Analysis of Geographic Areas
Gilead Sciences Inc. operates in 2 regions: U.S. and International.
Area Asset Turnover
Gilead Sciences Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | 4.20 | 4.30 | 4.14 | 4.19 | 4.63 |
| International | 13.58 | 13.02 | 12.27 | 8.63 | 8.35 |
Based on: 10-K (reporting date: 2025-12-31), 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).
The asset turnover ratios for the geographic areas examined demonstrate distinct trends between 2021 and 2025. The U.S. region exhibits relative stability, while the International region shows a consistent upward trajectory.
- U.S. Asset Turnover
- The U.S. asset turnover ratio began at 4.63 in 2021, decreased to 4.19 in 2022, and remained relatively flat through 2023 at 4.14. A slight increase to 4.30 was observed in 2024, followed by a minor decline to 4.20 in 2025. Overall, the ratio experienced a modest decrease over the five-year period, suggesting a slightly less efficient utilization of assets in generating revenue within the U.S. region.
- International Asset Turnover
- The International asset turnover ratio displayed a clear increasing trend. Starting at 8.35 in 2021, it rose to 8.63 in 2022. Significant increases were then recorded in subsequent years, reaching 12.27 in 2023, 13.02 in 2024, and culminating at 13.58 in 2025. This indicates a progressively more efficient use of assets to generate revenue in international markets.
- Comparative Analysis
- Throughout the examined period, the International region consistently maintained a higher asset turnover ratio than the U.S. region. The gap between the two regions widened over time, with the International ratio nearly tripling that of the U.S. ratio by 2025. This suggests that assets deployed in international operations are generating significantly more revenue per dollar invested compared to those in the U.S.
The diverging trends in asset turnover between the two geographic areas warrant further investigation. Potential factors contributing to these trends could include differences in market growth rates, operational efficiencies, asset composition, and revenue recognition policies within each region.
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Area Asset Turnover: U.S.
Gilead Sciences Inc.; U.S.; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 20,876) | 20,591) | 19,438) | 18,884) | 19,267) |
| Property, plant and equipment, net | 4,975) | 4,787) | 4,691) | 4,502) | 4,158) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 4.20 | 4.30 | 4.14 | 4.19 | 4.63 |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= 20,876 ÷ 4,975 = 4.20
The financial performance related to U.S. operations demonstrates a generally stable asset turnover ratio alongside fluctuating revenue and a consistent increase in property, plant, and equipment. Revenues experienced a slight decrease from 2021 to 2022, followed by increases in subsequent years, reaching $20,876 million in 2025. Net property, plant, and equipment exhibited a steady upward trend throughout the period, increasing from $4,158 million in 2021 to $4,975 million in 2025.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency with which assets are used to generate revenue, decreased from 4.63 in 2021 to 4.19 in 2022. This indicates a reduced efficiency in asset utilization during that year. The ratio then stabilized, fluctuating between 4.14 and 4.30 from 2022 through 2024, before decreasing slightly to 4.20 in 2025. While the ratio experienced initial decline, the subsequent stabilization suggests a consistent, though not improving, level of asset utilization in recent periods. The slight decrease in 2025 warrants monitoring to determine if it signals a developing trend.
The consistent growth in property, plant, and equipment, coupled with the relatively stable asset turnover ratio, suggests that investments in fixed assets are contributing to revenue generation, but not at an increasing rate of efficiency. The initial dip in the asset turnover ratio in 2022, coinciding with a revenue decrease, highlights the sensitivity of this metric to revenue fluctuations. Overall, the U.S. operations demonstrate a moderate level of asset efficiency with a tendency towards stability in recent years.
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Area Asset Turnover: International
Gilead Sciences Inc.; International; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 8,567) | 8,163) | 7,678) | 8,397) | 8,038) |
| Property, plant and equipment, net | 631) | 627) | 626) | 973) | 963) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 13.58 | 13.02 | 12.27 | 8.63 | 8.35 |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= 8,567 ÷ 631 = 13.58
The financial performance related to international operations demonstrates a notable trend in asset utilization over the observed period. Revenues from international areas fluctuated, beginning at US$8,038 million in 2021, increasing to US$8,397 million in 2022, decreasing to US$7,678 million in 2023, and then recovering to US$8,163 million in 2024 before reaching US$8,567 million in 2025. Simultaneously, net property, plant, and equipment experienced a decrease from US$963 million in 2021 to US$626 million in 2023, remaining relatively stable at US$627 million in 2024 and US$631 million in 2025.
- Area Asset Turnover
- The area asset turnover ratio exhibited a consistent upward trajectory. Starting at 8.35 in 2021, it rose to 8.63 in 2022. A significant increase was then observed, reaching 12.27 in 2023, and continued to climb to 13.02 in 2024 and 13.58 in 2025. This indicates a progressively more efficient utilization of assets to generate revenue within international areas.
The increase in the area asset turnover ratio, despite fluctuations in revenue and a decrease in property, plant, and equipment, suggests improved operational efficiency or a shift in the composition of assets. The company appears to be generating more revenue per dollar of assets deployed in international markets. The stabilization of property, plant, and equipment in the later years, coupled with continued revenue growth and a rising turnover ratio, reinforces this observation.
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Revenues
Gilead Sciences Inc., revenues by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | 20,876) | 20,591) | 19,438) | 18,884) | 19,267) |
| International | 8,567) | 8,163) | 7,678) | 8,397) | 8,038) |
| Total | 29,443) | 28,754) | 27,116) | 27,281) | 27,305) |
Based on: 10-K (reporting date: 2025-12-31), 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).
Revenue performance demonstrates distinct trends across geographic regions between 2021 and 2025. Overall, total revenue exhibits a generally positive trajectory, though with some fluctuation. A closer examination of the U.S. and International segments reveals differing patterns contributing to this overall trend.
- U.S. Revenue
- U.S. revenue experienced a slight decrease from US$19,267 million in 2021 to US$18,884 million in 2022. However, it subsequently recovered, showing consistent growth through 2025, reaching US$20,876 million. This indicates a strengthening performance within the U.S. market in the latter part of the analyzed period.
- International Revenue
- International revenue increased from US$8,038 million in 2021 to US$8,397 million in 2022. A decline was then observed in 2023, falling to US$7,678 million, before recovering to US$8,163 million in 2024 and further increasing to US$8,567 million in 2025. The international segment demonstrates more volatility than the U.S. segment.
- Total Revenue Composition
- The U.S. consistently represents the larger portion of total revenue throughout the period. In 2021, U.S. revenue accounted for approximately 70.5% of total revenue, and this proportion remained relatively stable, fluctuating between approximately 69.8% and 70.9% through 2025. The international segment contributes the remaining portion, ranging from approximately 29.5% to 30.2% of total revenue.
- Overall Revenue Trend
- Total revenue experienced a minor decrease from US$27,305 million in 2021 to US$27,281 million in 2022. A slight decline continued into 2023, reaching US$27,116 million. However, a noticeable upward trend is observed in 2024 and 2025, with total revenue increasing to US$28,754 million and US$29,443 million respectively. This suggests a recovery and growth phase in the more recent years.
The observed trends suggest a growing reliance on the U.S. market for revenue generation, coupled with a fluctuating, but ultimately improving, performance in international markets. The recent growth in total revenue is primarily driven by the positive trend in U.S. revenue.
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Property, plant and equipment, net
Gilead Sciences Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | 4,975) | 4,787) | 4,691) | 4,502) | 4,158) |
| International | 631) | 627) | 626) | 973) | 963) |
| Total | 5,606) | 5,414) | 5,317) | 5,475) | 5,121) |
Based on: 10-K (reporting date: 2025-12-31), 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).
Property, plant, and equipment, net, demonstrates distinct trends when analyzed by geographic area. The U.S. consistently represents the largest portion of the total net property, plant, and equipment. Between 2021 and 2025, the U.S. figures exhibit a steady upward trend, increasing from US$4,158 million to US$4,975 million.
- U.S. Trend
- The U.S. segment shows consistent year-over-year increases in net property, plant, and equipment. The growth, while positive, appears to be moderating, with the largest single-year increase occurring between 2021 and 2022 (US$344 million), and the smallest between 2023 and 2024 (US$96 million). This suggests a potential slowing in capital expenditure or a higher rate of depreciation offsetting new investments.
In contrast, the International segment presents a different pattern. After a slight increase from US$963 million in 2021 to US$973 million in 2022, the International segment experienced a significant decrease to US$626 million in 2023. This figure remained relatively stable through 2025, fluctuating only slightly between US$626 million and US$631 million.
- International Trend
- The substantial decline in the International segment’s net property, plant, and equipment in 2023 warrants further investigation. Potential causes could include asset disposals, impairment charges, currency fluctuations impacting reported values, or a shift in investment strategy away from physical assets in those regions. The subsequent stabilization at a lower level suggests a deliberate change in asset allocation or a lack of significant new investment.
Total net property, plant, and equipment initially increased from US$5,121 million in 2021 to US$5,475 million in 2022, mirroring the growth in the U.S. segment. However, a decrease to US$5,317 million was observed in 2023, driven by the decline in the International segment. The total figures then show modest growth through 2025, reaching US$5,606 million.
- Total Trend & Geographic Impact
- The overall trend in total net property, plant, and equipment is influenced significantly by the performance of both geographic segments. The U.S. segment’s continued growth is partially offset by the decline and subsequent stabilization of the International segment. The overall growth rate from 2021 to 2025 is positive, but lower than the growth observed in the U.S. segment alone, indicating the International segment is acting as a drag on overall asset growth.
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