Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Gilead Sciences Inc., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 1.09 1.19 1.27 1.73 1.09
Debt to equity (including operating lease liability) 1.12 1.22 1.30 1.76 1.12
Debt to capital 0.52 0.54 0.56 0.63 0.52
Debt to capital (including operating lease liability) 0.53 0.55 0.56 0.64 0.53
Debt to assets 0.40 0.40 0.39 0.46 0.40
Debt to assets (including operating lease liability) 0.41 0.41 0.40 0.47 0.41
Financial leverage 2.72 2.97 3.23 3.76 2.74
Coverage Ratios
Interest coverage 8.27 7.22 9.27 2.70 6.19
Fixed charge coverage 7.18 6.30 8.15 2.45 5.46

Based on: 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), 10-K (reporting date: 2019-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Gilead Sciences Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
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. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Gilead Sciences Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.
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. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Gilead Sciences Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Gilead Sciences Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Gilead Sciences Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Gilead Sciences Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Debt to Equity

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
 
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Solvency Ratio
Debt to equity1 1.09 1.19 1.27 1.73 1.09
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 5.73 3.67 4.98 6.58
Amgen Inc. 10.37 10.64 4.97 3.51 3.09
Bristol-Myers Squibb Co. 1.35 1.27 1.24 1.34 0.91
Eli Lilly & Co. 2.34 1.52 1.88 2.94 5.88
Johnson & Johnson 0.43 0.52 0.46 0.56 0.47
Merck & Co. Inc. 0.93 0.67 0.87 1.26 1.02
Pfizer Inc. 0.81 0.37 0.50 0.63 0.83
Regeneron Pharmaceuticals Inc. 0.10 0.12 0.14 0.24 0.06
Thermo Fisher Scientific Inc. 0.75 0.78 0.85 0.63 0.60
Vertex Pharmaceuticals Inc. 0.02 0.03 0.06 0.07 0.09
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.06 0.85 0.98 1.20 1.13
Debt to Equity, Industry
Health Care 0.81 0.72 0.79 0.89 0.90

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= 24,987 ÷ 22,833 = 1.09

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. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
Operating lease liabilities, current (classified as Other accrued liabilities) 125 111 101 107 99
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 546 467 489 608 626
Total debt (including operating lease liability) 25,658 25,808 27,285 32,117 25,318
 
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Solvency Ratio
Debt to equity (including operating lease liability)1 1.12 1.22 1.30 1.76 1.12
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 5.82 3.72 5.03 6.66
Amgen Inc. 10.50 10.83 5.07 3.55 3.15
Bristol-Myers Squibb Co. 1.41 1.31 1.27 1.37 0.92
Eli Lilly & Co. 2.44 1.59 1.96 3.06 6.11
Johnson & Johnson 0.44 0.53 0.47 0.57 0.48
Merck & Co. Inc. 0.97 0.70 0.91 1.32 1.06
Pfizer Inc. 0.84 0.41 0.54 0.65 0.85
Regeneron Pharmaceuticals Inc. 0.11 0.12 0.15 0.25 0.07
Thermo Fisher Scientific Inc. 0.78 0.82 0.89 0.65 0.62
Vertex Pharmaceuticals Inc. 0.05 0.06 0.10 0.11 0.11
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.10 0.89 1.02 1.24 1.15
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.86 0.78 0.84 0.95 0.96

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Gilead stockholders’ equity
= 25,658 ÷ 22,833 = 1.12

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. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Total capital 47,820 46,470 47,764 49,604 47,118
Solvency Ratio
Debt to capital1 0.52 0.54 0.56 0.63 0.52
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.91 0.83 0.78 0.76
Bristol-Myers Squibb Co. 0.57 0.56 0.55 0.57 0.48
Eli Lilly & Co. 0.70 0.60 0.65 0.75 0.85
Johnson & Johnson 0.30 0.34 0.31 0.36 0.32
Merck & Co. Inc. 0.48 0.40 0.46 0.56 0.50
Pfizer Inc. 0.45 0.27 0.33 0.39 0.45
Regeneron Pharmaceuticals Inc. 0.09 0.11 0.13 0.20 0.06
Thermo Fisher Scientific Inc. 0.43 0.44 0.46 0.39 0.37
Vertex Pharmaceuticals Inc. 0.02 0.03 0.05 0.06 0.09
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.52 0.46 0.50 0.55 0.53
Debt to Capital, Industry
Health Care 0.45 0.42 0.44 0.47 0.47

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,987 ÷ 47,820 = 0.52

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. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
Operating lease liabilities, current (classified as Other accrued liabilities) 125 111 101 107 99
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 546 467 489 608 626
Total debt (including operating lease liability) 25,658 25,808 27,285 32,117 25,318
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Total capital (including operating lease liability) 48,491 47,048 48,354 50,319 47,843
Solvency Ratio
Debt to capital (including operating lease liability)1 0.53 0.55 0.56 0.64 0.53
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.92 0.84 0.78 0.76
Bristol-Myers Squibb Co. 0.58 0.57 0.56 0.58 0.48
Eli Lilly & Co. 0.71 0.61 0.66 0.75 0.86
Johnson & Johnson 0.31 0.35 0.32 0.36 0.33
Merck & Co. Inc. 0.49 0.41 0.48 0.57 0.51
Pfizer Inc. 0.46 0.29 0.35 0.39 0.46
Regeneron Pharmaceuticals Inc. 0.10 0.11 0.13 0.20 0.07
Thermo Fisher Scientific Inc. 0.44 0.45 0.47 0.40 0.38
Vertex Pharmaceuticals Inc. 0.04 0.06 0.09 0.10 0.10
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.52 0.47 0.50 0.55 0.54
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.46 0.44 0.46 0.49 0.49

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 25,658 ÷ 48,491 = 0.53

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. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
 
Total assets 62,125 63,171 67,952 68,407 61,627
Solvency Ratio
Debt to assets1 0.40 0.40 0.39 0.46 0.40
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.44 0.46 0.52 0.57 0.75
Amgen Inc. 0.67 0.60 0.54 0.52 0.50
Bristol-Myers Squibb Co. 0.42 0.41 0.41 0.43 0.36
Eli Lilly & Co. 0.39 0.33 0.35 0.36 0.39
Johnson & Johnson 0.18 0.21 0.19 0.20 0.18
Merck & Co. Inc. 0.33 0.28 0.31 0.35 0.31
Pfizer Inc. 0.32 0.18 0.21 0.26 0.31
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.35 0.35 0.37 0.31 0.30
Vertex Pharmaceuticals Inc. 0.02 0.03 0.04 0.05 0.07
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.35 0.31 0.33 0.36 0.35
Debt to Assets, Industry
Health Care 0.29 0.27 0.28 0.30 0.31

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 24,987 ÷ 62,125 = 0.40

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. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,798 2,273 1,516 2,757 2,499
Long-term debt, net, excluding current portion 23,189 22,957 25,179 28,645 22,094
Total debt 24,987 25,230 26,695 31,402 24,593
Operating lease liabilities, current (classified as Other accrued liabilities) 125 111 101 107 99
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 546 467 489 608 626
Total debt (including operating lease liability) 25,658 25,808 27,285 32,117 25,318
 
Total assets 62,125 63,171 67,952 68,407 61,627
Solvency Ratio
Debt to assets (including operating lease liability)1 0.41 0.41 0.40 0.47 0.41
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.45 0.46 0.53 0.58 0.75
Amgen Inc. 0.67 0.61 0.56 0.53 0.51
Bristol-Myers Squibb Co. 0.44 0.42 0.42 0.44 0.37
Eli Lilly & Co. 0.41 0.34 0.36 0.37 0.41
Johnson & Johnson 0.18 0.22 0.19 0.21 0.18
Merck & Co. Inc. 0.34 0.29 0.33 0.37 0.32
Pfizer Inc. 0.33 0.20 0.23 0.27 0.32
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.37 0.37 0.38 0.33 0.32
Vertex Pharmaceuticals Inc. 0.04 0.05 0.07 0.08 0.08
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.36 0.32 0.34 0.37 0.36
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.31 0.29 0.30 0.32 0.33

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 25,658 ÷ 62,125 = 0.41

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. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets 62,125 63,171 67,952 68,407 61,627
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Solvency Ratio
Financial leverage1 2.72 2.97 3.23 3.76 2.74
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 13.00 8.04 9.51 11.51
Amgen Inc. 15.59 17.79 9.13 6.69 6.17
Bristol-Myers Squibb Co. 3.23 3.12 3.04 3.13 2.52
Eli Lilly & Co. 5.94 4.65 5.44 8.27 15.07
Johnson & Johnson 2.44 2.44 2.46 2.76 2.65
Merck & Co. Inc. 2.84 2.37 2.77 3.62 3.26
Pfizer Inc. 2.54 2.06 2.35 2.44 2.65
Regeneron Pharmaceuticals Inc. 1.27 1.29 1.36 1.56 1.34
Thermo Fisher Scientific Inc. 2.11 2.21 2.33 2.00 1.97
Vertex Pharmaceuticals Inc. 1.29 1.30 1.33 1.35 1.37
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 3.03 2.75 2.99 3.33 3.18
Financial Leverage, Industry
Health Care 2.79 2.67 2.77 2.93 2.91

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 62,125 ÷ 22,833 = 2.72

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. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34) (22)
Add: Income tax expense 1,246 1,248 2,077 1,580 (204)
Add: Interest expense 944 935 1,001 984 995
Earnings before interest and tax (EBIT) 7,803 6,749 9,279 2,653 6,155
Solvency Ratio
Interest coverage1 8.27 7.22 9.27 2.70 6.19
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 3.81 7.04 6.36 2.38 5.72
Amgen Inc. 3.73 6.22 6.60 7.44 8.09
Bristol-Myers Squibb Co. 8.24 7.26 7.07 -3.84 8.58
Eli Lilly & Co. 14.49 21.53 19.12 21.11 14.15
Johnson & Johnson 20.51 79.71 125.46 83.07 55.49
Merck & Co. Inc. 2.65 18.09 18.22 11.58 13.84
Pfizer Inc. 1.48 29.05 19.83 6.17 12.23
Regeneron Pharmaceuticals Inc. 58.52 82.80 163.75 67.97 81.43
Thermo Fisher Scientific Inc. 5.54 11.56 17.49 14.07 7.02
Vertex Pharmaceuticals Inc. 100.32 78.23 45.40 54.60 24.84
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.17 14.84 14.44 7.28 11.07
Interest Coverage, Industry
Health Care 7.10 12.65 12.22 7.86 8.92

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,803 ÷ 944 = 8.27

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. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Fixed Charge Coverage

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34) (22)
Add: Income tax expense 1,246 1,248 2,077 1,580 (204)
Add: Interest expense 944 935 1,001 984 995
Earnings before interest and tax (EBIT) 7,803 6,749 9,279 2,653 6,155
Add: Operating lease expense 165 162 156 171 162
Earnings before fixed charges and tax 7,968 6,911 9,435 2,824 6,317
 
Interest expense 944 935 1,001 984 995
Operating lease expense 165 162 156 171 162
Fixed charges 1,109 1,097 1,157 1,155 1,157
Solvency Ratio
Fixed charge coverage1 7.18 6.30 8.15 2.45 5.46
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 3.59 6.54 5.90 2.28 5.42
Amgen Inc. 3.55 5.52 5.67 6.48 7.12
Bristol-Myers Squibb Co. 6.69 6.30 6.01 -3.08 7.10
Eli Lilly & Co. 10.98 15.17 13.33 15.06 10.18
Johnson & Johnson 16.50 38.72 48.16 33.93 28.72
Merck & Co. Inc. 2.27 13.69 13.08 8.47 10.31
Pfizer Inc. 1.34 18.79 14.22 4.98 9.88
Regeneron Pharmaceuticals Inc. 46.55 68.67 138.96 57.70 60.98
Thermo Fisher Scientific Inc. 4.61 8.12 12.19 10.30 5.61
Vertex Pharmaceuticals Inc. 48.66 47.97 29.62 39.35 20.79
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.25 11.76 11.53 6.05 9.09
Fixed Charge Coverage, Industry
Health Care 5.54 8.98 8.66 5.80 6.65

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,968 ÷ 1,109 = 7.18

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. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.