Gilead Sciences Inc. (NASDAQ:GILD)

Gross Profit Margin

The gross profit margin demonstrates variability but generally remains within a range between approximately 74% and 81% over the observed periods from 2020 to 2025. Initially rising to a peak around late 2020 and early 2021 near 81%, it later experiences a dip to below 75% during late 2021 and early 2022. Following this decline, the margin stabilizes around the mid-to-high 70% range, showing modest recovery towards the end of the observed periods, ending above 78%. This indicates an overall stable product cost management with some fluctuations possibly due to pricing or input cost changes.

Operating Profit Margin

The operating profit margin exhibits notable volatility across the quarters. Early in the observed timeline, there is a significant upward trend culminating in a peak exceeding 40% in late 2020. Subsequently, a decline follows, reaching values as low as 2.92% by late 2024, before rebounding sharply to nearly 29% in the most recent quarters. The fluctuations suggest periods of varying operational efficiency or expense management, with marked declines indicating possible challenges or increased operating costs, offset by recovery phases reflecting improved cost control or revenue management.

Net Profit Margin

The net profit margin trends correspond somewhat to the operating margin movements, yet with generally lower values. Starting near negligible or slightly positive levels before mid-2020, the margin rises significantly to peaks above 27% in late 2020, followed by a gradual decline to low single digits in late 2024. A recovery is visible thereafter, increasing back to approximately 20% by mid-2025. This indicates that the company's bottom line profitability was substantially impacted during intermediate periods but improved in recent quarters, reflecting changes in non-operating items or tax impacts along with operational profitability.

Return on Equity (ROE)

The ROE displays a pattern that aligns with net income profitability trends. After minimal returns earlier, it sharply increases to above 34% in late 2020, followed by a decline reaching less than 3% around late 2024. A strong recovery occurs thereafter, with ROE exceeding 31% by mid-2025. This suggests the company experienced considerable variations in generating returns on shareholder equity, possibly due to fluctuations in net income, share repurchases, or equity base changes.

Return on Assets (ROA)

The ROA also shows cyclical behavior, starting from near zero, rising to levels above 11% at the end of 2020, then falling back below 1% around late 2024. A subsequent rebound places it above 11% by mid-2025. This indicates changing asset utilization efficiency and profitability, with periods of diminished returns possibly caused by increased asset base or reduced profitability, followed by a phase of enhanced asset productivity.

The quarterly financial data presents trends in product sales, gross profit on product sales, and gross profit margin over several periods. The analysis is as follows:

Product Sales

Product sales exhibit fluctuations across the reported quarters, initially showing growth from early 2020 through late 2020. The highest sales values tend to occur toward the end of each year, with notable peaks in December quarters, such as $7,328 million in December 2020 and $7,515 million in December 2024. There are intermittent declines within the quarters, often followed by recoveries, suggesting some seasonality or variability in sales performance.

Gross Profit on Product Sales

Gross profit on product sales generally moves in tandem with product sales, although the magnitude of fluctuations sometimes differs. The data reflects strong gross profits particularly in December quarters, mirroring the sales peaks. For example, the gross profit reached $5,936 million in December 2022 and $5,955 million in December 2024. Some quarters display a decline in gross profit despite relatively stable or increased sales, indicating potential cost pressures or changes in product mix affecting profitability.

Gross Profit Margin

The gross profit margin percentages are available beginning from March 2021 and remain within a relatively narrow range, mostly fluctuating between approximately 74% and 81%. The margin shows periodic decreases coinciding with reduced gross profit margins in March and June quarters in several years, such as 75.56% in March 2022 and 74.31% in December 2021. Conversely, margins tend to improve during later quarters, evidencing some seasonality or operational leverage impacts. The overall margin level indicates a consistently strong profitability on product sales over the periods.

The financial data reveals variability in operating income and product sales over the examined periods, with notable fluctuations and some recovery phases.

Operating Income (Loss)

Operating income exhibits significant volatility throughout the periods. Beginning with a strong figure of 2,402 million US dollars in the first quarter of 2020, it sharply shifts to a loss of 2,983 million in the subsequent quarter. Following this, operating income fluctuates, peaking at 3,842 million in the third quarter of 2021 and experiencing declines thereafter, including a negative value of 4,322 million in the second quarter of 2024. Despite the pronounced swings, the company manages periodic recoveries, with values such as 2,837 million at the end of 2022 and 2,474 million in the last quarter of 2025.

Product Sales

Product sales display a more consistent upward trend compared to operating income. Starting at 5,467 million US dollars in the first quarter of 2020, sales demonstrate moderate fluctuations but generally increase over time, reaching peaks above 7,500 million in the second quarter of 2025. The data suggests relatively stable demand and revenue generation from product sales despite the operating income variability.

Operating Profit Margin

The operating profit margin shows substantial variation, reflecting the instability in operating income relative to product sales. Initially unlisted, the margin reaches a low level in the early 2021 quarters but then attains a peak of approximately 42.79% in the fourth quarter of 2020. Subsequently, this metric declines and fluctuates between roughly 2.92% and 33.03%, indicating episodes of both operational efficiency and strain. Notably, margin levels in 2024 experience dips below 10%, coinciding with the observed operating income losses.

Overall, the data suggests that while product sales remain relatively strong and growing, operating income and profit margins are subject to significant fluctuations, implying challenges with cost management or other operational factors affecting profitability across the reported quarters.

Net income (loss) attributable to Gilead

The net income exhibits significant volatility throughout the analyzed quarters. Beginning with a positive value of 1,551 million USD in March 2020, it sharply declined to a substantial loss of -3,339 million USD by June 2020. It then recovered in the subsequent quarters of 2020, reaching 1,551 million USD again in December 2020. The first part of 2021 displays mostly positive income, with some fluctuations such as a peak at 2,592 million USD in September 2021. However, substantial volatility continues into later periods, including another steep decline to -4,170 million USD in March 2024. The later quarters generally show positive net income again, although the values fluctuate moderately.

Product sales

Product sales demonstrate a relatively stable trend with some fluctuations. From March 2020 to December 2020, sales increased from 5,467 million USD to 7,328 million USD, marking an overall upward trajectory. The first half of 2021 shows a slight decline but recovers toward the end of 2021, maintaining sales around 7,000 million USD. Throughout 2022 and into 2023, sales remained within a range of approximately 6,100 to 7,300 million USD, reflecting moderate consistency. The data for 2024 and early 2025 indicate a maintained sales volume near previous levels, with a moderate increase toward the end of the period.

Net profit margin

The net profit margin data beginning from March 2021 reveals considerable fluctuation. Initially, the margin is low at 0.51% with subsequent quarters showing substantial increases, peaking at 27.21% in December 2021. After this peak, the margin generally declines, maintaining a range mostly between 12% and 22% throughout 2022 and 2023, representing a moderately profitable period. In 2024, the margin drops sharply to as low as 0.45% but recovers again to over 20% by mid-2025. This pattern reflects the volatility observed in net income despite relatively stable product sales.

Net Income (Loss) Attributable to Gilead (US$ in millions)

The net income figures exhibit significant volatility over the observed quarters. There are notable instances of negative net income, such as in June 2020 (-3339 million) and March 2024 (-4170 million), indicating periods of financial loss. Despite these fluctuations, there are recurring phases of recovery and growth, with peaks occurring in multiple quarters, for example September 2021 (2592 million) and September 2023 (2180 million). The overall pattern demonstrates alternating cycles of profitability and losses without a clear upward or downward long-term trend.

Total Gilead Stockholders’ Equity (US$ in millions)

The equity base shows a generally stable to slightly increasing trend with some fluctuations. Starting from 22067 million in March 2020, it declines to a low of around 17445 million in September 2020, then recovers and exhibits a moderate upward trajectory reaching highs of approximately 22833 million in December 2023. Nevertheless, a marked decrease appears again in March 2024 to 17539 million followed by a gradual recovery toward the later periods. The data suggest the equity position has been impacted by the income volatility but maintains relative resilience overall.

Return on Equity (ROE, %)

The ROE values present a wide range with considerable variability over time. Some quarters early in 2020 lack data, but from March 2021 onward, the ROE reaches high levels, including peaks of 34.44% in December 2021 and values consistently above 20% over several quarters. However, in early 2024, the ROE plummets sharply to single-digit percentages and near zero values, aligning with the periods of net loss indicated previously. Post-2024, ROE recovers to levels exceeding 30% in the middle and later quarters, suggesting restored profitability and efficient equity utilization.

Summary

Overall, the financial metrics illustrate a company experiencing significant short-term earnings fluctuations and associated impacts on shareholders’ equity and profitability measures. Despite episodic losses and equity declines, there is evidence of a pattern of recovery and improvement in return on equity following challenging periods. The volatile ROE corresponds closely with net income swings, reflecting sensitivity in profitability relative to equity investment. The equity base remains relatively stable, indicating solid capital backing even in down cycles. Future attention may focus on managing volatility to maintain consistent profitability and equity growth.

The financial performance over the observed periods exhibits significant fluctuations in net income attributable to Gilead, alongside varying trends in total assets and return on assets (ROA).

Net Income

The net income shows notable volatility across the quarters. Initial values start positively at 1,551 million USD in March 2020, followed by a sharp loss of -3,339 million USD in June 2020. Subsequent quarters generally revert to positive territory with some fluctuations, reaching as high as 2,592 million USD in September 2021, but with intermittent dips such as 382 million USD in December 2021 and -4,170 million USD in March 2024. This alternating pattern suggests episodic impacts on profitability possibly due to non-recurring items or operational challenges during the observed periods.

Total Assets

Total assets show a general decreasing trend from the peak near the end of 2020, where total assets stood at 68,407 million USD, gradually declining toward approximately 55,721 million USD by June 2025. There are minor fluctuations but no sustained growth in the asset base, indicating potential asset disposals, depreciation outpacing acquisitions, or strategic shifts impacting asset composition over time.

Return on Assets (ROA)

ROA fluctuates considerably, with several quarters characterized by low or modest returns, such as those near zero in early 2020s and again in early 2024. However, a strong upward trend is observable from late 2020 through late 2021, where ROA rises to double-digit percentages (reaching peaks above 11%). After this peak, ROA decreases sharply in mid-2024, only to climb back favorably by June 2025 to 11.33%. Such dynamics indicate that asset utilization efficiency in generating net income varies significantly, correlating with the net income volatility observed.

Overall, the financial data reveals a company experiencing episodic profitability with an asset base in gradual decline and fluctuating efficiency in asset utilization reflected by ROA metrics. It suggests a potentially volatile operating environment or periodic financial events influencing both profitability and asset management.