Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Long-term Activity Ratios (Summary)
Gilead Sciences Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 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).
An analysis of long-term activity ratios reveals generally stable performance with some indications of improving asset utilization over the observed period. The ratios suggest a consistent ability to generate revenue from invested assets, though variations exist across different measures of asset turnover.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a relatively stable trend, fluctuating between 4.93 and 5.28 over the five-year period. A slight increase is observed from 2022 to 2024, followed by a minor decrease in the most recent year. This indicates a consistent, though not dramatically changing, efficiency in generating sales from fixed assets.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When including operating lease right-of-use assets, the net fixed asset turnover ratio exhibits a similar pattern to the standard calculation, remaining within a narrow range of 4.51 to 4.83. The inclusion of these assets results in lower turnover values, suggesting that the leased assets contribute less to revenue generation relative to their cost compared to owned fixed assets. A modest increase is noted between 2022 and 2024, followed by a slight decline in 2025.
- Total Asset Turnover
- The total asset turnover ratio shows a clear upward trend, increasing from 0.40 in 2021 to 0.49 in 2025. This suggests an improving ability to generate sales from all assets, indicating enhanced overall asset utilization efficiency. The most significant increase occurs between 2023 and 2024.
- Equity Turnover
- The equity turnover ratio experiences more volatility than the asset turnover ratios. It declines from 1.28 in 2021 to 1.18 in 2023, then increases substantially to 1.48 in 2024 before decreasing to 1.27 in 2025. This suggests a fluctuating relationship between revenue and shareholder equity, potentially influenced by changes in financial leverage or equity structure. The large increase in 2024 warrants further investigation to understand the underlying drivers.
Overall, the observed trends suggest a company that maintains consistent efficiency in utilizing its fixed assets, while demonstrating improving efficiency in utilizing its total asset base. The equity turnover ratio presents a more complex picture, with fluctuations that require further scrutiny.
Net Fixed Asset Turnover
Gilead Sciences Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Product sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally stable pattern over the five-year period, with moderate fluctuations. Product sales demonstrate a slight overall increase, while net property, plant, and equipment show a gradual rise. The interplay between these two factors shapes the observed turnover ratio trend.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 5.27 in 2021 to 4.93 in 2022, indicating a slightly less efficient utilization of fixed assets to generate sales. A subsequent increase to 5.07 in 2023 suggests a partial recovery in efficiency. Further improvement was observed in 2024, with the ratio reaching 5.28, surpassing the 2021 level. The ratio experienced a minor decline in 2025, settling at 5.16. This suggests a generally consistent ability to generate sales from its fixed asset base, with a peak in efficiency in 2024.
Product sales remained relatively consistent between 2021 and 2023, fluctuating around the $27 billion mark. A noticeable increase in product sales occurred in 2024 and 2025, reaching $28.61 billion and $28.915 billion respectively. This growth in sales likely contributed to the improved turnover ratio observed in 2024.
- Property, Plant & Equipment, Net
- Net property, plant, and equipment increased steadily throughout the period, from $5.121 billion in 2021 to $5.606 billion in 2025. This consistent investment in fixed assets, coupled with the sales trends, explains the observed fluctuations in the net fixed asset turnover ratio. The increase in fixed assets without a proportional increase in sales would naturally lead to a lower turnover ratio, and vice versa.
Overall, the company demonstrates a reasonable and relatively stable net fixed asset turnover ratio. The slight increase in the ratio in 2024, coinciding with increased product sales, is a positive indicator. The modest decline in 2025 does not represent a significant cause for concern given the overall trend and the continued investment in fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Gilead Sciences Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use assets, net (classified as Other long-term assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Product sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property, plant, and equipment net of accumulated depreciation and including operating lease right-of-use assets, demonstrates a relatively stable pattern over the five-year period. Product sales also exhibit a generally stable trend with a slight increase in the later years.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- The ratio decreased from 4.77 in 2021 to 4.51 in 2022, representing a decline in the efficiency with which fixed assets generated sales. A modest recovery to 4.57 was observed in 2023. Further improvement occurred in 2024, with the ratio reaching 4.83, indicating increased asset utilization. The ratio experienced a slight decrease in 2025, settling at 4.71. Overall, the ratio fluctuated within a narrow range, suggesting consistent, though not dramatically changing, asset efficiency.
Product sales remained relatively consistent between 2021 and 2023, fluctuating around $27 billion. A noticeable increase in product sales occurred in 2024, reaching $28.61 billion, and continued into 2025 with sales of $28.915 billion. This sales growth, coupled with the slight increase in net fixed assets, contributed to the improved net fixed asset turnover ratio observed in 2024.
The relatively stable net fixed asset turnover ratio, in conjunction with the modest growth in product sales, suggests a consistent operational approach to asset utilization. The slight dip in the ratio in the final year warrants monitoring to determine if it represents a temporary fluctuation or the beginning of a new trend.
Total Asset Turnover
Gilead Sciences Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Product sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits an increasing trend over the five-year period. While product sales demonstrate relative stability, total assets have decreased, contributing to the observed ratio movement.
- Total Asset Turnover
- The total asset turnover ratio began at 0.40 in 2021. It increased to 0.43 in both 2022 and 2023, indicating a slightly improved efficiency in generating sales from its asset base. This upward trend continued, with the ratio reaching 0.48 in 2024 and further increasing to 0.49 in 2025. This suggests a growing ability to generate revenue per dollar of assets.
- The increase in the ratio is primarily driven by a decrease in total assets. Product sales remained relatively consistent, fluctuating between US$26,934 million and US$28,915 million during the period. Total assets, however, decreased from US$67,952 million in 2021 to US$59,023 million in 2025. This reduction in the asset base, while sales remained stable, naturally results in a higher turnover ratio.
- The consistent increase in the ratio, despite stable sales, suggests improved asset management or a strategic reduction in less productive assets. Further investigation would be required to determine the specific drivers behind the asset reduction and its impact on operational efficiency.
In summary, the company demonstrates improving efficiency in utilizing its assets to generate sales, as evidenced by the increasing total asset turnover ratio. This improvement is largely attributable to a reduction in the total asset base rather than significant growth in product sales.
Equity Turnover
Gilead Sciences Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Total Gilead stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Product sales ÷ Total Gilead stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates fluctuations, indicating a changing relationship between product sales and total stockholders’ equity. While product sales exhibit relative stability with a slight upward trend towards the end of the period, the equity turnover ratio shows more pronounced variability.
- Equity Turnover Ratio Trend
- The equity turnover ratio began at 1.28 in 2021 and remained relatively consistent at 1.27 in 2022. A decrease to 1.18 was observed in 2023, suggesting a reduced efficiency in generating sales from equity investment. This was followed by a significant increase to 1.48 in 2024, indicating improved efficiency. The ratio then decreased to 1.27 in 2025, returning to a level similar to that of 2021 and 2022.
The decrease in the equity turnover ratio in 2023 coincided with a slight decrease in product sales and an increase in total stockholders’ equity. This suggests that the company’s equity base grew at a faster rate than its sales during that year. Conversely, the substantial increase in 2024 occurred alongside an increase in product sales and a decrease in total stockholders’ equity, implying a more effective utilization of equity to generate revenue. The return to a ratio of 1.27 in 2025, despite further sales growth, suggests equity increased proportionally, moderating the turnover rate.
- Relationship to Product Sales
- Product sales remained relatively stable between 2021 and 2023, fluctuating around US$27 billion. A noticeable increase in product sales occurred in 2024 and 2025, reaching US$28.61 billion and US$28.915 billion respectively. However, the equity turnover ratio did not consistently increase in tandem with sales, indicating that changes in equity levels significantly influenced the ratio’s overall trend.
The fluctuations in the equity turnover ratio suggest that the company’s capital structure and equity management practices have been dynamic over the analyzed period. The observed changes warrant further investigation to understand the underlying drivers, such as share repurchases, dividend payouts, or new equity issuances, and their impact on the company’s financial performance.