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

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Gilead Sciences Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 1.73 1.09 1.28 1.64 1.39
Debt to equity (including operating lease liability) 1.76 1.12 1.28 1.64 1.39
Debt to capital 0.63 0.52 0.56 0.62 0.58
Debt to capital (including operating lease liability) 0.64 0.53 0.56 0.62 0.58
Debt to assets 0.46 0.40 0.43 0.48 0.46
Debt to assets (including operating lease liability) 0.47 0.41 0.43 0.48 0.46
Financial leverage 3.76 2.74 2.98 3.44 3.02
Coverage Ratios
Interest coverage 2.70 6.19 8.24 13.10 18.74
Fixed charge coverage 2.45 5.46 7.58 12.26 17.36

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Gilead Sciences Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Gilead Sciences Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Gilead Sciences Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Gilead Sciences Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Gilead Sciences Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Gilead Sciences Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Gilead Sciences Inc.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Gilead Sciences Inc.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Gilead Sciences Inc.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity

Gilead Sciences Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
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
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.57 0.58 0.64 0.90 1.07
AbbVie Inc. 6.58 7.33 7.95
Amgen Inc. 3.51 3.09 2.71 1.40 1.16
Bristol-Myers Squibb Co. 1.34 0.91 0.52 0.68 0.41
Eli Lilly & Co. 2.94 5.88 1.30 1.18 0.74
Illumina Inc. 0.25 0.25 0.53 0.49 0.58
Johnson & Johnson 0.56 0.47 0.51 0.57 0.39
Merck & Co. Inc. 1.26 1.02 0.94 0.71 0.62
Pfizer Inc. 0.63 0.83 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.24 0.06 0.08 0.11 0.11
Vertex Pharmaceuticals Inc. 0.07 0.09 0.13 0.29 0.71
Zoetis Inc. 1.91 2.38 2.95 2.80 3.00
Debt to Equity, Sector
Pharmaceuticals & Biotechnology 1.12 1.00 0.94 0.84
Debt to Equity, Industry
Health Care 0.91 0.83 0.84 0.79

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 Click competitor name to see calculations.

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

Debt to Equity (including Operating Lease Liability)

Gilead Sciences Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
Total debt 31,402  24,593  27,322  33,542  26,346 
Operating lease liabilities, current (classified in Other accrued liabilities) 107  99  —  —  — 
Operating lease liabilities, noncurrent (classified in Other long-term obligations) 608  626  —  —  — 
Total debt (including operating lease liability) 32,117  25,318  27,322  33,542  26,346 
 
Total Gilead stockholders’ equity 18,202  22,525  21,387  20,442  18,887 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.76 1.12 1.28 1.64 1.39
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.61 0.61 0.64 0.90 1.07
AbbVie Inc. 6.66 7.33 7.95
Amgen Inc. 3.55 3.15 2.71 1.40 1.16
Bristol-Myers Squibb Co. 1.37 0.92 0.52 0.68 0.41
Eli Lilly & Co. 3.06 6.11 1.30 1.18 0.74
Illumina Inc. 0.41 0.41 0.53 0.49 0.58
Johnson & Johnson 0.57 0.48 0.51 0.57 0.39
Merck & Co. Inc. 1.32 1.06 0.94 0.71 0.62
Pfizer Inc. 0.65 0.85 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.25 0.07 0.08 0.11 0.11
Vertex Pharmaceuticals Inc. 0.11 0.11 0.13 0.29 0.71
Zoetis Inc. 1.96 2.45 2.95 2.80 3.00
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 1.15 1.00 0.94 0.84
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.94 0.83 0.84 0.79

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Gilead stockholders’ equity
= 32,117 ÷ 18,202 = 1.76

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Gilead Sciences Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital

Gilead Sciences Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
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 
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
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.36 0.37 0.39 0.47 0.52
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Amgen Inc. 0.78 0.76 0.73 0.58 0.54
Bristol-Myers Squibb Co. 0.57 0.48 0.34 0.40 0.29
Eli Lilly & Co. 0.75 0.85 0.57 0.54 0.42
Illumina Inc. 0.20 0.20 0.35 0.33 0.37
Johnson & Johnson 0.36 0.32 0.34 0.37 0.28
Merck & Co. Inc. 0.56 0.50 0.48 0.42 0.38
Pfizer Inc. 0.39 0.45 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Vertex Pharmaceuticals Inc. 0.06 0.09 0.12 0.22 0.42
Zoetis Inc. 0.66 0.70 0.75 0.74 0.75
Debt to Capital, Sector
Pharmaceuticals & Biotechnology 0.53 0.50 0.48 0.46
Debt to Capital, Industry
Health Care 0.48 0.45 0.46 0.44

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 Click competitor name to see calculations.

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

Debt to Capital (including Operating Lease Liability)

Gilead Sciences Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
Total debt 31,402  24,593  27,322  33,542  26,346 
Operating lease liabilities, current (classified in Other accrued liabilities) 107  99  —  —  — 
Operating lease liabilities, noncurrent (classified in Other long-term obligations) 608  626  —  —  — 
Total debt (including operating lease liability) 32,117  25,318  27,322  33,542  26,346 
Total Gilead stockholders’ equity 18,202  22,525  21,387  20,442  18,887 
Total capital (including operating lease liability) 50,319  47,843  48,709  53,984  45,233 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.64 0.53 0.56 0.62 0.58
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.38 0.38 0.39 0.47 0.52
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Amgen Inc. 0.78 0.76 0.73 0.58 0.54
Bristol-Myers Squibb Co. 0.58 0.48 0.34 0.40 0.29
Eli Lilly & Co. 0.75 0.86 0.57 0.54 0.42
Illumina Inc. 0.29 0.29 0.35 0.33 0.37
Johnson & Johnson 0.36 0.33 0.34 0.37 0.28
Merck & Co. Inc. 0.57 0.51 0.48 0.42 0.38
Pfizer Inc. 0.39 0.46 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Vertex Pharmaceuticals Inc. 0.10 0.10 0.12 0.22 0.42
Zoetis Inc. 0.66 0.71 0.75 0.74 0.75
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.54 0.50 0.48 0.46
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.45 0.46 0.44

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 32,117 ÷ 50,319 = 0.64

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Gilead Sciences Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets

Gilead Sciences Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
Total debt 31,402  24,593  27,322  33,542  26,346 
 
Total assets 68,407  61,627  63,675  70,283  56,977 
Solvency Ratio
Debt to assets1 0.46 0.40 0.43 0.48 0.46
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.26 0.27 0.29 0.37 0.42
AbbVie Inc. 0.57 0.75 0.68 0.53 0.56
Amgen Inc. 0.52 0.50 0.51 0.44 0.45
Bristol-Myers Squibb Co. 0.43 0.36 0.21 0.24 0.20
Eli Lilly & Co. 0.36 0.39 0.29 0.30 0.27
Illumina Inc. 0.16 0.16 0.29 0.25 0.30
Johnson & Johnson 0.20 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.35 0.31 0.30 0.28 0.26
Pfizer Inc. 0.26 0.31 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Vertex Pharmaceuticals Inc. 0.05 0.07 0.09 0.16 0.28
Zoetis Inc. 0.53 0.56 0.60 0.58 0.58
Debt to Assets, Sector
Pharmaceuticals & Biotechnology 0.35 0.32 0.32 0.31
Debt to Assets, Industry
Health Care 0.33 0.31 0.32 0.31

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 assets = Total debt ÷ Total assets
= 31,402 ÷ 68,407 = 0.46

2 Click competitor name to see calculations.

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

Debt to Assets (including Operating Lease Liability)

Gilead Sciences Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 2,757  2,499  2,748  2,747  — 
Long-term debt, net, excluding current portion 28,645  22,094  24,574  30,795  26,346 
Total debt 31,402  24,593  27,322  33,542  26,346 
Operating lease liabilities, current (classified in Other accrued liabilities) 107  99  —  —  — 
Operating lease liabilities, noncurrent (classified in Other long-term obligations) 608  626  —  —  — 
Total debt (including operating lease liability) 32,117  25,318  27,322  33,542  26,346 
 
Total assets 68,407  61,627  63,675  70,283  56,977 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.47 0.41 0.43 0.48 0.46
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.27 0.28 0.29 0.37 0.42
AbbVie Inc. 0.58 0.75 0.68 0.53 0.56
Amgen Inc. 0.53 0.51 0.51 0.44 0.45
Bristol-Myers Squibb Co. 0.44 0.37 0.21 0.24 0.20
Eli Lilly & Co. 0.37 0.41 0.29 0.30 0.27
Illumina Inc. 0.25 0.26 0.29 0.25 0.30
Johnson & Johnson 0.21 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.37 0.32 0.30 0.28 0.26
Pfizer Inc. 0.27 0.32 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Vertex Pharmaceuticals Inc. 0.08 0.08 0.09 0.16 0.28
Zoetis Inc. 0.54 0.58 0.60 0.58 0.58
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.36 0.32 0.32 0.31
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.34 0.31 0.32 0.31

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 32,117 ÷ 68,407 = 0.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Gilead Sciences Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Financial Leverage

Gilead Sciences Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
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
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.21 2.18 2.20 2.47 2.56
AbbVie Inc. 11.51 13.89 14.26
Amgen Inc. 6.69 6.17 5.31 3.17 2.60
Bristol-Myers Squibb Co. 3.13 2.52 2.49 2.86 2.08
Eli Lilly & Co. 8.27 15.07 4.47 3.88 2.77
Illumina Inc. 1.62 1.59 1.85 1.91 1.95
Johnson & Johnson 2.76 2.65 2.56 2.61 2.01
Merck & Co. Inc. 3.62 3.26 3.09 2.56 2.38
Pfizer Inc. 2.44 2.65 2.51 2.41 2.88
Regeneron Pharmaceuticals Inc. 1.56 1.34 1.34 1.43 1.57
Vertex Pharmaceuticals Inc. 1.35 1.37 1.41 1.75 2.50
Zoetis Inc. 3.61 4.26 4.93 4.85 5.14
Financial Leverage, Sector
Pharmaceuticals & Biotechnology 3.18 3.08 2.89 2.67
Financial Leverage, Industry
Health Care 2.77 2.68 2.66 2.54

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 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Gilead Sciences Inc.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Interest Coverage

Gilead Sciences Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 123  5,386  5,455  4,628  13,501 
Add: Net income attributable to noncontrolling interest (34) (22) 16  (13)
Add: Income tax expense 1,580  (204) 2,339  8,885  3,609 
Add: Interest expense 984  995  1,077  1,118  964 
Earnings before interest and tax (EBIT) 2,653  6,155  8,876  14,647  18,061 
Solvency Ratio
Interest coverage1 2.70 6.19 8.24 13.10 18.74
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 10.10 7.09 4.48 3.47 4.28
AbbVie Inc. 2.38 5.72 4.86 7.72 8.53
Amgen Inc. 7.44 8.09 7.86 8.36 8.27
Bristol-Myers Squibb Co. -3.84 8.58 33.61 27.18 36.42
Eli Lilly & Co. 21.11 14.15 14.95 10.77 19.22
Illumina Inc. 18.47 22.50 16.68 29.19 17.91
Johnson & Johnson 83.07 55.49 18.91 19.92 28.28
Merck & Co. Inc. 11.58 13.84 12.27 9.65 7.72
Pfizer Inc. 6.17 12.23 10.03 10.69 8.04
Regeneron Pharmaceuticals Inc. 67.97 81.43 91.55 83.75 185.82
Vertex Pharmaceuticals Inc. 54.60 24.84 9.28 0.77 0.17
Zoetis Inc. 9.64 9.08 9.20 9.71 8.40
Interest Coverage, Sector
Pharmaceuticals & Biotechnology 11.09 10.29 10.99 12.62
Interest Coverage, Industry
Health Care 9.95 9.71 10.14 10.74

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
Interest coverage = EBIT ÷ Interest expense
= 2,653 ÷ 984 = 2.70

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Gilead Sciences Inc.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Fixed Charge Coverage

Gilead Sciences Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 123  5,386  5,455  4,628  13,501 
Add: Net income attributable to noncontrolling interest (34) (22) 16  (13)
Add: Income tax expense 1,580  (204) 2,339  8,885  3,609 
Add: Interest expense 984  995  1,077  1,118  964 
Earnings before interest and tax (EBIT) 2,653  6,155  8,876  14,647  18,061 
Add: Operating lease expense 171  162  109  84  81 
Earnings before fixed charges and tax 2,824  6,317  8,985  14,731  18,142 
 
Interest expense 984  995  1,077  1,118  964 
Operating lease expense 171  162  109  84  81 
Fixed charges 1,155  1,157  1,186  1,202  1,045 
Solvency Ratio
Fixed charge coverage1 2.45 5.46 7.58 12.26 17.36
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories 6.68 5.14 4.48 3.47 4.28
AbbVie Inc. 2.28 5.42 4.44 6.86 7.54
Amgen Inc. 6.48 7.12 7.13 7.56 7.57
Bristol-Myers Squibb Co. -3.08 7.10 20.07 17.24 19.96
Eli Lilly & Co. 15.06 10.18 8.66 5.89 9.31
Illumina Inc. 7.44 9.22 8.98 13.57 8.11
Johnson & Johnson 33.93 28.72 14.46 14.53 19.75
Merck & Co. Inc. 8.47 10.31 8.95 7.03 5.73
Pfizer Inc. 4.98 9.88 8.34 8.76 6.64
Vertex Pharmaceuticals Inc. 39.35 20.79 7.69 0.82 0.33
Zoetis Inc. 8.21 7.85 7.73 8.55 7.43
Fixed Charge Coverage, Sector
Pharmaceuticals & Biotechnology 9.00 8.63 9.13 10.29
Fixed Charge Coverage, Industry
Health Care 7.68 7.66 7.99 8.46

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,824 ÷ 1,155 = 2.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Gilead Sciences Inc.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.