Gilead Sciences Inc. (NASDAQ:GILD)

Asset Turnover

The reported total asset turnover demonstrated a steady improvement over the five-year period, increasing from 0.36 in 2020 to 0.48 in 2024. The adjusted total asset turnover followed a similar trend, rising from 0.36 to 0.50. This suggests an enhanced efficiency in utilizing assets to generate revenue over time.

Liquidity

The reported current ratio showed some fluctuations but overall improved, starting at 1.40 in 2020, dipping slightly to around 1.27-1.29 in 2021-2022, and then increasing to 1.60 by 2024. Adjusted current ratio values mirrored this pattern. This indicates a strengthening liquidity position towards the end of the reviewed period, suggesting better short-term financial stability.

Leverage – Debt to Equity and Debt to Capital

The reported debt to equity ratio declined from 1.73 in 2020 to 1.09 in 2023, indicating a reduction in reliance on debt relative to equity; however, it rose again to 1.38 in 2024. The adjusted debt to equity ratio reflected a similar pattern but showed a more pronounced increase in 2024, reaching 1.55. The reported debt to capital ratio decreased from 0.63 to 0.52 by 2023 but increased again to 0.58 in 2024, while adjusted values exhibited a comparable trend. This implies a cautious use of leverage with some increased debt levels in the final year reviewed.

Financial Leverage

Reported financial leverage steadily declined from 3.76 in 2020 to 2.72 in 2023, suggesting a reduced degree of leverage, but rose again to 3.05 in 2024. Adjusted financial leverage followed a similar trajectory, showing a decrease until 2023 before increasing to 3.21 in 2024. This pattern aligns with the movements observed in debt ratios, reflecting moderate fluctuation in the company's capital structure.

Profitability Margins

The reported net profit margin exhibited considerable volatility, rising sharply from 0.51% in 2020 to a high of 23.05% in 2021, then declining to 1.68% in 2024. Adjusted net profit margins were generally lower and also volatile, peaking at 23.09% in 2021 but dropping sharply to -4.41% by 2024. These fluctuations indicate varying profitability dynamics, possibly impacted by one-time items or operational changes.

Return on Equity (ROE)

Reported ROE followed a similar trend to net profit margin, increasing from 0.68% in 2020 to 29.55% in 2021, then declining to 2.48% in 2024. Adjusted ROE showed less pronounced highs and lows, peaking at 25.84% in 2021 and turning negative to -7.15% in 2024. This suggests that shareholder returns significantly improved in 2021 but deteriorated by the end of the period under review.

Return on Assets (ROA)

There was a steady rise in reported ROA from 0.18% in 2020 to 9.12% in 2023, before a steep decline to 0.81% in 2024. Adjusted ROA experienced less volatile progress, increasing to 7.62% in 2023, then falling to -2.23% in 2024. These trends imply that asset profitability improved through 2023 but sharply worsened afterwards.

The financial data reflects varying trends in sales performance, asset management, and operational efficiency over the five-year period.

Product Sales

Product sales have generally shown a positive trend with an increase from US$24,355 million in 2020 to US$28,610 million in 2024. Although the growth decelerated slightly between 2021 and 2023, the final year exhibits a notable rise, indicating a recovery or expansion in revenue generation.

Total Assets

Total assets have decreased consistently from US$68,407 million in 2020 to US$58,995 million in 2024. This decline suggests a reduction in asset holdings which could be due to asset disposals, depreciation, or strategic downsizing over the period.

Adjusted Total Assets

The adjusted total assets closely mirror the pattern of total assets, falling from US$67,149 million in 2020 to US$56,669 million in 2024. The slight difference between total and adjusted assets indicates minor adjustments but overall confirms the trend of decreasing asset base.

Reported Total Asset Turnover

The reported total asset turnover ratio improved steadily from 0.36 in 2020 to 0.48 in 2024. This upward trend signifies enhanced efficiency in using assets to generate sales, which, coupled with declining asset levels and rising sales, reflects improved operational performance.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio increased from 0.36 in 2020 to 0.50 in 2024, slightly higher than the reported ratio. This improvement further supports the narrative of better asset utilization over time, indicating that the company is driving more revenue per unit of adjusted asset.

Overall, the data reveals a strategic tightening of the asset base alongside increasing sales and improved asset turnover ratios. This suggests a focus on efficiency and possibly more selective investment or asset management policies resulting in enhanced operational productivity.

The financial data reveals several notable trends over the five-year period ending December 31, 2024, related to liquidity and working capital management.

Current Assets

Current assets exhibited a fluctuating but generally upward trend, starting at $15,996 million in 2020, decreasing to $14,443 million by the end of 2022, and then rising significantly to $19,173 million by the close of 2024. This indicates an overall growth in assets expected to be converted to cash or consumed within a year, reflecting possibly increased inventory, receivables, or cash balances in recent years.

Current Liabilities

Current liabilities remained relatively stable throughout the period, starting at $11,397 million in 2020 and showing minor fluctuations, reaching $12,004 million in 2024. The slight increase suggests modest growth in short-term obligations or payables but does not significantly outpace asset growth.

Reported Current Ratio

The reported current ratio began at 1.4 in 2020, declined to its lowest point of 1.27 in 2021, then recovered gradually to 1.6 by 2024. This improvement in the current ratio indicates strengthening liquidity, with assets more comfortably covering current liabilities over time.

Adjusted Current Assets and Adjusted Current Ratio

The adjusted current assets mirror the reported current assets closely, with slight differences in values, starting at $16,040 million in 2020 and rising to $19,225 million in 2024. Consequently, the adjusted current ratio follows the same pattern as the reported ratio, moving from 1.41 in 2020 to 1.6 in 2024. These adjusted figures support the conclusion of enhanced short-term financial stability.

Overall, the data depicts a recovery from a dip in liquidity around 2021, followed by progressive strengthening through 2024. The company's ability to cover its short-term liabilities with current assets has improved, which could reduce liquidity risk and indicate better operational efficiency or cash management in recent years.

The financial data reveals several notable trends and shifts in the company’s capital structure and leverage over the five-year period analyzed.

Total Debt

Total debt decreased steadily from 31,402 million USD at the end of 2020 to 24,987 million USD by the end of 2023, indicating a gradual reduction in debt levels. However, there was a reversal of this trend in 2024, with total debt increasing to 26,711 million USD.

Total Stockholders’ Equity

Stockholders’ equity increased from 18,202 million USD in 2020 to a peak of 22,833 million USD in 2023, suggesting growth in shareholders’ value over this period. In 2024, equity declined notably to 19,330 million USD, indicating a possible reduction in net assets or retained earnings.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined from 1.73 in 2020 to its lowest point at 1.09 in 2023, reflecting reduced leverage and potentially a stronger equity base. However, this ratio rose to 1.38 in 2024, signaling increased leverage compared to the prior year.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, decreasing from 32,117 million USD in 2020 to 25,658 million USD in 2023 before rising to 27,322 million USD in 2024. This adjustment provides a slightly higher measure of debt but mirrors the trend of initial reduction followed by an uptick.

Adjusted Total Stockholders’ Equity

Adjusted equity increased from 20,877 million USD in 2020 to 23,197 million USD in 2023, then dropped markedly to 17,644 million USD in 2024. The reduction in adjusted equity in 2024 is more pronounced compared to the reported equity decline, indicating possible adjustments affecting equity valuation.

Adjusted Debt to Equity Ratio

This ratio decreased from 1.54 in 2020 to around 1.11 in 2023, corroborating the pattern of diminishing leverage and stronger equity throughout these years. The ratio then surged to 1.55 in 2024, surpassing the initial leverage level seen in 2020 and signaling a sharp increase in financial risk relative to equity.

Overall, the company demonstrated a pattern of gradually improving leverage and equity strength through 2023. However, the reversal in 2024, characterized by increasing debt levels and declining equity, resulted in higher leverage ratios and potentially increased financial risk. This shift warrants further investigation into the underlying causes, such as operational performance, financing activities, or extraordinary items affecting equity during 2024.

Total Debt

The total debt shows a decreasing trend from 31,402 million US dollars in 2020 to 24,987 million US dollars in 2023, followed by a slight increase to 26,711 million US dollars in 2024. This indicates a general reduction in debt levels over the four-year period, with a minor reversal in the final year.

Total Capital

Total capital experienced a gradual decline from 49,604 million US dollars in 2020 to 46,041 million US dollars in 2024. There was a minor increase in 2023 to 47,820 million US dollars, but the overall trajectory is downward, suggesting a contraction in the company's capital base.

Reported Debt to Capital Ratio

This ratio decreased steadily from 0.63 in 2020 to 0.52 in 2023, implying improved leverage and reduced reliance on debt to finance capital. However, it rose again to 0.58 in 2024, indicating a partial reversal in debt management or changes in capital structure.

Adjusted Total Debt

Adjusted total debt mirrors the trend in total debt, declining from 32,117 million US dollars in 2020 to 25,658 million US dollars in 2023, with a subsequent increase to 27,322 million US dollars in 2024. This consistency reinforces the observation of debt reduction followed by a rise in the final year.

Adjusted Total Capital

The adjusted total capital declines from 52,994 million US dollars in 2020 to 44,966 million US dollars in 2024, showing a more pronounced decrease compared to reported total capital. The decline reflects potential revaluation or adjustments influencing the total capital base negatively over time.

Adjusted Debt to Capital Ratio

This ratio declines from 0.61 in 2020 to a stable 0.53 between 2021 and 2023, before rising to 0.61 in 2024. The initial decline indicates a reduction in adjusted leverage, while the 2024 increase signals renewed higher leverage risks or shifts in capital adjustments.

The data reveals several notable trends in the company's financial position over the five-year period.

Total assets

There is a consistent decline in total assets from US$68,407 million at the end of 2020 to US$58,995 million at the end of 2024. This downward trend suggests a contraction in asset base by approximately 13.7% over five years.

Total Gilead stockholders’ equity

Stockholders' equity increased from US$18,202 million in 2020 to a peak of US$22,833 million in 2023, but then reversed to US$19,330 million in 2024. This fluctuation indicates some volatility, with growth followed by a decline in the latest year.

Reported financial leverage

The reported financial leverage ratio steadily decreased from 3.76 in 2020 to 2.72 in 2023, reflecting a reduction in leverage or improved equity relative to debt. However, there was an uptick to 3.05 in 2024, indicating a moderate increase in leverage again.

Adjusted total assets

Adjusted total assets follow a similar pattern to the reported total assets, decreasing from US$67,149 million in 2020 to US$56,669 million in 2024. The consistent decline here aligns with the overall reduction in asset size, supporting a downward trend in assets after adjustments.

Adjusted total stockholders’ equity

Adjusted equity rose markedly from US$20,877 million in 2020 to US$24,128 million in 2021 but then declined steadily to US$17,644 million by 2024. This contrasts with the initial increase seen in reported equity, suggesting that adjustments had a material impact on the equity figure, revealing more pronounced weakening in the latter years.

Adjusted financial leverage

The adjusted financial leverage ratio decreased from 3.22 to 2.63 between 2020 and 2023, a trend coherent with reported leverage, indicating reduced leverage or improved capital structure. The sharp increase to 3.21 in 2024 suggests deteriorating financial stability or increased reliance on debt after a previous period of deleveraging.

In summary, there is a clear contraction in total and adjusted assets over the period, accompanied by volatility in equity, which initially improved but declined in the most recent period. The financial leverage ratios generally decreased for several years, pointing to deleveraging, before increasing again in 2024, indicating shifting capital structure dynamics. Adjusted figures show more pronounced changes than reported figures, implying the adjustments reveal a less favorable financial position in later years.

The financial data over the examined periods reveal notable fluctuations and trends in profitability and sales performance.

Net Income Attributable to Gilead

The net income experienced a substantial increase from 123 million US dollars at the end of 2020 to a peak of 6,225 million US dollars in 2021. This was followed by a decrease over the next two years, reaching 4,592 million in 2022 and 5,665 million in 2023, before sharply declining to 480 million in 2024. This pattern suggests a highly volatile net income with a dramatic drop in the final year.

Product Sales

Product sales demonstrated a generally positive trajectory with some fluctuations. Sales increased from 24,355 million US dollars in 2020 to 27,008 million in 2021, then slightly decreased to 26,982 million in 2022 and 26,934 million in 2023, before rising again to 28,610 million in 2024. This indicates overall growth in product sales over the time horizon, with minor temporary declines.

Reported Net Profit Margin

The reported net profit margin followed a highly irregular trend. Starting at a very low margin of 0.51% in 2020, it surged significantly to 23.05% in 2021, then fell to 17.02% in 2022, recovering to 21.03% in 2023. However, it dropped sharply to 1.68% in 2024. This volatility reflects considerable variability in profitability relative to sales over the years.

Adjusted Net Income

Adjusted net income showed a challenging pattern. It began with a negative figure of -275 million US dollars in 2020, increased dramatically to 6,235 million in 2021, then decreased sharply to 2,938 million in 2022 and rebounded to 4,645 million in 2023. In 2024, it turned negative again, registering -1,262 million. This indicates significant fluctuations in earnings after adjustments, including two years with losses.

Adjusted Net Profit Margin

The adjusted net profit margin mirrored the adjusted net income in its volatility. Starting at -1.13% in 2020, it climbed sharply to 23.09% in 2021, decreased to 10.89% in 2022, then increased to 17.25% in 2023 before falling into negative territory at -4.41% in 2024. This suggests fluctuations in core profitability margins, with a return to losses in the most recent period.

Overall, the data indicate significant earnings volatility with strong performance peaks in 2021, followed by declining and inconsistent profits through 2024 despite generally stable or growing product sales. The decline in both reported and adjusted profitability in 2024 highlights potential challenges in maintaining profitability, warranting further detailed investigation into underlying causes.

The financial data exhibit notable fluctuations in profitability and equity metrics over the five-year period. Net income attributable to the company increased dramatically from 123 million USD in 2020 to a peak of 6,225 million USD in 2021, followed by a subsequent decline in the following years, dropping sharply to 480 million USD by 2024. This pronounced volatility indicates significant variability in earnings performance.

Total stockholders’ equity mirrored a generally upward trend from 18,202 million USD in 2020, reaching its highest level of 22,833 million USD in 2023 before declining to 19,330 million USD in 2024. The increase suggests reinvestment or retained earnings inflating equity until the decline observed in the latest period.

Reported Return on Equity (ROE) considerably improved from a marginal 0.68% in 2020 to a peak of 29.55% in 2021. However, while ROE remained elevated through 2023 at nearly 25%, it sharply contracted to 2.48% in 2024, reflecting diminished efficiency in generating profits from equity amidst the declining net income.

Adjusted financial figures reveal comparable trends but with differing magnitudes. Adjusted net income shows a negative value (-275 million USD) in 2020, improving drastically to 6,235 million USD in 2021, then decreasing steadily to a negative result (-1,262 million USD) in 2024. Adjusted total stockholders’ equity increased from 20,877 million USD in 2020 to a peak of 23,197 million USD in 2023, then fell to 17,644 million USD in 2024, consistent with the reported equity figures but with lower absolute values in the final period.

Adjusted ROE underwent a similar trajectory, starting negative (-1.32%) in 2020, surging to 25.84% in 2021, then declining progressively to a negative return of -7.15% in 2024. These adjusted metrics underscore increased volatility and pronounced financial challenges by 2024, including negative returns and declines in adjusted equity.

Profitability trends

Earnings peaks in 2021 with subsequent declines to low or negative levels by 2024 suggest episodic factors influencing net income.

Equity trends

Steady equity growth through 2023, followed by reductions in 2024, may indicate capital withdrawals, asset impairments, or lower retained earnings.

Return on Equity analysis

ROE demonstrates strong performance in mid-period years but deteriorates sharply in the most recent year, signaling reduced profitability efficiency.

Adjusted metrics significance

Adjusted figures mirror reported trends but highlight underlying operational volatility and challenges more starkly, especially in 2024.

The financial data reveals several notable trends in profitability and asset utilization over the five-year period analyzed.

Net Income Attributable to Gilead

Net income exhibited significant volatility. Starting from a modest gain of 123 million USD in 2020, it surged dramatically to 6,225 million USD in 2021. Subsequently, it decreased to 4,592 million USD in 2022, followed by a moderate increase to 5,665 million USD in 2023, and then sharply declined to 480 million USD in 2024. The fluctuations suggest periods of both strong earnings performance and considerable contraction.

Total Assets

Total assets demonstrated a general downward trend, declining consistently from 68,407 million USD in 2020 to 58,995 million USD in 2024. This reduction in asset base may reflect asset disposals, depreciation, or strategic realignments impacting the company’s asset portfolio.

Reported Return on Assets (ROA)

The reported ROA mirrored the income trends closely. Initially low at 0.18% in 2020, it rose sharply to 9.16% in 2021, indicating improved asset efficiency. This was followed by a decrease to 7.27% in 2022, a rebound to 9.12% in 2023, and a significant drop to 0.81% in 2024. The ROA pattern suggests variability in how effectively the company utilized its assets to generate net income over time, with 2024 marking a pronounced decline in returns.

Adjusted Net Income

Adjusted net income, which likely accounts for non-recurring items and other adjustments, showed more volatility. It started with a negative result of -275 million USD in 2020, then surged to 6,235 million USD in 2021. This was followed by decreases to 2,938 million USD in 2022, and a rise again to 4,645 million USD in 2023, before plunging to -1,262 million USD in 2024. The swings indicate fluctuations in underlying operational profitability when excluding certain items.

Adjusted Total Assets

Adjusted total assets mirrored the downward trend seen in reported total assets, decreasing consistently from 67,149 million USD in 2020 to 56,669 million USD in 2024. The decline in both reported and adjusted assets signals a steady contraction or optimization of asset holdings over the period.

Adjusted Return on Assets (ROA)

Adjusted ROA exhibited substantial variability. From a negative return of -0.41% in 2020, it increased sharply to 9.35% in 2021 but then fell to 4.74% in 2022. It rose again to 7.62% in 2023 before declining to -2.23% in 2024. The negative adjusted ROA in the initial and final years indicates periods of operational challenges or losses after adjustments, while the middle years reflect more effective asset use.

Overall, the data indicates that the company experienced strongly oscillating profitability with a peak around 2021, followed by declining net income and returns on assets towards 2024. Concurrently, there has been a consistent decrease in asset base over these years, which, coupled with fluctuating returns, may point to strategic restructuring or operational difficulties in the latter part of the timeframe.