Stock Analysis on Net
Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Gilead Sciences Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 24.81% = 9.12% × 2.72
Sep 30, 2023 26.33% = 9.42% × 2.80
Jun 30, 2023 25.92% = 8.80% × 2.95
Mar 31, 2023 26.59% = 9.02% × 2.95
Dec 31, 2022 21.62% = 7.27% × 2.97
Sep 30, 2022 15.82% = 5.33% × 2.97
Jun 30, 2022 20.44% = 6.58% × 3.11
Mar 31, 2022 22.66% = 7.16% × 3.17
Dec 31, 2021 29.55% = 9.16% × 3.23
Sep 30, 2021 34.44% = 11.02% × 3.13
Jun 30, 2021 26.20% = 7.59% × 3.45
Mar 31, 2021 1.59% = 0.45% × 3.56
Dec 31, 2020 0.68% = 0.18% × 3.76
Sep 30, 2020 7.27% = 2.08% × 3.49
Jun 30, 2020 -1.43% = -0.46% × 3.10
Mar 31, 2020 22.49% = 8.31% × 2.71
Dec 31, 2019 23.91% = 8.74% × 2.74
Sep 30, 2019 — = — × 2.87
Jun 30, 2019 — = — × 2.79
Mar 31, 2019 — = — × 2.86

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Gilead Sciences Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 24.81% = 21.03% × 0.43 × 2.72
Sep 30, 2023 26.33% = 21.60% × 0.44 × 2.80
Jun 30, 2023 25.92% = 20.18% × 0.44 × 2.95
Mar 31, 2023 26.59% = 20.87% × 0.43 × 2.95
Dec 31, 2022 21.62% = 17.02% × 0.43 × 2.97
Sep 30, 2022 15.82% = 12.44% × 0.43 × 2.97
Jun 30, 2022 20.44% = 15.22% × 0.43 × 3.11
Mar 31, 2022 22.66% = 16.60% × 0.43 × 3.17
Dec 31, 2021 29.55% = 23.05% × 0.40 × 3.23
Sep 30, 2021 34.44% = 27.21% × 0.41 × 3.13
Jun 30, 2021 26.20% = 19.62% × 0.39 × 3.45
Mar 31, 2021 1.59% = 1.19% × 0.37 × 3.56
Dec 31, 2020 0.68% = 0.51% × 0.36 × 3.76
Sep 30, 2020 7.27% = 5.56% × 0.37 × 3.49
Jun 30, 2020 -1.43% = -1.18% × 0.39 × 3.10
Mar 31, 2020 22.49% = 22.17% × 0.37 × 2.71
Dec 31, 2019 23.91% = 24.35% × 0.36 × 2.74
Sep 30, 2019 — = — × — × 2.87
Jun 30, 2019 — = — × — × 2.79
Mar 31, 2019 — = — × — × 2.86

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Gilead Sciences Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 24.81% = 0.82 × 0.88 × 29.16% × 0.43 × 2.72
Sep 30, 2023 26.33% = 0.81 × 0.89 × 30.16% × 0.44 × 2.80
Jun 30, 2023 25.92% = 0.74 × 0.89 × 30.56% × 0.44 × 2.95
Mar 31, 2023 26.59% = 0.76 × 0.89 × 30.79% × 0.43 × 2.95
Dec 31, 2022 21.62% = 0.79 × 0.86 × 25.11% × 0.43 × 2.97
Sep 30, 2022 15.82% = 0.73 × 0.83 × 20.57% × 0.43 × 2.97
Jun 30, 2022 20.44% = 0.74 × 0.85 × 24.07% × 0.43 × 3.11
Mar 31, 2022 22.66% = 0.77 × 0.86 × 25.25% × 0.43 × 3.17
Dec 31, 2021 29.55% = 0.75 × 0.89 × 34.45% × 0.40 × 3.23
Sep 30, 2021 34.44% = 0.79 × 0.90 × 38.22% × 0.41 × 3.13
Jun 30, 2021 26.20% = 0.77 × 0.87 × 29.50% × 0.39 × 3.45
Mar 31, 2021 1.59% = 0.15 × 0.66 × 11.73% × 0.37 × 3.56
Dec 31, 2020 0.68% = 0.07 × 0.63 × 11.03% × 0.36 × 3.76
Sep 30, 2020 7.27% = 0.71 × 0.65 × 12.05% × 0.37 × 3.49
Jun 30, 2020 -1.43% = — × -1.24 × 1.99% × 0.39 × 3.10
Mar 31, 2020 22.49% = 1.02 × 0.83 × 26.01% × 0.37 × 2.71
Dec 31, 2019 23.91% = 1.04 × 0.84 × 27.93% × 0.36 × 2.74
Sep 30, 2019 — = — × — × — × — × 2.87
Jun 30, 2019 — = — × — × — × — × 2.79
Mar 31, 2019 — = — × — × — × — × 2.86

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Gilead Sciences Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 9.12% = 21.03% × 0.43
Sep 30, 2023 9.42% = 21.60% × 0.44
Jun 30, 2023 8.80% = 20.18% × 0.44
Mar 31, 2023 9.02% = 20.87% × 0.43
Dec 31, 2022 7.27% = 17.02% × 0.43
Sep 30, 2022 5.33% = 12.44% × 0.43
Jun 30, 2022 6.58% = 15.22% × 0.43
Mar 31, 2022 7.16% = 16.60% × 0.43
Dec 31, 2021 9.16% = 23.05% × 0.40
Sep 30, 2021 11.02% = 27.21% × 0.41
Jun 30, 2021 7.59% = 19.62% × 0.39
Mar 31, 2021 0.45% = 1.19% × 0.37
Dec 31, 2020 0.18% = 0.51% × 0.36
Sep 30, 2020 2.08% = 5.56% × 0.37
Jun 30, 2020 -0.46% = -1.18% × 0.39
Mar 31, 2020 8.31% = 22.17% × 0.37
Dec 31, 2019 8.74% = 24.35% × 0.36
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Gilead Sciences Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 9.12% = 0.82 × 0.88 × 29.16% × 0.43
Sep 30, 2023 9.42% = 0.81 × 0.89 × 30.16% × 0.44
Jun 30, 2023 8.80% = 0.74 × 0.89 × 30.56% × 0.44
Mar 31, 2023 9.02% = 0.76 × 0.89 × 30.79% × 0.43
Dec 31, 2022 7.27% = 0.79 × 0.86 × 25.11% × 0.43
Sep 30, 2022 5.33% = 0.73 × 0.83 × 20.57% × 0.43
Jun 30, 2022 6.58% = 0.74 × 0.85 × 24.07% × 0.43
Mar 31, 2022 7.16% = 0.77 × 0.86 × 25.25% × 0.43
Dec 31, 2021 9.16% = 0.75 × 0.89 × 34.45% × 0.40
Sep 30, 2021 11.02% = 0.79 × 0.90 × 38.22% × 0.41
Jun 30, 2021 7.59% = 0.77 × 0.87 × 29.50% × 0.39
Mar 31, 2021 0.45% = 0.15 × 0.66 × 11.73% × 0.37
Dec 31, 2020 0.18% = 0.07 × 0.63 × 11.03% × 0.36
Sep 30, 2020 2.08% = 0.71 × 0.65 × 12.05% × 0.37
Jun 30, 2020 -0.46% = — × -1.24 × 1.99% × 0.39
Mar 31, 2020 8.31% = 1.02 × 0.83 × 26.01% × 0.37
Dec 31, 2019 8.74% = 1.04 × 0.84 × 27.93% × 0.36
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Gilead Sciences Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 21.03% = 0.82 × 0.88 × 29.16%
Sep 30, 2023 21.60% = 0.81 × 0.89 × 30.16%
Jun 30, 2023 20.18% = 0.74 × 0.89 × 30.56%
Mar 31, 2023 20.87% = 0.76 × 0.89 × 30.79%
Dec 31, 2022 17.02% = 0.79 × 0.86 × 25.11%
Sep 30, 2022 12.44% = 0.73 × 0.83 × 20.57%
Jun 30, 2022 15.22% = 0.74 × 0.85 × 24.07%
Mar 31, 2022 16.60% = 0.77 × 0.86 × 25.25%
Dec 31, 2021 23.05% = 0.75 × 0.89 × 34.45%
Sep 30, 2021 27.21% = 0.79 × 0.90 × 38.22%
Jun 30, 2021 19.62% = 0.77 × 0.87 × 29.50%
Mar 31, 2021 1.19% = 0.15 × 0.66 × 11.73%
Dec 31, 2020 0.51% = 0.07 × 0.63 × 11.03%
Sep 30, 2020 5.56% = 0.71 × 0.65 × 12.05%
Jun 30, 2020 -1.18% = — × -1.24 × 1.99%
Mar 31, 2020 22.17% = 1.02 × 0.83 × 26.01%
Dec 31, 2019 24.35% = 1.04 × 0.84 × 27.93%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q4 2023 is the decrease in operating profitability measured by EBIT margin ratio.