Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Gilead Sciences Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Gilead Sciences Inc. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Gilead Sciences Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Gilead Sciences Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Gilead Sciences Inc. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Gilead Sciences Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Gross Profit Margin
Gilead Sciences Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit on product sales | 20,436) | 21,325) | 20,407) | 19,783) | 17,444) | |
| Product sales | 26,934) | 26,982) | 27,008) | 24,355) | 22,119) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 75.87% | 79.03% | 75.56% | 81.23% | 78.86% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 62.42% | 70.00% | 68.96% | 66.41% | 77.64% | |
| Amgen Inc. | 68.60% | 74.17% | 73.44% | 74.59% | 80.38% | |
| Bristol-Myers Squibb Co. | 76.24% | 78.04% | 78.57% | 72.31% | 69.10% | |
| Eli Lilly & Co. | 79.25% | 76.77% | 74.18% | 77.66% | 78.85% | |
| Johnson & Johnson | 68.82% | 67.26% | 68.16% | 65.58% | 66.42% | |
| Merck & Co. Inc. | 73.17% | 70.63% | 72.02% | 67.74% | 69.87% | |
| Pfizer Inc. | 57.34% | 65.77% | 62.08% | 79.26% | 80.25% | |
| Regeneron Pharmaceuticals Inc. | 86.16% | 87.18% | 84.83% | 86.82% | 90.05% | |
| Thermo Fisher Scientific Inc. | 39.90% | 42.24% | 50.08% | 49.67% | 44.35% | |
| Zoetis Inc. | 70.03% | 69.63% | 70.38% | 69.18% | 68.18% | |
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
Gross profit margin = 100 × Gross profit on product sales ÷ Product sales
= 100 × 20,436 ÷ 26,934 = 75.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Gilead Sciences Inc. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Operating Profit Margin
Gilead Sciences Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 7,605) | 7,330) | 9,918) | 4,071) | 4,287) | |
| Product sales | 26,934) | 26,982) | 27,008) | 24,355) | 22,119) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 28.24% | 27.17% | 36.72% | 16.72% | 19.38% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 23.49% | 31.21% | 31.89% | 24.81% | 39.03% | |
| Amgen Inc. | 29.35% | 38.57% | 31.44% | 37.70% | 43.57% | |
| Bristol-Myers Squibb Co. | 16.18% | 17.96% | 15.91% | -21.60% | 22.62% | |
| Eli Lilly & Co. | 18.92% | 24.97% | 22.45% | 24.69% | 22.29% | |
| Johnson & Johnson | 24.90% | 24.63% | 24.95% | 23.60% | 24.15% | |
| Merck & Co. Inc. | 3.92% | 30.27% | 25.74% | 16.47% | 24.77% | |
| Pfizer Inc. | 0.38% | 34.83% | 23.91% | 19.47% | 25.46% | |
| Regeneron Pharmaceuticals Inc. | 30.85% | 38.93% | 55.67% | 42.09% | 28.10% | |
| Thermo Fisher Scientific Inc. | 16.00% | 18.69% | 25.57% | 24.19% | 17.99% | |
| Zoetis Inc. | 35.30% | 36.10% | 35.49% | 33.62% | 31.42% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.50% | 28.31% | 26.93% | 18.52% | 26.33% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 9.42% | 13.22% | 13.18% | 10.47% | 12.44% | |
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
Operating profit margin = 100 × Operating income ÷ Product sales
= 100 × 7,605 ÷ 26,934 = 28.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Gilead Sciences Inc. operating profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Net Profit Margin
Gilead Sciences Inc., net profit margin calculation, comparison to benchmarks
| 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) | |
| Product sales | 26,934) | 26,982) | 27,008) | 24,355) | 22,119) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 21.03% | 17.02% | 23.05% | 0.51% | 24.35% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 8.95% | 20.39% | 20.54% | 10.08% | 23.69% | |
| Amgen Inc. | 24.96% | 26.42% | 24.25% | 29.97% | 35.32% | |
| Bristol-Myers Squibb Co. | 17.83% | 13.71% | 15.08% | -21.20% | 13.15% | |
| Eli Lilly & Co. | 15.36% | 21.88% | 19.71% | 25.24% | 37.27% | |
| Johnson & Johnson | 41.28% | 18.90% | 22.26% | 17.82% | 18.42% | |
| Merck & Co. Inc. | 0.61% | 24.49% | 26.79% | 14.72% | 21.01% | |
| Pfizer Inc. | 3.62% | 31.27% | 27.04% | 22.95% | 31.45% | |
| Regeneron Pharmaceuticals Inc. | 30.14% | 35.64% | 50.25% | 41.35% | 26.91% | |
| Thermo Fisher Scientific Inc. | 13.99% | 15.47% | 19.70% | 19.79% | 14.47% | |
| Zoetis Inc. | 27.43% | 26.16% | 26.20% | 24.54% | 23.96% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.66% | 22.37% | 23.45% | 13.66% | 23.51% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 8.05% | 10.26% | 10.89% | 7.77% | 10.20% | |
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
Net profit margin = 100 × Net income attributable to Gilead ÷ Product sales
= 100 × 5,665 ÷ 26,934 = 21.03%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Gilead Sciences Inc. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
Gilead Sciences Inc., ROE calculation, comparison to benchmarks
| 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) | |
| Total Gilead stockholders’ equity | 22,833) | 21,240) | 21,069) | 18,202) | 22,525) | |
| Profitability Ratio | ||||||
| ROE1 | 24.81% | 21.62% | 29.55% | 0.68% | 23.91% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | 46.94% | 68.60% | 74.91% | 35.30% | — | |
| Amgen Inc. | 107.78% | 178.97% | 87.96% | 77.20% | 81.07% | |
| Bristol-Myers Squibb Co. | 27.27% | 20.37% | 19.46% | -23.84% | 6.66% | |
| Eli Lilly & Co. | 48.65% | 58.64% | 62.16% | 109.79% | 319.09% | |
| Johnson & Johnson | 51.11% | 23.36% | 28.20% | 23.25% | 25.42% | |
| Merck & Co. Inc. | 0.97% | 31.57% | 34.17% | 27.91% | 37.99% | |
| Pfizer Inc. | 2.38% | 32.79% | 28.47% | 15.21% | 25.77% | |
| Regeneron Pharmaceuticals Inc. | 15.22% | 19.14% | 43.03% | 31.86% | 19.08% | |
| Thermo Fisher Scientific Inc. | 12.83% | 15.80% | 18.94% | 18.47% | 12.45% | |
| Zoetis Inc. | 46.91% | 47.99% | 44.84% | 43.46% | 55.39% | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.81% | 30.21% | 32.19% | 18.26% | 30.13% | |
| ROE, Industry | ||||||
| Health Care | 18.14% | 22.52% | 23.00% | 16.14% | 21.17% | |
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
ROE = 100 × Net income attributable to Gilead ÷ Total Gilead stockholders’ equity
= 100 × 5,665 ÷ 22,833 = 24.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Gilead Sciences Inc. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Assets (ROA)
Gilead Sciences Inc., ROA calculation, comparison to benchmarks
| 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) | |
| Total assets | 62,125) | 63,171) | 67,952) | 68,407) | 61,627) | |
| Profitability Ratio | ||||||
| ROA1 | 9.12% | 7.27% | 9.16% | 0.18% | 8.74% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 3.61% | 8.53% | 7.88% | 3.07% | 8.84% | |
| Amgen Inc. | 6.91% | 10.06% | 9.63% | 11.54% | 13.13% | |
| Bristol-Myers Squibb Co. | 8.43% | 6.53% | 6.40% | -7.61% | 2.65% | |
| Eli Lilly & Co. | 8.19% | 12.62% | 11.44% | 13.28% | 21.17% | |
| Johnson & Johnson | 20.98% | 9.57% | 11.47% | 8.41% | 9.59% | |
| Merck & Co. Inc. | 0.34% | 13.30% | 12.35% | 7.72% | 11.66% | |
| Pfizer Inc. | 0.94% | 15.91% | 12.11% | 6.23% | 9.72% | |
| Regeneron Pharmaceuticals Inc. | 11.95% | 14.85% | 31.75% | 20.47% | 14.29% | |
| Thermo Fisher Scientific Inc. | 6.07% | 7.15% | 8.12% | 9.23% | 6.33% | |
| Zoetis Inc. | 16.41% | 14.16% | 14.65% | 12.04% | 12.99% | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.31% | 10.76% | 10.60% | 5.39% | 9.31% | |
| ROA, Industry | ||||||
| Health Care | 6.42% | 8.35% | 8.24% | 5.46% | 7.22% | |
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
ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × 5,665 ÷ 62,125 = 9.12%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Gilead Sciences Inc. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |