Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Gilead Sciences Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
The long-term activity ratios indicate a period of moderate volatility followed by an improvement in asset utilization efficiency, peaking in 2024 before entering a phase of stabilization. The overall trend suggests a strategic optimization of the asset base to generate revenue, although the return to previous levels in certain metrics toward 2026 indicates a normalization of operational efficiency.
- Net Fixed Asset Turnover
- A cyclical trend is observed, beginning with a gradual decline from 5.18 in March 2022 to a low of 4.88 in March 2023. This was followed by a sustained recovery phase, reaching a peak of 5.28 by December 2024. The ratio subsequently stabilized, ending the period at 5.19 in March 2026, suggesting a consistent ability to leverage fixed assets to drive sales.
- Total Asset Turnover
- Asset utilization remained stagnant at 0.43 through much of 2022 before exhibiting an upward trajectory. A significant improvement occurred between March 2024 and June 2024, where the ratio climbed from 0.48 to 0.52. While there were intermittent fluctuations, the ratio remained elevated compared to the 2022 baseline, closing at 0.52 in March 2026, which reflects an overall increase in the efficiency of the total asset base.
- Equity Turnover
- This metric exhibited the highest degree of volatility among the activity ratios. After a steady decline from 1.37 in March 2022 to 1.18 in December 2023, a sharp increase to 1.56 was recorded in March 2024. This peak was followed by a gradual contraction throughout 2025 and early 2026, with the ratio descending to 1.24 by March 2026. This pattern suggests a period of intense revenue generation relative to equity in 2024, followed by a gradual return to historical averages.
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Net Fixed Asset Turnover
Gilead Sciences Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Product sales | 6,946) | 7,903) | 7,345) | 7,054) | 6,613) | 7,536) | 7,515) | 6,912) | 6,647) | 7,070) | 6,994) | 6,564) | 6,306) | 7,332) | 6,978) | 6,138) | 6,534) | ||||||
| Property, plant and equipment, net | 5,638) | 5,606) | 5,500) | 5,459) | 5,421) | 5,414) | 5,391) | 5,346) | 5,321) | 5,317) | 5,572) | 5,540) | 5,479) | 5,475) | 5,349) | 5,299) | 5,253) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 5.19 | 5.16 | 5.19 | 5.26 | 5.27 | 5.28 | 5.22 | 5.17 | 5.13 | 5.07 | 4.88 | 4.91 | 4.88 | 4.93 | 5.01 | 5.13 | 5.18 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 11.05 | 10.87 | 10.88 | 11.04 | 10.95 | 10.97 | 10.80 | 10.95 | 10.92 | 10.89 | 11.18 | 11.33 | 11.51 | 11.76 | 11.82 | 11.57 | 11.18 | ||||||
| Amgen Inc. | 4.32 | 4.44 | 4.78 | 4.89 | 4.91 | 4.89 | 5.06 | 4.85 | 4.70 | 4.53 | 4.61 | 4.58 | 4.56 | 4.57 | 4.73 | 4.77 | 4.75 | ||||||
| Bristol-Myers Squibb Co. | 6.33 | 6.39 | 6.54 | 6.47 | 6.60 | 6.77 | 6.87 | 6.79 | 6.75 | 6.77 | 6.93 | 7.11 | 7.30 | 7.38 | 7.74 | 7.90 | 7.77 | ||||||
| Danaher Corp. | 4.53 | 4.44 | 4.51 | 4.52 | 4.66 | 4.78 | 4.90 | 5.08 | 5.20 | 5.25 | 6.01 | 6.68 | 7.31 | 7.96 | 8.40 | 8.12 | 7.94 | ||||||
| Eli Lilly & Co. | 2.72 | 2.64 | 2.66 | 2.59 | 2.65 | 2.63 | 2.53 | 2.62 | 2.64 | 2.64 | 2.70 | 2.62 | 2.63 | 2.81 | 3.14 | 3.18 | 3.22 | ||||||
| Johnson & Johnson | 4.14 | 4.07 | 4.13 | 4.13 | 4.28 | 4.33 | 4.28 | 4.38 | 4.36 | 4.28 | 4.65 | 4.37 | 4.58 | 4.79 | 5.29 | 5.21 | 5.07 | ||||||
| Merck & Co. Inc. | 2.59 | 2.57 | 2.51 | 2.52 | 2.58 | 2.70 | 2.69 | 2.69 | 2.66 | 2.61 | 2.63 | 2.62 | 2.66 | 2.77 | 2.89 | 2.85 | 2.73 | ||||||
| Pfizer Inc. | 3.26 | 3.24 | 3.33 | 3.40 | 3.40 | 3.46 | 3.26 | 2.97 | 2.98 | 3.14 | 3.88 | 4.48 | 5.46 | 6.17 | 6.47 | 6.64 | 6.12 | ||||||
| Regeneron Pharmaceuticals Inc. | 2.83 | 2.80 | 2.85 | 2.94 | 3.00 | 3.09 | 3.12 | 3.13 | 3.10 | 3.16 | 3.27 | 3.23 | 3.19 | 3.23 | 3.70 | 3.91 | 4.64 | ||||||
| Thermo Fisher Scientific Inc. | 4.24 | 4.22 | 4.30 | 4.48 | 4.60 | 4.61 | 4.50 | 4.56 | 4.56 | 4.54 | 4.74 | 4.68 | 4.68 | 4.84 | 5.12 | 5.02 | 4.87 | ||||||
| Vertex Pharmaceuticals Inc. | 7.60 | 7.89 | 8.23 | 8.55 | 8.57 | 8.98 | 9.51 | 8.61 | 8.68 | 8.51 | 8.59 | 8.47 | 8.28 | 8.06 | 7.78 | 7.59 | 7.18 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Net fixed asset turnover
= (Product salesQ1 2026
+ Product salesQ4 2025
+ Product salesQ3 2025
+ Product salesQ2 2025)
÷ Property, plant and equipment, net
= (6,946 + 7,903 + 7,345 + 7,054)
÷ 5,638 = 5.19
2 Click competitor name to see calculations.
The analysis of investment activity reveals a period of fluctuation in asset efficiency followed by a phase of stabilization and improvement in the utilization of fixed assets to generate revenue.
- Net Fixed Asset Turnover Trends
- An initial decline in the net fixed asset turnover ratio is observed from March 2022 (5.18) through March 2023, where it reached a minimum of 4.88. This downward trend suggests a temporary misalignment where the incremental growth in net property, plant, and equipment outpaced the growth in product sales.
- A recovery phase occurred between March 2023 and December 2024, during which the ratio climbed to a peak of 5.28. This improvement is attributed to a significant increase in product sales, which rose from $6.3 billion in March 2023 to $7.5 billion by December 2024, while the net fixed asset base remained relatively stable.
- The period from December 2024 to March 2026 indicates a state of equilibrium, with the ratio fluctuating narrowly between 5.16 and 5.27. This suggests that a sustainable balance has been achieved between capital investment in physical infrastructure and sales output.
- Fixed Asset Investment Stability
- Net property, plant, and equipment demonstrated consistent, marginal growth throughout the analyzed period, increasing from $5.25 billion in March 2022 to $5.64 billion by March 2026. The absence of significant volatility in the asset base implies a strategy centered on steady capacity maintenance rather than aggressive capital expansion.
- Revenue Correlation and Efficiency
- Product sales displayed higher volatility than the asset base, with notable peaks in the fourth quarters of 2024 and 2025. Because the net fixed asset base remained stable, these peaks in sales directly drove the corresponding increases in the turnover ratio, indicating that revenue growth is the primary driver of asset efficiency gains during this period.
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Total Asset Turnover
Gilead Sciences Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Product sales | 6,946) | 7,903) | 7,345) | 7,054) | 6,613) | 7,536) | 7,515) | 6,912) | 6,647) | 7,070) | 6,994) | 6,564) | 6,306) | 7,332) | 6,978) | 6,138) | 6,534) | ||||||
| Total assets | 56,278) | 59,023) | 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.52 | 0.49 | 0.49 | 0.52 | 0.51 | 0.48 | 0.52 | 0.52 | 0.48 | 0.43 | 0.44 | 0.44 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | 0.46 | 0.46 | 0.45 | 0.43 | 0.42 | 0.42 | 0.39 | 0.39 | 0.37 | 0.40 | 0.40 | 0.41 | 0.42 | 0.42 | 0.41 | 0.40 | 0.40 | ||||||
| Amgen Inc. | 0.38 | 0.39 | 0.38 | 0.38 | 0.37 | 0.35 | 0.34 | 0.32 | 0.30 | 0.28 | 0.28 | 0.28 | 0.28 | 0.38 | 0.38 | 0.41 | 0.41 | ||||||
| Bristol-Myers Squibb Co. | 0.56 | 0.54 | 0.50 | 0.50 | 0.52 | 0.52 | 0.51 | 0.49 | 0.46 | 0.47 | 0.49 | 0.48 | 0.49 | 0.48 | 0.48 | 0.47 | 0.46 | ||||||
| Danaher Corp. | 0.30 | 0.29 | 0.30 | 0.29 | 0.30 | 0.31 | 0.29 | 0.30 | 0.28 | 0.28 | 0.29 | 0.33 | 0.35 | 0.37 | 0.39 | 0.38 | 0.36 | ||||||
| Eli Lilly & Co. | 0.62 | 0.58 | 0.52 | 0.53 | 0.55 | 0.57 | 0.54 | 0.54 | 0.56 | 0.53 | 0.55 | 0.54 | 0.52 | 0.58 | 0.62 | 0.62 | 0.62 | ||||||
| Johnson & Johnson | 0.48 | 0.47 | 0.48 | 0.47 | 0.46 | 0.49 | 0.49 | 0.48 | 0.50 | 0.51 | 0.53 | 0.47 | 0.47 | 0.51 | 0.55 | 0.54 | 0.53 | ||||||
| Merck & Co. Inc. | 0.51 | 0.47 | 0.50 | 0.54 | 0.56 | 0.55 | 0.54 | 0.55 | 0.58 | 0.56 | 0.56 | 0.56 | 0.54 | 0.54 | 0.55 | 0.53 | 0.51 | ||||||
| Pfizer Inc. | 0.30 | 0.30 | 0.30 | 0.31 | 0.30 | 0.30 | 0.28 | 0.26 | 0.25 | 0.26 | 0.32 | 0.36 | 0.48 | 0.51 | 0.51 | 0.52 | 0.50 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.37 | 0.35 | 0.35 | 0.37 | 0.38 | 0.38 | 0.37 | 0.37 | 0.38 | 0.40 | 0.41 | 0.41 | 0.41 | 0.42 | 0.50 | 0.52 | 0.63 | ||||||
| Thermo Fisher Scientific Inc. | 0.40 | 0.40 | 0.42 | 0.43 | 0.43 | 0.44 | 0.42 | 0.43 | 0.44 | 0.43 | 0.45 | 0.46 | 0.46 | 0.46 | 0.49 | 0.47 | 0.44 | ||||||
| Vertex Pharmaceuticals Inc. | 0.46 | 0.47 | 0.47 | 0.48 | 0.49 | 0.49 | 0.48 | 0.51 | 0.43 | 0.43 | 0.44 | 0.47 | 0.49 | 0.49 | 0.52 | 0.54 | 0.56 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Total asset turnover
= (Product salesQ1 2026
+ Product salesQ4 2025
+ Product salesQ3 2025
+ Product salesQ2 2025)
÷ Total assets
= (6,946 + 7,903 + 7,345 + 7,054)
÷ 56,278 = 0.52
2 Click competitor name to see calculations.
The analysis of total asset turnover reveals a distinct transition in asset utilization efficiency. Between March 2022 and December 2023, the turnover ratio remained largely stagnant, fluctuating minimally between 0.43 and 0.44. However, starting in March 2024, a marked increase in the ratio is observed, with values shifting to a higher range between 0.48 and 0.52 through March 2026.
- Revenue Trends
- Product sales exhibit periodic volatility but maintain an overall upward trajectory. Sales grew from a baseline of approximately 6.5 billion USD in early 2022 to a peak of 7.9 billion USD by December 2025. While quarterly fluctuations are present, the general growth in top-line revenue contributed to the underlying support for improved turnover ratios.
- Asset Base Dynamics
- A significant contraction in the total asset base occurred in the first half of 2024. Total assets, which were consistently held above 61 billion USD from March 2022 through December 2023, declined sharply to a low of 53.6 billion USD by June 2024. Although assets subsequently recovered to fluctuate between 55 billion USD and 59 billion USD, they remained substantially lower than the 2022-2023 levels.
- Asset Turnover Correlation
- The improvement in the total asset turnover ratio is more closely correlated with the reduction in the asset base than with the increase in product sales. The jump from 0.43 to 0.52 coincides precisely with the period of asset contraction in early 2024. This indicates that the organization achieved higher efficiency not solely through revenue growth, but by operating with a leaner asset structure.
- Long-term Stability
- Following the volatility of 2024, the turnover ratio stabilized in a higher bracket. The ratio consistently remained at or above 0.48 from March 2024 through March 2026, suggesting a permanent shift in the operational scale or a strategic realignment of the balance sheet to optimize productivity per dollar of assets employed.
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Equity Turnover
Gilead Sciences Inc., equity turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Product sales | 6,946) | 7,903) | 7,345) | 7,054) | 6,613) | 7,536) | 7,515) | 6,912) | 6,647) | 7,070) | 6,994) | 6,564) | 6,306) | 7,332) | 6,978) | 6,138) | 6,534) | ||||||
| Total Gilead stockholders’ equity | 23,515) | 22,703) | 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 1.24 | 1.27 | 1.33 | 1.46 | 1.49 | 1.48 | 1.52 | 1.51 | 1.56 | 1.18 | 1.22 | 1.28 | 1.27 | 1.27 | 1.27 | 1.34 | 1.37 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | 40.40 | 16.94 | 9.21 | 8.11 | 6.79 | 5.24 | 4.56 | 4.35 | 4.27 | 3.36 | 3.62 | 3.91 | 3.48 | ||||||
| Amgen Inc. | 3.86 | 4.06 | 3.59 | 4.51 | 5.28 | 5.45 | 4.14 | 4.99 | 5.61 | 4.32 | 3.35 | 3.73 | 4.66 | 6.77 | 6.71 | 10.17 | 26.68 | ||||||
| Bristol-Myers Squibb Co. | 2.42 | 2.61 | 2.59 | 2.74 | 2.74 | 2.96 | 2.77 | 2.73 | 2.76 | 1.53 | 1.55 | 1.41 | 1.44 | 1.49 | 1.43 | 1.45 | 1.49 | ||||||
| Danaher Corp. | 0.47 | 0.47 | 0.48 | 0.46 | 0.47 | 0.48 | 0.46 | 0.47 | 0.44 | 0.45 | 0.49 | 0.54 | 0.58 | 0.63 | 0.67 | 0.66 | 0.65 | ||||||
| Eli Lilly & Co. | 2.32 | 2.46 | 2.50 | 2.91 | 3.11 | 3.17 | 2.87 | 2.87 | 2.80 | 3.17 | 2.86 | 2.67 | 2.47 | 2.68 | 2.90 | 3.40 | 3.14 | ||||||
| Johnson & Johnson | 1.19 | 1.16 | 1.16 | 1.15 | 1.14 | 1.24 | 1.25 | 1.21 | 1.22 | 1.24 | 1.23 | 1.20 | 1.30 | 1.24 | 1.29 | 1.25 | 1.27 | ||||||
| Merck & Co. Inc. | 1.43 | 1.24 | 1.24 | 1.30 | 1.32 | 1.39 | 1.42 | 1.43 | 1.52 | 1.60 | 1.44 | 1.51 | 1.24 | 1.29 | 1.33 | 1.32 | 1.32 | ||||||
| Pfizer Inc. | 0.70 | 0.72 | 0.68 | 0.72 | 0.69 | 0.72 | 0.65 | 0.64 | 0.61 | 0.67 | 0.71 | 0.79 | 0.92 | 1.05 | 1.08 | 1.16 | 1.12 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.47 | 0.46 | 0.46 | 0.47 | 0.48 | 0.48 | 0.47 | 0.48 | 0.49 | 0.51 | 0.53 | 0.53 | 0.53 | 0.54 | 0.64 | 0.69 | 0.83 | ||||||
| Thermo Fisher Scientific Inc. | 0.87 | 0.83 | 0.86 | 0.86 | 0.87 | 0.86 | 0.86 | 0.89 | 0.93 | 0.92 | 0.96 | 0.99 | 1.04 | 1.02 | 1.01 | 1.01 | 1.00 | ||||||
| Vertex Pharmaceuticals Inc. | 0.63 | 0.64 | 0.68 | 0.66 | 0.67 | 0.67 | 0.68 | 0.70 | 0.55 | 0.56 | 0.58 | 0.61 | 0.64 | 0.64 | 0.67 | 0.70 | 0.73 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Equity turnover
= (Product salesQ1 2026
+ Product salesQ4 2025
+ Product salesQ3 2025
+ Product salesQ2 2025)
÷ Total Gilead stockholders’ equity
= (6,946 + 7,903 + 7,345 + 7,054)
÷ 23,515 = 1.24
2 Click competitor name to see calculations.
The analysis of equity turnover reveals a period of volatility influenced primarily by fluctuations in the stockholders' equity base rather than organic shifts in sales efficiency. While product sales exhibit a general long-term growth trajectory, the equity turnover ratio experienced a significant temporary surge in early 2024, followed by a gradual normalization as the equity base recovered.
- Product Sales Performance
- Revenue from product sales demonstrates a steady upward trend over the analyzed period. After fluctuating between $6.1 billion and $7.3 billion throughout 2022, sales grew consistently through 2024 and 2025, reaching a peak of $7.9 billion in December 2025. This growth indicates a sustained increase in the company's ability to generate top-line revenue.
- Stockholders' Equity Volatility
- The equity base experienced a notable disruption in early 2024. After increasing steadily from $19.9 billion in March 2022 to a peak of $22.8 billion in December 2023, total equity dropped sharply to $17.5 billion by March 31, 2024. Following this contraction, a consistent recovery phase is observed, with equity levels climbing steadily to reach $23.5 billion by March 31, 2026.
- Equity Turnover Interpretation
- The equity turnover ratio shows a strong correlation with the changes in the equity base. A gradual decline was observed from March 2022 (1.37) to December 2023 (1.18). The ratio then spiked to 1.56 in March 2024, a change driven by the reduction in total stockholders' equity rather than a proportional increase in sales. As the equity base was rebuilt from 2024 through 2026, the turnover ratio trended downward, returning to 1.24 by March 31, 2026. This pattern suggests that the temporary increase in efficiency was a mathematical result of a smaller capital base rather than an operational improvement in asset utilization.
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