets increased overall, moving from US$14,772 million to US$18,342 million. The largest single-year increase occurred between 2022 and 2023, with an addition of US$1,642 million. A moderate decrease was noted between 2024 and 2025.

Year-over-Year Changes

A decrease of US$329 million in current assets was recorded from 2021 to 2022. This was followed by a substantial increase of US$1,642 million from 2022 to 2023. The period from 2023 to 2024 saw the most significant increase, amounting to US$3,088 million. Finally, a decrease of US$831 million was observed from 2024 to 2025.

Adjusted Current Assets vs. Current Assets

The values for adjusted current assets consistently exceeded those of current assets across all reported years. The difference between the two values remained relatively stable, generally ranging between US$47 million and US$52 million annually. This suggests a consistent application of adjustments to the reported current asset figures.

The fluctuations in current assets may warrant further investigation to understand the underlying drivers, such as changes in cash, accounts receivable, or inventory levels. The consistent difference between current and adjusted current assets indicates the presence of recurring adjustments that impact the reported financial position.

Total assets exhibited a generally declining trend over the five-year period. Beginning at US$67,952 million in 2021, reported total assets decreased to US$63,171 million in 2022, and continued to fall to US$62,125 million in 2023. The decline accelerated in 2024, reaching US$58,995 million, before stabilizing slightly at US$59,023 million in 2025. A similar pattern is observed in adjusted total assets, though the magnitudes of the decreases are slightly smaller.

Overall Trend

Both total assets and adjusted total assets demonstrate a consistent downward trajectory from 2021 through 2024. The 2025 figures suggest a potential stabilization, but remain below levels observed in earlier years. The consistency of the decline across both metrics suggests the changes are not solely attributable to accounting adjustments.

Magnitude of Change

The largest year-over-year decrease in total assets occurred between 2023 and 2024, with a reduction of US$3,130 million. The decrease from 2021 to 2022 was US$4,781 million. Adjusted total assets experienced its largest decrease between 2023 and 2024, falling by US$2,326 million. The difference between the total assets and adjusted total assets remained relatively consistent across the period, ranging from US$1,292 million to US$1,323 million.

Adjustments Impact

The difference between total assets and adjusted total assets indicates the presence of items requiring adjustment. These adjustments consistently reduced the reported total asset value, but the impact remained relatively stable as a percentage of total assets throughout the period. The adjustments represent approximately 1.9% to 2.1% of total assets each year.

The observed decline in both total and adjusted assets warrants further investigation to determine the underlying drivers. Potential causes could include asset sales, write-downs, or changes in accounting policies. The stabilization in 2025, while modest, may indicate a turning point, but continued monitoring is necessary to confirm this trend.

Total liabilities decreased over the five-year period, exhibiting fluctuations before resuming a downward trajectory. Simultaneously, adjusted total liabilities followed a similar pattern, though with differing magnitudes of change. A comparison of the two liability measures reveals consistent adjustments being made to the reported figures.

Overall Trend in Total Liabilities

Total liabilities began at US$46,888 million in 2021 and decreased to US$41,962 million in 2022, representing a decline of approximately 10.5%. A further decrease was observed in 2023, reaching US$39,376 million. An incremental increase occurred in 2024, with total liabilities reported at US$39,749 million. The period concluded with a decrease in 2025, settling at US$36,405 million.

Overall Trend in Adjusted Total Liabilities

Adjusted total liabilities mirrored the trend of total liabilities, starting at US$42,532 million in 2021 and decreasing to US$39,289 million in 2022, a reduction of roughly 7.9%. A continued decline was noted in 2023, reaching US$37,788 million. Similar to total liabilities, adjusted total liabilities increased in 2024 to US$39,025 million before decreasing to US$36,003 million in 2025.

Magnitude of Adjustments

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period. In 2021, the adjustment reduced reported liabilities by approximately US$4,356 million. This difference varied between approximately US$2,673 million and US$3,344 million in subsequent years, indicating a systematic, though not constant, reduction in reported liabilities through adjustments.

Year-over-Year Changes

The largest year-over-year decrease in total liabilities occurred between 2021 and 2022 (10.5%). The largest year-over-year decrease in adjusted total liabilities also occurred between 2021 and 2022 (7.9%). The smallest decrease in both measures occurred between 2024 and 2025. The only year-over-year increase for both measures was between 2023 and 2024.

The consistent adjustments to total liabilities suggest the presence of items that are periodically re-evaluated or reclassified. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the company’s financial position.

Total stockholders’ equity exhibited fluctuations over the five-year period. Initially increasing from 2021 to 2023, it then decreased significantly in 2024 before recovering partially in 2025. Adjusted total stockholders’ equity mirrored this pattern, though the magnitudes of change differed. A comparison of the two equity measures reveals consistent adjustments impacting the reported value.

Overall Trend in Total Stockholders’ Equity

Total stockholders’ equity increased from US$21,069 million in 2021 to US$22,833 million in 2023, representing a cumulative growth of approximately 8.4%. However, a substantial decline occurred in 2024, with equity falling to US$19,330 million. A partial recovery was noted in 2025, bringing the value to US$22,703 million, but still remaining below the 2023 peak.

Overall Trend in Adjusted Total Stockholders’ Equity

Adjusted total stockholders’ equity began at US$24,128 million in 2021, decreased to US$22,696 million in 2022, and then rose to US$23,197 million in 2023. Similar to the trend in total stockholders’ equity, a significant decrease was observed in 2024, with adjusted equity reaching US$17,644 million. A subsequent increase in 2025 resulted in a value of US$21,097 million.

Relationship Between Total and Adjusted Equity

The adjusted total stockholders’ equity consistently differs from the total stockholders’ equity reported. In 2021, the adjusted value was US$3,059 million higher than the reported value. This difference narrowed in 2022 to US$1,446 million, and further to US$964 million in 2023. The gap widened considerably in 2024, with the adjusted value being US$1,686 million lower than the reported value, and then narrowed again in 2025 to US$1,606 million. These adjustments suggest the presence of items impacting the reported equity that are being accounted for in the adjusted figure.

Year-over-Year Changes

The largest year-over-year decrease in total stockholders’ equity occurred between 2023 and 2024, with a decline of approximately 15.3%. The largest year-over-year decrease in adjusted total stockholders’ equity also occurred between 2023 and 2024, with a decline of approximately 23.9%. The largest year-over-year increase in total stockholders’ equity occurred between 2024 and 2025, with a growth of approximately 17.4%. The largest year-over-year increase in adjusted total stockholders’ equity also occurred between 2024 and 2025, with a growth of approximately 19.5%.

The capitalization structure of the entity exhibits several notable trends between 2021 and 2025. Reported total debt generally decreased from 2021 to 2023, increased in 2024, and then decreased again in 2025. Stockholders’ equity showed an initial increase through 2023, followed by a significant decline in 2024, and a partial recovery in 2025. Total reported capital mirrored these movements, resulting in a relatively stable overall capital structure throughout the period, with a dip in 2024.

Debt Trends

Reported total debt decreased from US$26,695 million in 2021 to US$24,987 million in 2023, representing a cumulative reduction of approximately 6.8%. An increase to US$26,711 million occurred in 2024, before decreasing again to US$24,936 million in 2025. Adjusted total debt followed a similar pattern, starting at US$27,285 million in 2021, decreasing to US$25,658 million in 2023, increasing to US$27,322 million in 2024, and then decreasing to US$25,541 million in 2025. The adjusted debt figures are consistently higher than the reported debt figures throughout the period.

Equity Trends

Total Gilead stockholders’ equity increased from US$21,069 million in 2021 to US$22,833 million in 2023, a rise of approximately 8.4%. A substantial decrease was observed in 2024, with equity falling to US$19,330 million, followed by a recovery to US$22,703 million in 2025. Adjusted total stockholders’ equity exhibited a similar trajectory, beginning at US$24,128 million in 2021, peaking at US$23,197 million in 2023, declining sharply to US$17,644 million in 2024, and recovering to US$21,097 million in 2025. The adjusted equity values are consistently higher than the reported equity values.

Capital Structure

Total reported capital decreased from US$47,764 million in 2021 to US$46,041 million in 2024, before increasing to US$47,639 million in 2025. Adjusted total capital followed a similar trend, starting at US$51,413 million in 2021, decreasing to US$44,966 million in 2024, and increasing to US$46,638 million in 2025. The difference between reported and adjusted total capital remained relatively consistent throughout the period, averaging approximately US$3,600 million.

The adjustments to both debt and equity consistently result in higher values than those reported, suggesting the presence of off-balance sheet items or different accounting treatments impacting the reported figures. The most significant shift occurred in 2024, with substantial declines in both reported and adjusted stockholders’ equity and total capital, warranting further investigation into the underlying causes of this change.

Net income attributable to Gilead demonstrates considerable fluctuation over the five-year period. Initial values are strong, followed by a significant decline, a partial recovery, a substantial drop, and then a return to high values. Adjusted net income exhibits even more pronounced volatility, diverging notably from the reported net income in several years.

Overall Trend - Net Income

Net income attributable to Gilead began at US$6,225 million in 2021, decreased to US$4,592 million in 2022, and then increased to US$5,665 million in 2023. A dramatic decrease occurred in 2024, falling to US$480 million, before rebounding sharply to US$8,510 million in 2025.

Overall Trend - Adjusted Net Income

Adjusted net income started at US$6,235 million in 2021, declining substantially to US$2,938 million in 2022. It then rose to US$4,645 million in 2023, but experienced a significant loss in 2024, reporting a negative value of US$-1,262 million. Adjusted net income recovered strongly in 2025, reaching US$8,566 million.

Relationship Between Reported and Adjusted Income

The difference between net income attributable to Gilead and adjusted net income was minimal in 2021 and 2025. However, in 2022, adjusted net income was considerably lower than reported net income. The largest divergence occurred in 2024, where adjusted net income was a loss while reported net income remained positive, albeit significantly reduced. This suggests substantial adjustments were made to reported income in those years.

Volatility

Both net income and adjusted net income demonstrate high levels of volatility. The swings between years are substantial, particularly for adjusted net income, indicating the presence of significant non-recurring items or accounting adjustments impacting the reported results. The year 2024 stands out as a period of particularly poor performance based on adjusted figures.

The substantial differences between reported and adjusted net income, coupled with the overall volatility, suggest that understanding the nature of the adjustments is crucial for a comprehensive assessment of the company’s financial performance.