Gilead Sciences Inc. (NASDAQ:GILD)

Current Assets

The current assets demonstrated a fluctuating yet generally upward trend over the five-year period. Starting at 15,996 million USD in 2020, there was a decline in 2021 to 14,772 million USD, which slightly continued into 2022 with a value of 14,443 million USD. However, from 2023 onwards, current assets increased notably, reaching 16,085 million USD and further rising to 19,173 million USD by the end of 2024. This suggests a recovery and strengthening liquidity position after a period of decline.

Adjusted Current Assets

Adjusted current assets followed a pattern comparable to that of current assets. Initially at 16,040 million USD in 2020, they decreased to 14,819 million USD in 2021 and continued this marginal downward trajectory to 14,498 million USD in 2022. The adjusted current assets then rose significantly in the subsequent years, climbing to 16,141 million USD in 2023 and further increasing to 19,225 million USD in 2024. The close alignment with the trend in current assets confirms consistency in adjustments and reinforces the overall improvement in short-term financial resources toward the latest period.

The financial data reveals a consistent downward trend in total assets over the five-year period from December 31, 2020, to December 31, 2024. The total assets decreased from 68,407 million US dollars at the end of 2020 to 58,995 million US dollars by the end of 2024. This represents an approximate decline of 13.7% over the period, indicating a reduction in the company's asset base.

Similarly, the adjusted total assets follow a comparable pattern of decline, falling from 67,149 million US dollars in 2020 to 56,669 million US dollars in 2024. This decrease corresponds to roughly a 15.6% reduction, which is slightly more pronounced than the decline in total assets. The consistent decrease in adjusted total assets suggests a reduction in assets after certain adjustments, possibly reflecting changes in asset valuations or exclusions of specific asset categories over time.

The gradual decrease in both total and adjusted total assets over consecutive years may imply strategic asset divestitures, disposals, or impairment. It also suggests the company might be focusing on streamlining its asset base or facing challenges in asset growth. Without additional financial metrics or operational data, it is difficult to ascertain the precise reasons behind the trend; however, the continual shrinkage in asset size is a notable development warranting closer attention.

Total liabilities

Over the five-year period, total liabilities exhibited a consistent downward trend from US$50,186 million in 2020 to US$39,749 million in 2024. This represents an overall reduction of approximately 20.8%. The decline was steady year-over-year, with the most significant year-on-year decrease occurring between 2021 and 2022, when liabilities dropped by US$3,926 million. The reduction in total liabilities indicates a potential strategic focus on debt repayment or liability management.

Adjusted total liabilities

Adjusted total liabilities mirrored the trend in total liabilities, declining from US$46,272 million in 2020 to US$39,025 million in 2024, marking a reduction of about 15.7%. The adjusted liabilities showed a similar steady decline year-over-year, with a notable decrease between 2020 and 2021 of US$3,740 million. The adjusted figures remain consistently lower than total liabilities by a differential that narrows over time, suggesting adjustments that could reflect accounting treatments or specific liability exclusions becoming less significant.

Total Gilead stockholders’ equity

The total stockholders’ equity exhibited a general upward trend from 2020 to 2023, increasing from 18,202 million US dollars in 2020 to a peak of 22,833 million US dollars in 2023. However, this growth reversed in 2024, with a significant decline to 19,330 million US dollars, indicating a decrease of approximately 15.3% from the previous year.

Adjusted total stockholders’ equity

The adjusted total stockholders’ equity also showed an initial increase from 20,877 million US dollars in 2020 to a high of 24,128 million US dollars in 2021. Subsequently, it experienced a decreasing trend over the next three years, dropping to 22,696 million in 2022, slightly rising to 23,197 million in 2023, and then falling markedly to 17,644 million in 2024. The decline from 2023 to 2024 was particularly pronounced, amounting to a reduction of around 23.9%.

Overall insights

Both total and adjusted stockholders’ equity measures suggest growth through the initial years up to around 2021-2023, followed by a notable contraction in 2024. The decrease in 2024 appears substantial, especially in the adjusted equity figures, signaling possible changes in underlying equity components or valuation adjustments. The disparity between total and adjusted equity in terms of magnitude and year-over-year movement highlights the relevance of adjustments in understanding the company's equity position. This pattern may reflect shifts in financial strategy, asset valuation, or external financial pressures during the most recent period.

The data reveals notable fluctuations in debt, equity, and capital figures over the examined period. An overall trend of declining total reported debt is observed from the end of 2020 through 2023, dropping from 31,402 million US dollars to a low of 24,987 million US dollars. However, in 2024, there is a reversal as total reported debt rises again to 26,711 million US dollars. This indicates a degree of volatility in the company's debt management strategy or possibly external financing needs in the most recent year.

Total reported stockholders’ equity shows an increasing pattern from 2020 through 2023, growing from 18,202 million US dollars to a peak of 22,833 million US dollars. Nevertheless, in 2024, equity declines significantly to 19,330 million US dollars, which may suggest events such as losses, dividends, or changes in accounting policies affecting shareholders' equity adversely.

Total reported capital, which is the sum of debt and equity, decreases steadily from 49,604 million US dollars in 2020 to 46,470 million US dollars by the end of 2022. A slight recovery is evident in 2023, rising to 47,820 million US dollars, followed by another decrease in 2024 to 46,041 million US dollars. This pattern indicates moderate contraction overall, with minor recovery attempts.

When examining adjusted measures, adjusted total debt follows a similar declining trend from 32,117 million US dollars in 2020 to 25,658 million US dollars in 2023, before increasing again to 27,322 million US dollars in 2024. This mirrors the reported debt figures and confirms the observed volatility.

Adjusted total stockholders’ equity increases from 20,877 million US dollars in 2020 to 24,128 million US dollars in 2021 but then falls somewhat by 2022 to 22,696 million US dollars. It recovers slightly to 23,197 million US dollars in 2023 but then experiences a pronounced drop to 17,644 million US dollars in 2024. This significant reduction in adjusted equity suggests potential adjustments or underlying losses influencing the financial position in the latest year.

Adjusted total capital demonstrates a declining trajectory from 52,994 million US dollars in 2020 to 48,504 million US dollars in 2022, with minimal improvement in 2023 to 48,855 million US dollars, followed by a sharper decrease in 2024 to 44,966 million US dollars. This indicates a contraction in the total adjusted financial base in the recent years, especially notable in 2024.

Summary of Trends

- Total and adjusted debt generally declined through 2023, then increased in 2024.

- Stockholders’ equity, both reported and adjusted, grew until 2023 then dropped significantly in 2024.

- Total and adjusted capital exhibited gradual declines with minor recovery in 2023, followed by sharper decreases in 2024.

- The increasing debt and decreasing equity in 2024 suggest a leveraged position and potential financial challenges.

Net Income Attributable to Gilead

The net income attributable to the entity exhibits significant fluctuations over the assessed periods. Starting with a low figure in 2020, there is a remarkable surge in 2021, reaching a peak of 6,225 million US dollars. This peak is followed by a decline in 2022 to 4,592 million US dollars, then a moderate recovery in 2023 to 5,665 million US dollars. However, 2024 sees again a sharp decrease to 480 million US dollars. This pattern indicates a period of high volatility in net earnings, with substantial gains in the middle years followed by a notable reduction by the end of the timeline.

Adjusted Net Income

The adjusted net income demonstrates an even more volatile trajectory compared to the reported net income. Beginning with a negative figure in 2020, it quickly rises to a peak of 6,235 million US dollars in 2021, closely mirroring the peak in net income. Subsequently, there is a steep decline to 2,938 million US dollars in 2022, a partial rebound to 4,645 million US dollars in 2023, and then a drastic drop to -1,262 million US dollars in 2024, indicating a substantial adjusted loss. This swings between profitable and loss periods suggest significant adjustments impacting reported earnings, reflecting extraordinary items or accounting adjustments that have sharply affected profitability.

Summary of Trends and Insights

Both net income and adjusted net income reflect pronounced variability year over year. The peak in 2021 suggests an exceptional period of profitability, which is not sustained in subsequent years. The downward trend in 2024, particularly the negative adjusted net income, raises questions about extraordinary charges or operational challenges during that period. The divergence between net and adjusted results in 2024 is particularly noteworthy, suggesting that the adjustments had a material negative impact on financial performance. Overall, the data highlights a volatile earnings pattern with considerable adjustments impacting profitability.