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

Gilead Sciences Inc. (NASDAQ:GILD)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Gilead Sciences Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.36 0.36 0.34 0.37 0.53
Adjusted 0.36 0.36 0.34 0.36 0.53
Liquidity Ratio
Current Ratio
Reported 1.40 3.10 3.38 2.74 2.22
Adjusted 1.41 3.11 3.38 2.74 2.12
Solvency Ratios
Debt to Equity
Reported 1.73 1.09 1.28 1.64 1.39
Adjusted 1.54 1.20 1.26 1.64 1.47
Debt to Capital
Reported 0.63 0.52 0.56 0.62 0.58
Adjusted 0.61 0.55 0.56 0.62 0.60
Financial Leverage
Reported 3.76 2.74 2.98 3.44 3.02
Adjusted 3.28 2.92 2.91 3.41 3.12
Profitability Ratios
Net Profit Margin
Reported 0.51% 24.35% 25.16% 18.03% 45.07%
Adjusted -1.13% 14.74% 27.47% 17.33% 45.22%
Return on Equity (ROE)
Reported 0.68% 23.91% 25.51% 22.64% 71.48%
Adjusted -1.32% 15.43% 26.98% 21.44% 74.80%
Return on Assets (ROA)
Reported 0.18% 8.74% 8.57% 6.58% 23.70%
Adjusted -0.40% 5.29% 9.28% 6.29% 24.00%

Based on: 10-K (filing date: 2021-02-25), 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Gilead Sciences Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Gilead Sciences Inc.’s adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Gilead Sciences Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Gilead Sciences Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Gilead Sciences Inc.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Gilead Sciences Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Gilead Sciences Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Gilead Sciences Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Product sales 24,355  22,119  21,677  25,662  29,953 
Total assets 68,407  61,627  63,675  70,283  56,977 
Activity Ratio
Total asset turnover1 0.36 0.36 0.34 0.37 0.53
Adjusted
Selected Financial Data (US$ in millions)
Product sales 24,355  22,119  21,677  25,662  29,953 
Adjusted total assets2 68,451  61,667  64,159  70,720  56,442 
Activity Ratio
Adjusted total asset turnover3 0.36 0.36 0.34 0.36 0.53

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Total asset turnover = Product sales ÷ Total assets
= 24,355 ÷ 68,407 = 0.36

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 24,355 ÷ 68,451 = 0.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Gilead Sciences Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 15,996  30,296  35,836  31,823  20,445 
Current liabilities 11,397  9,759  10,605  11,635  9,219 
Liquidity Ratio
Current ratio1 1.40 3.10 3.38 2.74 2.22
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 16,040  30,336  35,836  31,823  19,588 
Current liabilities 11,397  9,759  10,605  11,635  9,219 
Liquidity Ratio
Adjusted current ratio3 1.41 3.11 3.38 2.74 2.12

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,996 ÷ 11,397 = 1.40

2 Adjusted current assets. See details »

3 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 16,040 ÷ 11,397 = 1.41

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Gilead Sciences Inc.’s adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 31,402  24,593  27,322  33,542  26,346 
Total Gilead stockholders’ equity 18,202  22,525  21,387  20,442  18,887 
Solvency Ratio
Debt to equity1 1.73 1.09 1.28 1.64 1.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 32,117  25,318  27,806  33,979  26,668 
Adjusted total stockholders’ equity3 20,877  21,134  22,072  20,748  18,108 
Solvency Ratio
Adjusted debt to equity4 1.54 1.20 1.26 1.64 1.47

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= 31,402 ÷ 18,202 = 1.73

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 32,117 ÷ 20,877 = 1.54

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Gilead Sciences Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 31,402  24,593  27,322  33,542  26,346 
Total capital 49,604  47,118  48,709  53,984  45,233 
Solvency Ratio
Debt to capital1 0.63 0.52 0.56 0.62 0.58
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 32,117  25,318  27,806  33,979  26,668 
Adjusted total capital3 52,994  46,452  49,878  54,727  44,776 
Solvency Ratio
Adjusted debt to capital4 0.61 0.55 0.56 0.62 0.60

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 31,402 ÷ 49,604 = 0.63

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 32,117 ÷ 52,994 = 0.61

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Gilead Sciences Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 68,407  61,627  63,675  70,283  56,977 
Total Gilead stockholders’ equity 18,202  22,525  21,387  20,442  18,887 
Solvency Ratio
Financial leverage1 3.76 2.74 2.98 3.44 3.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 68,451  61,667  64,159  70,720  56,442 
Adjusted total stockholders’ equity3 20,877  21,134  22,072  20,748  18,108 
Solvency Ratio
Adjusted financial leverage4 3.28 2.92 2.91 3.41 3.12

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 68,407 ÷ 18,202 = 3.76

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 68,451 ÷ 20,877 = 3.28

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Gilead Sciences Inc.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 123  5,386  5,455  4,628  13,501 
Product sales 24,355  22,119  21,677  25,662  29,953 
Profitability Ratio
Net profit margin1 0.51% 24.35% 25.16% 18.03% 45.07%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 (275) 3,260  5,954  4,448  13,544 
Product sales 24,355  22,119  21,677  25,662  29,953 
Profitability Ratio
Adjusted net profit margin3 -1.13% 14.74% 27.47% 17.33% 45.22%

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to Gilead ÷ Product sales
= 100 × 123 ÷ 24,355 = 0.51%

2 Adjusted net income. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × -275 ÷ 24,355 = -1.13%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Gilead Sciences Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 123  5,386  5,455  4,628  13,501 
Total Gilead stockholders’ equity 18,202  22,525  21,387  20,442  18,887 
Profitability Ratio
ROE1 0.68% 23.91% 25.51% 22.64% 71.48%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 (275) 3,260  5,954  4,448  13,544 
Adjusted total stockholders’ equity3 20,877  21,134  22,072  20,748  18,108 
Profitability Ratio
Adjusted ROE4 -1.32% 15.43% 26.98% 21.44% 74.80%

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
ROE = 100 × Net income attributable to Gilead ÷ Total Gilead stockholders’ equity
= 100 × 123 ÷ 18,202 = 0.68%

2 Adjusted net income. See details »

3 Adjusted total stockholders’ equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total stockholders’ equity
= 100 × -275 ÷ 20,877 = -1.32%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Gilead Sciences Inc.’s adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 123  5,386  5,455  4,628  13,501 
Total assets 68,407  61,627  63,675  70,283  56,977 
Profitability Ratio
ROA1 0.18% 8.74% 8.57% 6.58% 23.70%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 (275) 3,260  5,954  4,448  13,544 
Adjusted total assets3 68,451  61,667  64,159  70,720  56,442 
Profitability Ratio
Adjusted ROA4 -0.40% 5.29% 9.28% 6.29% 24.00%

Based on: 10-K (filing date: 2021-02-25), 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).

1 2020 Calculation
ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × 123 ÷ 68,407 = 0.18%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × -275 ÷ 68,451 = -0.40%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Gilead Sciences Inc.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.