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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. | 4.30 | 4.14 | 4.19 | 4.63 | 4.79 |
| International | 13.02 | 12.27 | 8.63 | 8.35 | 7.22 |
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).
The annual geographic area asset turnover ratios demonstrate distinct trends in the U.S. and International segments over the five-year period ending December 31, 2024.
- U.S. Asset Turnover
- The U.S. ratio shows a gradual decline from 4.79 in 2020 to 4.14 by the end of 2023, followed by a slight uptick to 4.3 in 2024. This overall downward trend over the first four years suggests a decreasing efficiency in generating revenue from assets within the U.S. market. However, the minor rebound in the final year may indicate an initial stabilization or modest improvement in asset utilization.
- International Asset Turnover
- The International ratio exhibits a steady and significant increase from 7.22 in 2020 to 13.02 in 2024. The growth accelerates notably after 2022, with the ratio jumping from 8.63 to 12.27 in 2023, and then further increasing to 13.02 in 2024. This indicates a marked improvement in asset turnover efficiency internationally, suggesting either enhanced revenue generation capabilities or more effective asset management outside the U.S. region.
Overall, the data reflect diverging performance dynamics between the two geographic areas. The International segment demonstrates robust growth and increasing efficiency, potentially outpacing the U.S. market where asset turnover ratios have declined and only slightly recovered toward the end of the analyzed period. These patterns may imply a growing emphasis on or stronger market conditions internationally compared to the domestic environment.
Area Asset Turnover: U.S.
Gilead Sciences Inc.; U.S.; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 20,591) | 19,438) | 18,884) | 19,267) | 18,217) |
| Property, plant and equipment, net | 4,787) | 4,691) | 4,502) | 4,158) | 3,800) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 4.30 | 4.14 | 4.19 | 4.63 | 4.79 |
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= 20,591 ÷ 4,787 = 4.30
- Revenue Trends
- Revenues in the U.S. geographic area show a general upward trend over the five-year period. Starting at $18,217 million in 2020, revenues increased to $19,267 million in 2021. There was a slight dip in 2022 to $18,884 million, followed by a consistent increase to $19,438 million in 2023 and reaching $20,591 million in 2024. Overall, this represents a gradual recovery and growth after a minor decline in 2022.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment demonstrates steady growth throughout the period. Beginning at $3,800 million at the end of 2020, this asset base expanded annually to $4,158 million in 2021, $4,502 million in 2022, $4,691 million in 2023, and finally $4,787 million in 2024. The consistent increase suggests ongoing capital investment and expansion activities in the U.S. operations.
- Area Asset Turnover Ratio
- The area asset turnover ratio declines from 4.79 in 2020 to 4.63 in 2021, and further to 4.19 in 2022. It stabilizes somewhat with a marginal decrease to 4.14 in 2023, before slightly increasing to 4.30 in 2024. This downward trend followed by partial recovery indicates that while asset efficiency initially decreased, there is some improvement in how effectively assets generate revenue in the later years.
- Overall Observations
- The data reveals an environment of gradual revenue growth supported by increasing capital assets. However, the decrease in area asset turnover ratios during the early years highlights a potential reduction in asset utilization efficiency, which improves modestly by 2024. This pattern may reflect strategic investments to enhance future revenue generation capacity, with some lag in immediate efficiency returns.
Area Asset Turnover: International
Gilead Sciences Inc.; International; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 8,163) | 7,678) | 8,397) | 8,038) | 6,472) |
| Property, plant and equipment, net | 627) | 626) | 973) | 963) | 897) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 13.02 | 12.27 | 8.63 | 8.35 | 7.22 |
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= 8,163 ÷ 627 = 13.02
- Revenues
- The international revenues displayed an overall growth trend from 2020 through 2024. Starting at 6,472 million US dollars in 2020, revenues increased significantly to 8,038 million in 2021. This upward trend continued with a peak of 8,397 million in 2022. However, a decline occurred in 2023, with revenues dropping to 7,678 million, followed by a recovery to 8,163 million in 2024. This suggests some volatility but a general expansion in revenue over the five-year period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remained relatively stable from 2020 to 2022, recording slight increases from 897 million US dollars in 2020 to 973 million in 2022. A marked decrease is observed in 2023, where the value fell sharply to 626 million and remained almost unchanged in 2024 at 627 million. This decline may indicate asset sales, impairments, or a shift in capital expenditures during the latter part of the period.
- Area Asset Turnover
- The asset turnover ratio indicates increasing efficiency in asset utilization over the analyzed period. Beginning at 7.22 in 2020, the ratio rose steadily to 8.63 in 2022. A substantial jump occurred in 2023, reaching 12.27, and further increased to 13.02 in 2024. This substantial improvement despite the reduced asset base suggests enhanced operational efficiency or improved revenue generation from the asset footprint in the international area.
Revenues
Gilead Sciences Inc., revenues by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. | 20,591) | 19,438) | 18,884) | 19,267) | 18,217) |
| International | 8,163) | 7,678) | 8,397) | 8,038) | 6,472) |
| Total | 28,754) | 27,116) | 27,281) | 27,305) | 24,689) |
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).
- U.S. Revenue Trend
- The revenue generated from the U.S. market shows a steady increase over the five-year period. Starting at $18,217 million in 2020, it rose annually to reach $20,591 million by 2024. This consistent growth suggests strong market performance domestically.
- International Revenue Trend
- International revenue reflects more variability compared to the U.S. segment. It increased significantly from $6,472 million in 2020 to a peak of $8,397 million in 2022, followed by a decline to $7,678 million in 2023. In 2024, there is a slight recovery with revenue reaching $8,163 million, though it remains below the 2022 peak.
- Total Revenue Trend
- Total revenue combining both U.S. and international markets shows growth from $24,689 million in 2020 to $28,754 million in 2024. The upward trend is less smooth than the U.S. alone because of fluctuations in international revenue, especially the dip observed in 2023. Nevertheless, the overall total revenue increased by approximately 16.5% over the five-year span.
- Insights and Observations
- The data indicates a robust and consistent growth in the domestic U.S. market, which has steadily contributed to overall revenue increases. In contrast, international revenues demonstrate greater volatility, with noticeable fluctuations that may reflect market or operational uncertainties abroad. Despite this, the international segment recovers somewhat in 2024, contributing to an overall positive revenue trajectory. The combined effect is a steady increase in total revenue, driven largely by domestic growth but supported to a lesser and more variable extent by international markets.
Property, plant and equipment, net
Gilead Sciences Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| U.S. | 4,787) | 4,691) | 4,502) | 4,158) | 3,800) |
| International | 627) | 626) | 973) | 963) | 897) |
| Total | 5,414) | 5,317) | 5,475) | 5,121) | 4,697) |
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).
- Property, Plant and Equipment - U.S. Geographic Area
- The net value of property, plant, and equipment has shown a consistent upward trend in the U.S. geographic area from 2020 to 2024. It increased from $3,800 million in 2020 to $4,787 million in 2024, representing a steady but moderate growth over the five-year period. The increases each year reflect ongoing investment or lower depreciation relative to new assets acquired.
- Property, Plant and Equipment - International Geographic Area
- In contrast to the U.S., the international net property, plant, and equipment values remained relatively stable initially, rising slightly from $897 million in 2020 to $973 million in 2022. However, there was a sharp decline in 2023 to $626 million, followed by a near stabilization at $627 million in 2024. This significant drop indicates possible asset disposals, impairments, or reclassification of assets in the international segment during this period.
- Total Property, Plant and Equipment
- The total net value of property, plant, and equipment increased from $4,697 million in 2020 to a peak of $5,475 million in 2022, reflecting cumulative growth driven predominantly by U.S. assets. After 2022, the total decreased to $5,317 million in 2023, likely influenced by the reduction in international assets, before slightly increasing again to $5,414 million in 2024. Overall, the total asset base expanded over the five years but showed volatility in the later period related to international holdings.