Operating Profit Margin
since 2005
Calculation
Gilead Sciences Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Product sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 5.81% | = | 100 | × | 1,662) | ÷ | 28,610) |
| Dec 31, 2023 | 28.24% | = | 100 | × | 7,605) | ÷ | 26,934) |
| Dec 31, 2022 | 27.17% | = | 100 | × | 7,330) | ÷ | 26,982) |
| Dec 31, 2021 | 36.72% | = | 100 | × | 9,918) | ÷ | 27,008) |
| Dec 31, 2020 | 16.72% | = | 100 | × | 4,071) | ÷ | 24,355) |
| Dec 31, 2019 | 19.38% | = | 100 | × | 4,287) | ÷ | 22,119) |
| Dec 31, 2018 | 37.83% | = | 100 | × | 8,200) | ÷ | 21,677) |
| Dec 31, 2017 | 55.04% | = | 100 | × | 14,124) | ÷ | 25,662) |
| Dec 31, 2016 | 58.87% | = | 100 | × | 17,633) | ÷ | 29,953) |
| Dec 31, 2015 | 69.03% | = | 100 | × | 22,193) | ÷ | 32,151) |
| Dec 31, 2014 | 62.37% | = | 100 | × | 15,265) | ÷ | 24,474) |
| Dec 31, 2013 | 41.87% | = | 100 | × | 4,524) | ÷ | 10,804) |
| Dec 31, 2012 | 42.67% | = | 100 | × | 4,010) | ÷ | 9,398) |
| Dec 31, 2011 | 46.77% | = | 100 | × | 3,790) | ÷ | 8,102) |
| Dec 31, 2010 | 53.62% | = | 100 | × | 3,962) | ÷ | 7,390) |
| Dec 31, 2009 | 54.55% | = | 100 | × | 3,529) | ÷ | 6,469) |
| Dec 31, 2008 | 52.68% | = | 100 | × | 2,679) | ÷ | 5,085) |
| Dec 31, 2007 | 57.98% | = | 100 | × | 2,165) | ÷ | 3,733) |
| Dec 31, 2006 | -29.32% | = | 100 | × | (759) | ÷ | 2,588) |
| Dec 31, 2005 | 61.41% | = | 100 | × | 1,111) | ÷ | 1,809) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
- Operating Income (Loss) Trends
- The operating income demonstrated significant volatility over the analyzed period. In 2005, the company recorded an operating income of $1,111 million, followed by a notable loss of $759 million in 2006. Subsequently, there was a strong recovery, with operating income increasing to $2,165 million in 2007 and continuing an upward trend to reach a peak of $22,193 million in 2014. After 2014, operating income generally declined, with some intermittent fluctuations, reaching $4,071 million by 2020. A moderate rebound occurred in 2021, with operating income increasing to $9,918 million, but this was followed by a decline to $1,662 million in 2024. The overall pattern reflects periods of rapid growth and contraction, indicating variability in operational performance.
- Product Sales Trends
- Product sales exhibited a consistent upward trajectory throughout the period. Beginning at $1,809 million in 2005, sales rose steadily to $10,804 million by 2013. A substantial increase was observed between 2013 and 2015, with product sales reaching $32,151 million. Following this surge, sales declined to $21,119 million in 2018 but resumed growth afterward, ending at $28,610 million by 2024. This pattern suggests sustained expansion in product revenue, albeit with some fluctuations that may be attributed to market dynamics or portfolio changes.
- Operating Profit Margin Trends
- The operating profit margin showed considerable variation over the years. Starting at a high of 61.41% in 2005, it dropped sharply to -29.32% in 2006, indicating an operating loss relative to sales. From 2007 onward, margins stabilized and remained positive, generally in the range of 40% to almost 70% until 2014, reflecting strong profitability. Post-2014, there was a marked decline in margins, falling to 16.72% in 2020 and reaching a low of 5.81% in 2024. This decline in profitability suggests increased costs, lower pricing power, or other operational challenges impacting efficiency.
- Overall Financial Performance Insights
- The analysis reveals a company that experienced rapid growth in product sales and operating income during the early to mid-2010s, accompanied by robust profit margins. However, from 2014 onwards, both operating income and profit margins faced a downward trend, despite product sales mostly maintaining an upward or stable trajectory. This divergence could indicate rising operational costs or strategic investments not immediately reflected in income metrics. Recent years show signs of operating pressure with diminished profitability margins, warranting attention to cost management and efficiency improvements to support continued revenue growth.
Comparison to Competitors
Gilead Sciences Inc., operating profit margin, long-term trends, comparison to competitors
| Gilead Sciences Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 5.81% | 16.22% | 22.66% | 20.37% | 28.10% | 17.11% | -2.11% |
| Dec 31, 2023 | 28.24% | 23.49% | 29.35% | 21.77% | 30.85% | 16.00% | 38.83% |
| Dec 31, 2022 | 27.17% | 31.21% | 38.57% | 27.61% | 38.93% | 18.69% | 48.23% |
| Dec 31, 2021 | 36.72% | 31.89% | 31.44% | 25.35% | 55.67% | 25.57% | 36.73% |
| Dec 31, 2020 | 16.72% | 24.81% | 37.70% | 18.99% | 42.09% | 24.19% | 46.03% |
| Dec 31, 2019 | 19.38% | 39.03% | 43.57% | 18.25% | 28.10% | 17.99% | 28.77% |
| Dec 31, 2018 | 37.83% | 19.49% | 45.55% | 17.11% | 37.77% | 15.53% | 20.84% |
| Dec 31, 2017 | 55.04% | 33.99% | 45.76% | 16.48% | 35.41% | 14.19% | 4.95% |
| Dec 31, 2016 | 58.87% | 36.60% | 44.74% | 16.29% | 27.38% | 13.40% | 0.58% |
| Dec 31, 2015 | 69.03% | 32.97% | 40.44% | 16.87% | 30.51% | 13.77% | -45.23% |
| Dec 31, 2014 | 62.37% | 17.09% | 32.03% | 17.23% | 29.74% | 14.82% | -119.30% |
| Dec 31, 2013 | 41.87% | 30.14% | 32.25% | 17.13% | 36.11% | 12.30% | -74.54% |
| Dec 31, 2012 | 42.67% | 31.65% | 33.52% | 17.33% | 33.20% | 11.85% | 0.15% |
| Dec 31, 2011 | 46.77% | — | 28.19% | 16.27% | -46.02% | 10.62% | 8.07% |
| Dec 31, 2010 | 53.62% | — | 37.82% | 16.41% | -21.23% | 11.72% | -485.51% |
| Dec 31, 2009 | 54.55% | — | 38.37% | 13.79% | -19.54% | 10.38% | -602.63% |
| Dec 31, 2008 | 52.68% | — | 35.50% | 14.72% | -37.67% | 11.71% | -263.65% |
| Dec 31, 2007 | 57.98% | — | 27.81% | 15.79% | -91.55% | 10.00% | -210.94% |
| Dec 31, 2006 | -29.32% | — | 27.71% | 15.82% | -169.68% | 6.38% | -105.86% |
| Dec 31, 2005 | 61.41% | — | 40.33% | 15.84% | -187.97% | 10.01% | -93.15% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).