Gilead Sciences Inc. (NASDAQ:GILD)

Gross Profit Margin

The gross profit margin remains relatively stable throughout the observed periods, fluctuating mostly in the range of approximately 74% to 80%. A notable dip occurred in the fourth quarter of 2021 with a margin around 75.56%, followed by recovery and stabilization near 78% to 79% in subsequent quarters. This indicates consistent cost management in production or procurement despite minor fluctuations.

Operating Profit Margin

The operating profit margin exhibited considerable volatility, starting at 18.07% in the first quarter of 2021 and reaching a peak exceeding 42% by the third quarter of the same year. There was a decline throughout 2022, dropping close to 22% in the third quarter before a recovery trend in early 2023. However, there is a significant reduction in operating margin in 2024 with values diminishing to below 10%, and even as low as 2.92%. By mid-2025, the operating margin demonstrates a strong rebound, returning to approximately 28%. These fluctuations may reflect changes in operating efficiency, cost structure, or one-off items affecting operating income.

Net Profit Margin

Net profit margin mirrors the overall trend observed in operating margin but with less volatility. Initial values were low at 1.19% in early 2021, rapidly increasing to a peak around 27% by late 2021. A subsequent decline occurs during 2022, with margins settling between roughly 12% and 17%. In 2024, margins sharply fall below 4%, reaching the lowest point at 0.45%, but then recover strongly toward 22% by mid-2025. This pattern suggests the influence of fluctuating non-operating expenses, taxes, or extraordinary items impacting net profitability.

Return on Equity (ROE)

ROE shows a pattern similar to net profit margin, beginning low at approximately 1.6% in early 2021, then rising sharply to over 34% by the third quarter of 2021. A notable decline follows during 2022 and early 2023, dipping to single digits and even below 1% at the lowest point in 2024. However, a strong recovery occurs in late 2024 and 2025 with ROE reaching above 30%, indicating renewed profitability relative to shareholders' equity. The fluctuations highlight variability in net income, equity base, or a combination of both.

Return on Assets (ROA)

Return on assets follows a consistent trajectory aligned with the other profitability ratios. It increases from a low of 0.45% early in 2021 to a high exceeding 11% by late 2021. During 2022 and 2023, ROA remains moderately stable in the 5% to 9% range. There is a significant decline during 2024, nearing zero at times, but a recovery in 2025 with ROA reaching above 11%. This pattern suggests variability in asset utilization effectiveness and net earnings during the periods analyzed.

Gross profit on product sales

The gross profit on product sales displays a fluctuating pattern over the analyzed periods. Initial quarters in 2021 show values ranging mostly below 6,200 million US dollars, with a notable peak in September 2021 at 6,133 million. This is followed by a general decline in late 2021. In 2022, the gross profit figures mostly remain in a moderate range between 4,600 million and 5,900 million, demonstrating some recovery and stability. From 2023 onward, there is a consistent recovery trend with figures largely hovering around or above 5,000 million, peaking significantly in the third and fourth quarters of 2024 and continuing high into early 2025. These movements suggest some volatility but generally indicate recovery and growth in gross profit towards the later periods.

Product sales

Product sales exhibit a strong seasonal and cyclical pattern. Early 2021 sales start near the 6,000 million mark, increase steadily to a peak in the fourth quarter of 2021 at approximately 7,160 million, then drop somewhat in subsequent quarters. The year 2022 reflects fluctuations similar to previous levels, with sales stabilizing mostly between 6,100 million and 7,300 million. Moving into 2023 and afterward, sales maintain a relatively high level, with quarterly values generally above 6,600 million and peaking in late 2024 at over 7,500 million. These patterns indicate robust sales performance with a tendency to peak towards the latter quarters of each year.

Gross profit margin

The gross profit margin percentage shows some variability but remains largely stable within the 74% to 80% range. The margin starts in early 2021 around 80%, slightly dipping through mid-2021 and remaining close to 75%-79% during most periods. Noteworthy are the lower margins observed towards the end of 2021 (~75.56%) and the late 2022 period (~74.31%), which suggest some margin pressure in these quarters. From 2023 forward, margins tend to recover somewhat, stabilizing mostly above 75% and reaching above 78% by the end of 2024 and into 2025. Overall, gross profit margins remain solid, indicating effective cost management relative to sales.

Summary of trends

Across the analyzed periods, the company demonstrates resilient financial performance with fluctuating but generally positive gross profit and product sales trends. Product sales show seasonal peaks typically in the final quarters of each year, which contribute to corresponding increases in gross profit. The gross profit margin displays some volatility but remains within a healthy range, reflecting consistent profitability despite market or operational fluctuations. The recovery and growth observed from 2023 onward in both sales and profit suggest strengthening business conditions or successful strategic initiatives.

Operating Income (Loss) Trend

Operating income exhibits significant fluctuations throughout the observed periods. Initially, there is a notable peak of $3,842 million in September 2021, followed by a sharp decline to $940 million by December 2021. The subsequent quarters show a recovery trend with peaks around mid-2022, maintaining values generally above $1,600 million through most of 2023. However, a pronounced loss is observed in March 2024, with operating income falling to a negative $4,322 million, indicating a substantial operational challenge during that quarter. Post this downturn, the operating income rebounds, stabilizing at positive figures between approximately $888 million and $2,474 million from mid-2024 through mid-2025.

Product Sales Analysis

Product sales demonstrate relative stability with seasonal fluctuations. The sales volumes oscillate primarily between approximately $6,100 million and $7,500 million over the quarters. Notably, peak sales occur in the latter half of multiple years, such as September and December 2024. Minimal declines are observed in some quarters, such as March 2023 and March 2025, but overall, product sales maintain a consistent band, reflecting steady market demand or entrenched product positioning.

Operating Profit Margin Insights

The operating profit margin shows considerable variability, ranging from a low of approximately 2.92% to highs exceeding 42%. Margins peaked at 42.79% in September 2021, aligning with a peak in operating income, suggesting efficient cost management or favorable revenue mix during that period. Margins declined markedly by early 2024, reaching a low of 2.92% in September 2024, coinciding with the observed operating loss in the preceding quarter. The profit margin slightly recovers thereafter, stabilizing around 28% towards mid-2025. These variations imply fluctuating operational efficiency and possibly varying cost structures or pricing pressures across the timeline.

Overall Observations and Implications

The data suggests periods of operational volatility, with the company experiencing both strong profitability phases and notable downturns, especially in early 2024. Despite fluctuations in operating income and profit margins, product sales have remained relatively steady, indicating a stable revenue base but possible challenges in cost control or expense management impacting profitability. The recovery post the significant 2024 loss reflects resilience and potential corrective measures implemented to restore operational health. Monitoring cost structures and sustaining sales growth are critical for maintaining and improving profitability in future periods.

Net Income (Loss) Attributable to Gilead

Over the observed quarters, net income demonstrates significant variability, ranging from a high of 2592 million USD in September 2021 to a notable low point of -4170 million USD in March 2024. Initial quarters reflect a generally positive income trend with episodic increases and decreases, including a sharp decline in December 2021. After recovering mid-2022 and maintaining elevated levels through 2023, net income experiences a pronounced loss during the first quarter of 2024. Subsequently, net income returns to positive figures, stabilizing around the 1200 to 2000 million USD range through mid-2025.

Product Sales

Product sales exhibit cyclical patterns with periodic fluctuations but generally maintain a consistent range between approximately 6100 and 7500 million USD across all quarters. Notably, product sales peak sporadically in September 2024 and December 2024, reaching values above 7500 million USD. There is a slight downward trend during the early quarters of 2023 and again towards mid-2025, yet sales remain relatively stable when considering the full timeframe analyzed.

Net Profit Margin

The net profit margin shows considerable variation throughout the period. Initially low at 1.19% in March 2021, it rises sharply to over 27% in September 2021, then fluctuates between approximately 12% and 23% through 2022 and 2023. The margin declines sharply in early 2024, bottoming out at 0.45% in September 2024, coinciding with the negative net income observed during this period. Following this low point, the margin recovers by the end of 2024 and into 2025, stabilizing around values between 20% and 22%, suggesting improved profitability in the latter stages.

Summary and Insights

The data indicates a business experiencing periodic volatility particularly in profitability, despite relatively stable product sales. The surge in net income and profit margin in late 2021 may reflect operational efficiencies or one-time gains. The significant loss and low profit margin in early 2024 suggest extraordinary challenges or expenses during that period, followed by a recovery in both profitability metrics. Product sales remain steady throughout, implying stable demand or successful sales strategies. The recovery of net income and net profit margin in late 2024 and 2025 points to the company's ability to rebound from financial setbacks and restore earnings power.

The quarterly financial data reveals several notable trends in net income, stockholders’ equity, and return on equity (ROE) over the observed periods.

Net Income

Net income exhibits significant volatility throughout the quarters. Initially, there is a strong positive net income, peaking at 2,592 million USD in September 2021. This is followed by a sharp decline early in 2022, with net income nearly vanishing or turning slightly positive. Mid 2022 through 2023 shows recovery and improvement with fluctuating but generally positive figures, reaching highs again over 2,000 million USD. Notably, in the first quarter of 2024, there is a substantial loss of 4,170 million USD, indicating an exceptional or unusual expense. Following this loss, net income rebounds to positive territory through to mid-2025, with figures consistently above 1,200 million USD.

Total Stockholders' Equity

Stockholders’ equity begins around 18,952 million USD and gradually increases over time, reaching a peak near 22,833 million USD by the end of 2023. However, equity subsequently declines sharply in early 2024 to around 17,539 million USD, corresponding with the significant net loss recorded in the same period. Thereafter, equity shows a moderate recovery trend, climbing back toward 19,674 million USD by mid-2025, though it does not return to earlier peak levels within the period observed.

Return on Equity (ROE)

ROE shows marked fluctuation, indicative of the volatility in net income relative to equity. Early data show high ROE values exceeding 20%, with peaks above 30% in late 2021, reflecting strong profitability. This metric declines sharply following the notable net income dip in early 2022 but remains mostly positive. The first quarter of 2024 sees ROE plummet to low single digits, corresponding to the large net loss and equity drop. Subsequently, ROE recovers robustly, rising above 30% again by mid-2025, signaling a return to strong profitability relative to equity invested.

Overall, the financial indicators suggest the company experienced periods of strong profitability interspersed with episodes of significant financial stress reflected in a large net loss and equity decline in early 2024. Despite this setback, the company shows resilience with recovery in net income, equity, and profitability in subsequent quarters.

The quarterly financial data presents varying trends in net income attributable to the company, total assets, and return on assets (ROA) over the examined periods.

Net Income (Loss) Attributable

Net income exhibits considerable volatility throughout the periods. Initial quarters show moderate to strong earnings, exemplified by a peak of 2592 million USD in the third quarter of 2021, followed by a significant dip to 382 million USD by the end of that year. The first half of 2022 reflects a recovery with increases reaching 1789 million USD in the third quarter. The year 2023 begins with steady income, peaking again at 2180 million USD in the third quarter before experiencing a sharp decline in the first quarter of 2024, recording a negative net income of -4170 million USD. Subsequently, net income recovers in the following quarters, returning to positive values exceeding 1900 million USD by mid-2025.

Total Assets

Total assets display a gradual declining trend from around 67492 million USD in early 2021 to approximately 55721 million USD by mid-2025. Intermittent fluctuations occur, with slight asset increases observed during late 2024 and early 2025, but the overarching pattern points to a reduction in asset base over the full period evaluated.

Return on Assets (ROA)

ROA reflects financial performance variability consistent with net income trends. Initially low at 0.45%, it surges to a high of approximately 11.02% in the third quarter of 2021, then stabilizes generally between 5% and 10% through late 2023. The early 2024 period marks a sharp decline of ROA to under 1%, concurrent with the negative net income recorded during the same timeframe. ROA subsequently recovers later in 2024 and through 2025, reaching levels over 10%, indicating renewed efficiency in asset utilization and profitability.

In summary, the company's financial performance as gauged by net income and ROA undergoes significant fluctuations, with notable volatility peaking multiple times within the analyzed quarters. Despite a declining asset base, operational returns show resilience, although episodic setbacks, such as the first quarter of 2024, signal considerable challenges during that timeframe. The recovery pattern towards mid-2025 suggests improvement in profitability and operational management.