Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Gilead Sciences Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Debt to Equity
- The debt to equity ratio demonstrates a downward trend from the beginning of the observed period, starting at 1.59 and declining steadily to a low of 1.09 by the end of 2023. However, this is followed by a notable rise in early 2024, peaking near 1.44, before declining again towards 1.16 by the last recorded date. This pattern indicates an overall reduction in reliance on debt relative to equity through 2021 to 2023, with intermittent increases starting in 2024.
- Debt to Capital
- The debt to capital ratio consistently decreases from 0.61 at the start, reaching 0.52 by the end of 2023. A subsequent increase occurs in early 2024, peaking close to 0.59. Post-2024, the ratio shows a gradual decline again, finishing near 0.54. This ratio's movement parallels the debt to equity ratio, reflecting similar fluctuations in capital structure over the period.
- Debt to Assets
- This ratio follows a similar trend to the previous two leverage measures, starting at 0.45 and declining steadily to around 0.40 by the end of 2023. There is an increase again beginning in early 2024, reaching about 0.45, before a slight decline towards 0.43. This indicates a reduction in the proportion of assets financed through debt during the earlier period with some re-leveraging afterwards.
- Financial Leverage
- Financial leverage ratios exhibit a downward trajectory from 3.56 to about 2.72 by the end of 2023, signaling reduced leverage and possibly more equity funding. A modest rebound occurs in 2024, with ratios increasing to around 3.21, followed by another decline to 2.72 by the latest period. The fluctuations correlate closely with debt-related ratios, suggesting consistent financial strategy adjustments.
- Interest Coverage
- Interest coverage ratios demonstrate significant variability. Initially, they start relatively low at 2.93, then improve considerably reaching a peak over 10 in late 2021. During 2022 and 2023, the ratio remains relatively high, fluctuating between approximately 5.8 and 9.03, indicative of comfortable interest expense coverage. However, in early 2024, there's a sharp decline to a low of around 1.18, signaling tight interest coverage and higher risk. Subsequently, the ratio recovers sharply, climbing back above 10 by the final reporting period, reflecting improved earnings or reduced interest obligations.
Debt Ratios
Coverage Ratios
Debt to Equity
Gilead Sciences Inc., debt to equity calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt, net | 2,806) | 2,806) | 2,806) | 1,815) | 1,812) | 1,810) | 3,667) | 1,798) | 1,793) | 4,037) | 2,283) | 2,273) | 2,270) | 1,021) | 1,025) | 1,516) | 2,511) | 2,261) | 2,259) | ||||||
| Long-term debt, net, excluding current portion | 22,135) | 22,140) | 22,146) | 24,896) | 21,437) | 21,540) | 21,527) | 23,189) | 23,189) | 21,209) | 22,956) | 22,957) | 22,953) | 25,195) | 25,183) | 25,179) | 25,175) | 27,914) | 27,907) | ||||||
| Total debt | 24,941) | 24,946) | 24,952) | 26,711) | 23,249) | 23,350) | 25,194) | 24,987) | 24,982) | 25,246) | 25,239) | 25,230) | 25,223) | 26,216) | 26,208) | 26,695) | 27,686) | 30,175) | 30,166) | ||||||
| Total Gilead stockholders’ equity | 21,540) | 19,674) | 19,162) | 19,330) | 18,475) | 18,281) | 17,539) | 22,833) | 22,314) | 21,158) | 20,997) | 21,240) | 21,081) | 20,236) | 19,927) | 21,069) | 21,470) | 19,703) | 18,952) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 1.16 | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | 1.27 | 1.29 | 1.53 | 1.59 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | — | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | 4.98 | 5.96 | 6.53 | 6.24 | ||||||
| Amgen Inc. | 5.67 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | 4.97 | 4.57 | 3.98 | 3.50 | ||||||
| Bristol-Myers Squibb Co. | 2.64 | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | 1.24 | 1.20 | 1.23 | 1.23 | ||||||
| Danaher Corp. | 0.33 | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | 0.49 | 0.54 | 0.48 | 0.50 | ||||||
| Eli Lilly & Co. | 1.79 | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | 1.88 | 2.20 | 2.56 | 2.35 | ||||||
| Johnson & Johnson | 0.58 | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | 0.46 | 0.48 | 0.48 | 0.51 | ||||||
| Merck & Co. Inc. | 0.80 | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | 0.87 | 0.74 | 0.80 | 1.16 | ||||||
| Pfizer Inc. | 0.66 | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | 0.50 | 0.53 | 0.56 | 0.58 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.16 | 0.18 | 0.23 | ||||||
| Thermo Fisher Scientific Inc. | 0.70 | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | 0.85 | 0.56 | 0.51 | 0.53 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= 24,941 ÷ 21,540 = 1.16
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's capital structure over the observed periods.
- Total Debt
- Total debt exhibited a generally decreasing trend from March 2021 through September 2024, declining from approximately 30.2 billion US dollars to around 23.2 billion US dollars. However, a reversal occurred starting December 2024, with total debt increasing to approximately 26.7 billion US dollars before declining again slightly to about 24.9 billion US dollars by September 2025. This fluctuation indicates periods of debt reduction followed by increased borrowings within the latter part of the timeline.
- Total Stockholders’ Equity
- Stockholders’ equity generally increased from March 2021 through December 2023, rising from approximately 18.9 billion US dollars to a peak near 22.8 billion US dollars. Subsequently, equity declined sharply around March 2024 to about 17.5 billion US dollars but rebounded steadily through to September 2025, reaching approximately 21.5 billion US dollars. This pattern suggests a temporary contraction in equity followed by recovery and growth towards the end of the period.
- Debt to Equity Ratio
- The debt to equity ratio followed a declining trend from 1.59 in March 2021 to a low near 1.09 in December 2023, indicating a reduction in leverage levels and a strengthening equity base relative to debt. Thereafter, the ratio rose again to 1.44 by March 2024, corresponding with the drop in equity and the increase in debt, before gradually decreasing to 1.16 by September 2025. This fluctuation reflects changing financial leverage and capital structure dynamics, with leverage peaking in early 2024 and subsequently moderating.
Overall, the data suggest a strategic approach to managing debt and equity. The company appears to have initially prioritized reducing leverage by lowering debt and increasing equity. However, early 2024 saw increased leverage driven by a combination of rising debt and diminished equity, which was then followed by efforts to rebalance the capital structure towards lower leverage by the end of the observation period.
Debt to Capital
Gilead Sciences Inc., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt, net | 2,806) | 2,806) | 2,806) | 1,815) | 1,812) | 1,810) | 3,667) | 1,798) | 1,793) | 4,037) | 2,283) | 2,273) | 2,270) | 1,021) | 1,025) | 1,516) | 2,511) | 2,261) | 2,259) | ||||||
| Long-term debt, net, excluding current portion | 22,135) | 22,140) | 22,146) | 24,896) | 21,437) | 21,540) | 21,527) | 23,189) | 23,189) | 21,209) | 22,956) | 22,957) | 22,953) | 25,195) | 25,183) | 25,179) | 25,175) | 27,914) | 27,907) | ||||||
| Total debt | 24,941) | 24,946) | 24,952) | 26,711) | 23,249) | 23,350) | 25,194) | 24,987) | 24,982) | 25,246) | 25,239) | 25,230) | 25,223) | 26,216) | 26,208) | 26,695) | 27,686) | 30,175) | 30,166) | ||||||
| Total Gilead stockholders’ equity | 21,540) | 19,674) | 19,162) | 19,330) | 18,475) | 18,281) | 17,539) | 22,833) | 22,314) | 21,158) | 20,997) | 21,240) | 21,081) | 20,236) | 19,927) | 21,069) | 21,470) | 19,703) | 18,952) | ||||||
| Total capital | 46,481) | 44,620) | 44,114) | 46,041) | 41,724) | 41,631) | 42,733) | 47,820) | 47,296) | 46,404) | 46,236) | 46,470) | 46,304) | 46,452) | 46,135) | 47,764) | 49,156) | 49,878) | 49,118) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.54 | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | 0.56 | 0.56 | 0.60 | 0.61 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 1.04 | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | 0.83 | 0.86 | 0.87 | 0.86 | ||||||
| Amgen Inc. | 0.85 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | 0.83 | 0.82 | 0.80 | 0.78 | ||||||
| Bristol-Myers Squibb Co. | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | 0.55 | 0.55 | 0.55 | 0.55 | ||||||
| Danaher Corp. | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.35 | 0.32 | 0.33 | ||||||
| Eli Lilly & Co. | 0.64 | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | 0.65 | 0.69 | 0.72 | 0.70 | ||||||
| Johnson & Johnson | 0.37 | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | 0.31 | 0.33 | 0.32 | 0.34 | ||||||
| Merck & Co. Inc. | 0.44 | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | 0.46 | 0.42 | 0.44 | 0.54 | ||||||
| Pfizer Inc. | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.18 | ||||||
| Thermo Fisher Scientific Inc. | 0.41 | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | 0.46 | 0.36 | 0.34 | 0.35 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 24,941 ÷ 46,481 = 0.54
2 Click competitor name to see calculations.
- Total Debt Trend
- Total debt exhibited a general downward trend from March 2021 through September 2024, declining from roughly $30.2 billion to about $23.3 billion. However, this was followed by a marked increase in December 2024, reaching approximately $26.7 billion. After this spike, debt levels stabilized somewhat, fluctuating slightly around $24.9 billion through to the third quarter of 2025.
- Total Capital Trend
- Total capital followed a somewhat similar pattern, trending downward from nearly $49.1 billion in March 2021 to just over $41.6 billion by June 2024. Subsequently, an upward reversal occurred, with total capital rising again to approximately $46.0 billion by December 2024 and maintaining levels close to $44.1 billion to $46.5 billion thereafter.
- Debt to Capital Ratio Analysis
- The debt to capital ratio decreased from 0.61 in March 2021 to a low near 0.52 in December 2023, indicating a gradual reduction in leverage over this period. The ratio then showed a notable increase to 0.59 in March 2024, concurrent with the spike in debt, before decreasing again and stabilizing around 0.54 to 0.58 through late 2024 and 2025. These fluctuations suggest some variation in capital structure management but overall reflect a moderate gearing level.
- Summary Insights
- The data indicates a phase of deleveraging through most of the observed time frame, with both total debt and capital declining. The subsequent rise in debt and capital in late 2024 may be indicative of new financing activities or strategic investments. The debt to capital ratio's movement corroborates the changes in the capital structure, showing a temporary increase in leverage before partial reversion and stabilization. Overall, the company maintained a moderate leverage profile with some fluctuations likely tied to financing decisions or operational needs.
Debt to Assets
Gilead Sciences Inc., debt to assets calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt, net | 2,806) | 2,806) | 2,806) | 1,815) | 1,812) | 1,810) | 3,667) | 1,798) | 1,793) | 4,037) | 2,283) | 2,273) | 2,270) | 1,021) | 1,025) | 1,516) | 2,511) | 2,261) | 2,259) | ||||||
| Long-term debt, net, excluding current portion | 22,135) | 22,140) | 22,146) | 24,896) | 21,437) | 21,540) | 21,527) | 23,189) | 23,189) | 21,209) | 22,956) | 22,957) | 22,953) | 25,195) | 25,183) | 25,179) | 25,175) | 27,914) | 27,907) | ||||||
| Total debt | 24,941) | 24,946) | 24,952) | 26,711) | 23,249) | 23,350) | 25,194) | 24,987) | 24,982) | 25,246) | 25,239) | 25,230) | 25,223) | 26,216) | 26,208) | 26,695) | 27,686) | 30,175) | 30,166) | ||||||
| Total assets | 58,533) | 55,721) | 56,434) | 58,995) | 54,525) | 53,579) | 56,292) | 62,125) | 62,373) | 62,337) | 61,876) | 63,171) | 62,557) | 62,870) | 63,080) | 67,952) | 67,098) | 67,984) | 67,492) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.43 | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | 0.39 | 0.41 | 0.44 | 0.45 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | 0.52 | 0.54 | 0.56 | 0.57 | ||||||
| Amgen Inc. | 0.61 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | 0.54 | 0.58 | 0.55 | 0.52 | ||||||
| Bristol-Myers Squibb Co. | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | 0.41 | 0.40 | 0.41 | 0.41 | ||||||
| Danaher Corp. | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.29 | 0.26 | 0.27 | ||||||
| Eli Lilly & Co. | 0.37 | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | ||||||
| Johnson & Johnson | 0.24 | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | ||||||
| Merck & Co. Inc. | 0.32 | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.34 | ||||||
| Pfizer Inc. | 0.30 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.15 | ||||||
| Thermo Fisher Scientific Inc. | 0.35 | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | 0.37 | 0.29 | 0.28 | 0.28 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 24,941 ÷ 58,533 = 0.43
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning the company's leverage and asset base over the specified periods.
- Total Debt
- Total debt remained relatively stable from March 2021 through December 2023, fluctuating between approximately $24.9 billion and $30.2 billion. A gradual decline is evident from March 2021 to December 2022, where debt decreased from about $30.2 billion to approximately $25.2 billion. However, from December 2023 onwards, debt levels appeared more volatile, with a notable dip to around $23.3 billion by June 2024 followed by a sharp increase to nearly $26.7 billion by December 2024. Subsequently, it somewhat stabilized around $24.9 billion through the third quarter of 2025.
- Total Assets
- Total assets demonstrated a generally downward trend across the entire timeframe, decreasing from approximately $67.5 billion in early 2021 to a low point near $53.6 billion by mid-2024. A moderate recovery phase followed, with assets rising back toward $58.5 billion by the third quarter of 2025. This trajectory indicates a contraction in the asset base for a significant portion of the period, with signs of stabilization and modest growth in the final year observed.
- Debt to Assets Ratio
- The debt to assets ratio consistently ranged between 0.39 and 0.45 across all quarters, reflecting a moderate leverage position. Initially, this ratio declined from 0.45 in early 2021 to a trough around 0.39-0.40 by the end of 2021 and into 2022, suggesting improved financial structure with relatively lower debt compared to assets. However, from 2023 onwards, the ratio rose again to approximately 0.44-0.45, indicative of increased leverage primarily driven by the aforementioned decline and partial recovery pattern in the asset base combined with fluctuations in the debt level.
In summary, the company experienced a period of debt reduction and asset contraction followed by increased debt volatility and asset stabilization. The net effect on leverage shows a cyclical pattern, with moderate leverage levels maintained but trending slightly higher in the later quarters. This suggests careful financial management balancing between debt and asset utilization amid changing economic or business conditions.
Financial Leverage
Gilead Sciences Inc., financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 58,533) | 55,721) | 56,434) | 58,995) | 54,525) | 53,579) | 56,292) | 62,125) | 62,373) | 62,337) | 61,876) | 63,171) | 62,557) | 62,870) | 63,080) | 67,952) | 67,098) | 67,984) | 67,492) | ||||||
| Total Gilead stockholders’ equity | 21,540) | 19,674) | 19,162) | 19,330) | 18,475) | 18,281) | 17,539) | 22,833) | 22,314) | 21,158) | 20,997) | 21,240) | 21,081) | 20,236) | 19,927) | 21,069) | 21,470) | 19,703) | 18,952) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 2.72 | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | 3.23 | 3.13 | 3.45 | 3.56 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | — | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | 9.51 | 10.99 | 11.77 | 10.98 | ||||||
| Amgen Inc. | 9.37 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | 9.13 | 7.91 | 7.25 | 6.70 | ||||||
| Bristol-Myers Squibb Co. | 5.22 | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | 3.04 | 2.98 | 3.01 | 2.99 | ||||||
| Danaher Corp. | 1.56 | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | 1.84 | 1.90 | 1.82 | 1.87 | ||||||
| Eli Lilly & Co. | 4.83 | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | 5.44 | 6.21 | 7.42 | 6.79 | ||||||
| Johnson & Johnson | 2.43 | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | 2.46 | 2.55 | 2.54 | 2.62 | ||||||
| Merck & Co. Inc. | 2.50 | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | 2.77 | 2.61 | 2.72 | 3.37 | ||||||
| Pfizer Inc. | 2.25 | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | 2.35 | 2.37 | 2.43 | 2.31 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | 1.36 | 1.37 | 1.42 | 1.48 | ||||||
| Thermo Fisher Scientific Inc. | 2.02 | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | 2.33 | 1.90 | 1.84 | 1.88 | ||||||
| Vertex Pharmaceuticals Inc. | 1.44 | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | 1.33 | 1.32 | 1.33 | 1.35 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 58,533 ÷ 21,540 = 2.72
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibited a fluctuating trend over the periods analyzed. Initially, there was a gradual decrease from around 67,492 million US dollars in the first quarter of 2021 to a lower level near 62,171 million by the end of 2022. Following this period, a further decline is evident, reaching a low point of approximately 53,579 million in the mid-2024. However, an upward correction took place in the second half of 2024 and into 2025, with assets rising again to approach 58,533 million by the third quarter of 2025. Overall, total assets show a pattern of decline followed by partial recovery.
- Total Gilead Stockholders’ Equity
- Stockholders’ equity demonstrated a moderate increase during the first three quarters of 2021, growing from roughly 18,952 million to 21,470 million US dollars. A slight contraction was observed toward the year-end 2021, but it remained relatively stable through 2022 and early 2023, fluctuating around the 21,000 to 22,800 million range. Starting in 2024, equity levels experienced a significant decline, bottoming out near 17,539 million in the first quarter of 2024. Subsequent quarters of 2024 and 2025 show a recovery trajectory, with stockholders’ equity increasing to approximately 21,540 million by the third quarter of 2025. This pattern suggests some volatility with a resilient recovery in recent periods.
- Financial Leverage
- The financial leverage ratio trended downward from 3.56 in early 2021 to a lower level of approximately 2.72 by the end of 2022, suggesting a gradual reduction in reliance on debt or an improvement in equity relative to total assets during that time. In early 2024, the ratio peaked again at 3.21, indicating an increase in leverage, before settling back down to around 2.72 by the third quarter of 2025. The fluctuating leverage implies shifts in the company’s capital structure strategy or responses to changing asset and equity bases over the time frame observed.
Interest Coverage
Gilead Sciences Inc., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) attributable to Gilead | 3,052) | 1,960) | 1,315) | 1,783) | 1,253) | 1,614) | (4,170) | 1,430) | 2,180) | 1,045) | 1,010) | 1,640) | 1,789) | 1,144) | 19) | 382) | 2,592) | 1,522) | 1,729) | ||||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | (13) | (8) | (6) | (25) | (7) | (3) | (9) | (7) | (6) | (6) | (5) | (7) | ||||||
| Add: Income tax expense | 589) | 469) | 334) | 384) | (297) | 439) | (316) | 236) | 146) | 549) | 315) | 398) | 646) | 368) | (164) | 383) | 852) | 300) | 542) | ||||||
| Add: Interest expense | 256) | 254) | 260) | 248) | 238) | 237) | 254) | 252) | 232) | 230) | 230) | 226) | 229) | 242) | 238) | 238) | 250) | 256) | 257) | ||||||
| Earnings before interest and tax (EBIT) | 3,897) | 2,683) | 1,909) | 2,415) | 1,194) | 2,290) | (4,232) | 1,905) | 2,550) | 1,818) | 1,530) | 2,257) | 2,661) | 1,745) | 86) | 997) | 3,688) | 2,073) | 2,521) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 10.71 | 8.20 | 7.94 | 1.71 | 1.18 | 2.58 | 2.11 | 8.27 | 8.88 | 9.03 | 8.84 | 7.22 | 5.80 | 6.73 | 6.97 | 9.27 | 10.06 | 7.61 | 2.93 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Amgen Inc. | 3.89 | 3.53 | 3.18 | 2.46 | 2.45 | 2.10 | 2.38 | 3.73 | 4.54 | 5.43 | 6.51 | 6.22 | 6.83 | 6.97 | 6.40 | 6.60 | 6.46 | 6.48 | 7.64 | ||||||
| Danaher Corp. | 16.41 | 15.01 | 16.80 | 17.71 | 16.11 | 17.61 | 17.81 | 18.64 | 23.66 | 29.65 | 35.60 | 40.30 | 41.32 | 35.26 | 33.54 | 32.92 | 28.74 | 25.87 | 21.54 | ||||||
| Johnson & Johnson | 36.24 | 33.48 | 34.09 | 23.10 | 23.92 | 26.40 | 29.06 | 20.51 | 19.09 | 23.89 | 31.49 | 79.71 | 141.63 | 160.27 | 164.15 | 125.46 | 94.27 | 87.06 | 73.87 | ||||||
| Regeneron Pharmaceuticals Inc. | 123.21 | 134.19 | 105.27 | 87.59 | 79.88 | 69.47 | 57.85 | 58.52 | 61.70 | 69.61 | 73.97 | 82.80 | 108.62 | 116.35 | 163.24 | 163.75 | 139.74 | 104.12 | 68.20 | ||||||
| Thermo Fisher Scientific Inc. | 6.19 | 6.09 | 6.25 | 6.03 | 5.62 | 5.62 | 5.53 | 5.54 | 5.98 | 6.64 | 8.28 | 11.56 | 13.59 | 15.70 | 16.73 | 17.49 | 19.94 | 19.52 | 17.58 | ||||||
| Vertex Pharmaceuticals Inc. | 348.55 | 258.29 | -11.94 | 9.12 | 7.76 | 6.14 | 111.61 | 100.32 | 96.54 | 90.90 | 82.27 | 78.23 | 70.08 | 66.72 | 48.17 | 45.40 | 44.83 | 40.33 | 55.95 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (3,897 + 2,683 + 1,909 + 2,415)
÷ (256 + 254 + 260 + 248)
= 10.71
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over the observed periods.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures demonstrate considerable volatility throughout the timeline. Initially, EBIT showed a strong performance with a peak of 3,688 million US dollars in September 2021, followed by a significant decline reaching a low of 86 million US dollars in March 2022. A recovery phase ensued, with EBIT increasing to 2,661 million by September 2022, before experiencing another downturn and irregular pattern towards the end of 2023. Notably, a substantial negative EBIT of -4,232 million was recorded in March 2024, indicating a marked adverse event or extraordinary expense during that quarter. Subsequent quarters reflected recovery with EBIT rebounding to a high of 3,897 million by September 2025. Overall, EBIT demonstrates a cyclical pattern with intermittent peaks and troughs, reflecting variability in operational profitability over the quarters.
- Interest Expense
- Interest expense remained relatively stable over the entire period, fluctuating only slightly between 226 million and 260 million US dollars. This stability suggests consistent debt servicing costs, indicating the company maintained a relatively steady level of debt or financing costs during these periods.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet its interest obligations from operating earnings, showed large variations in alignment with EBIT changes. Initially, the ratio increased sharply from 2.93 to a peak above 10 in September 2021, reflecting strong earnings relative to interest expenses. During early 2022, the ratio declined but stayed above 5, indicating moderate coverage ability despite the decline in EBIT. A pronounced dip occurred in March 2024, coinciding with the negative EBIT, where the ratio fell to a low of 1.18, close to the threshold of concern for debt servicing reliability. After this trough, the ratio improved steadily in subsequent quarters, reaching its highest point of 10.71 by September 2025. This trend underscores the direct impact of EBIT fluctuations on the company’s capacity to cover interest expenses, with periods of financial strain followed by recovery.
In summary, the company experienced substantial variability in operating earnings with periods of strong profitability interrupted by significant downturns, including one extreme negative quarter. Despite stable interest expenses, the ability to cover interest costs varied widely, largely dependent on the operational earnings performance. The data suggests potential episodic challenges impacting profits, but overall, the company demonstrated resilience and recovery capability over the longer term.