Gilead Sciences Inc. (NASDAQ:GILD)

Current Ratio

The current ratio showed a minor decrease from 1.4 in 2020 to 1.27 in 2021, indicating a slight reduction in short-term liquidity. However, it stabilized and exhibited a gradual upward trend afterward, rising to 1.29 in 2022, then increasing more notably to 1.43 in 2023 and reaching 1.6 in 2024. This progression suggests an improving ability to cover short-term liabilities with current assets over the period.

Quick Ratio

The quick ratio experienced a decline from 1.08 in 2020 to 0.95 in 2021, pointing to a decrease in the more liquid portion of current assets relative to current liabilities. Modest recovery occurred in subsequent years, with the ratio rising to 0.99 in 2022, 1.06 in 2023, and reaching 1.2 in 2024. This trend indicates a strengthening position in terms of liquid assets excluded inventory.

Cash Ratio

The cash ratio moved downward from 0.65 in 2020 to 0.56 in 2021, suggesting a reduction in the most liquid assets (cash and cash equivalents) against current liabilities. It maintained a relatively steady position in 2022 at 0.57, followed by increases to 0.64 in 2023 and 0.83 in 2024. The upward movement reflects an improving cash reserve relative to short-term obligations during the latter part of the timeframe.

Overall Liquidity Trends

Across all three liquidity ratios, an initial dip was observed in 2021, reflecting a contraction in liquidity levels. From 2022 onwards, a recovery and consistent improvement in liquidity metrics was evident, culminating in the highest recorded ratios in 2024. This pattern indicates an overall enhancement in the company's capacity to meet short-term liabilities with available liquid assets.

Current Assets

The current assets exhibited a fluctuating but generally increasing trend over the five-year period. Starting at 15,996 million US dollars in 2020, they decreased slightly in 2021 and 2022 to 14,772 million and 14,443 million respectively. However, a notable recovery occurred in 2023 with an increase to 16,085 million, followed by a more significant rise to 19,173 million in 2024.

Current Liabilities

The current liabilities remained relatively stable throughout the period, with minor variations. They increased modestly from 11,397 million US dollars in 2020 to a peak of 11,610 million in 2021. Subsequently, they declined slightly to 11,237 million in 2022 and then held steady around 11,280 million in 2023, before rising again to 12,004 million in 2024.

Current Ratio

The current ratio showed an overall improving trend, indicating an enhancement in liquidity. It decreased from 1.4 in 2020 to its lowest point of 1.27 in 2021, followed by a marginal increase to 1.29 in 2022. This ratio then rose more significantly to 1.43 in 2023 and peaked at 1.6 in 2024, suggesting improved capacity to cover short-term obligations with current assets.

Overall, while current liabilities remained mostly stable, the increase in current assets in the latter years contributed to a strengthening current ratio, signaling improved short-term financial health and liquidity management during the observed period.

Total quick assets

The total quick assets exhibited a fluctuation between 2020 and 2023, initially decreasing from 12,300 million USD in 2020 to a low of 11,013 million USD in 2021. A slight recovery was observed in 2022 and 2023, reaching 11,924 million USD. Notably, the value increased substantially in 2024 to 14,411 million USD, indicating a strong buildup of liquid assets available for immediate obligations.

Current liabilities

Current liabilities showed relative stability throughout the period, with only minor year-to-year fluctuations. Starting at 11,397 million USD in 2020, they increased moderately to 11,610 million USD in 2021, then declined to 11,237 million USD in 2022 and remained approximately steady through 2023. In 2024, current liabilities rose again to 12,004 million USD, representing a gradual upward trend in short-term obligations.

Quick ratio

The quick ratio reflected the trends in quick assets relative to current liabilities, starting at a healthy 1.08 in 2020. The ratio dipped below 1.0 to 0.95 in 2021 and slightly recovered to 0.99 in 2022, indicating a period where liquid assets were nearly insufficient to cover current liabilities. From 2023 onwards, the quick ratio improved, reaching 1.06 and then significantly increasing to 1.20 in 2024. This suggests an enhanced liquidity position, with the company holding more quick assets relative to its short-term liabilities.

Overall, the data reveals a scenario of initial liquidity tightening in 2021 and 2022, followed by a marked improvement in subsequent years, culminating in a strong liquidity buffer by the end of 2024. Concurrently, current liabilities remained relatively stable, making the rise in quick assets the primary driver behind the improved quick ratio.

Total Cash Assets

The total cash assets demonstrated a declining trend from 2020 through 2022, decreasing from $7,408 million to $6,385 million. However, this downward movement reversed in 2023 when cash assets increased to $7,264 million and continued to rise significantly in 2024, reaching $9,991 million. This indicates a renewed strengthening in cash reserves during the latter years.

Current Liabilities

Current liabilities remained relatively stable over the observed period, fluctuating slightly between $11,237 million and $12,004 million. The values suggest a consistent level of short-term obligations, with a moderate increase noted in 2024 to $12,004 million.

Cash Ratio

The cash ratio decreased steadily from 0.65 in 2020 to its lowest point of 0.56 in 2021, followed by a minor increase to 0.57 in 2022. The ratio then improved more substantially in 2023 to 0.64 and peaked at 0.83 in 2024. This pattern reflects an enhanced liquidity position relative to current liabilities toward the end of the period, correlating with the growth in cash assets.