Gilead Sciences Inc. (NASDAQ:GILD)

Gross Profit Margin

The gross profit margin shows a pattern of relative stability with several fluctuations over the observed periods. Starting in early 2020 at around 81%, it experienced a gradual decline through 2021 and 2022, reaching a low near 74%. However, from late 2022 onwards, the margin demonstrated a recovery trend, stabilizing around the high 70s percentage range by early 2025. This indicates consistent profitability at the gross level with some pressure on margins mid-period likely due to changes in cost or pricing dynamics.

Operating Profit Margin

Operating profit margin exhibited significant volatility. It began at approximately 17% in early 2020, peaked sharply to over 40% by the end of 2020, then declined steadily through 2022 to near 22%. Post this decline, the margin briefly increased again, reaching above 30% in late 2022 and early 2023, dropping drastically mid-2023 to below 6%, before appearing to recover sharply to almost 29% in early 2025. These fluctuations suggest periods of operational efficiency gains followed by downturns, potentially linked to changes in operating expenses or revenue performance.

Net Profit Margin

The net profit margin followed a somewhat similar trend to the operating margin but with more pronounced variability. Starting near zero in early 2020, it dramatically increased to above 27% by the end of 2020, then declined gradually to around 12% in late 2022. Subsequently, it rebounded to above 20%, declined sharply again around mid-2024 to below 2%, and recovered substantially to near 21% by early 2025. This pattern reflects the impact of non-operating factors such as taxes, interest, or one-time items influencing the bottom line significantly alongside operational results.

Return on Equity (ROE)

ROE showed a steep rise from near zero in early 2020 to a peak over 34% by the end of 2020, followed by a gradual decrease to about 15% in late 2022. It then increased again to mid-20% range in early 2023 but suddenly dropped to single-digit percentages mid-2024. It rebounded strongly to over 31% by early 2025. This high variability suggests periods of strong equity utilization and profitability interspersed with challenges that likely affected shareholder returns temporarily.

Return on Assets (ROA)

The ROA also exhibited a volatile trajectory, rising from nearly zero in early 2020 to above 11% at the end of 2020, then decreasing steadily to roughly 5% by late 2022. It rebounded modestly above 9% in early 2023, followed by a sharp drop below 1% mid-2024, and then increased again to over 10% by early 2025. This pattern mirrors operational efficiencies and asset utilization effectiveness, with significant fluctuations reflecting changing asset productivity and profitability over time.

The analysis of the quarterly financial data reveals several notable trends in the company's product sales, gross profit on product sales, and gross profit margin over the observed periods.

Product Sales

Product sales exhibited significant fluctuations across the quarters. Initial sales started at $5,467 million in March 2020, followed by a decline in the subsequent quarter. Sales recovered and peaked notably in December 2020 at $7,328 million. Throughout 2021 and into early 2022, sales showed variability but remained relatively strong, with figures oscillating between approximately $6,000 million and $7,300 million. From March 2023 to December 2024, sales demonstrated a generally positive trend, reaching highs around $7,515 million in December 2024, before tapering down to $6,613 million in March 2025. This pattern suggests periodic seasonality or the impact of product cycles.

Gross Profit on Product Sales

Gross profit mirrored the fluctuations observed in product sales, with initial gross profits starting at $4,498 million in March 2020. The gross profit peaked around September 2020 and December 2020, followed by variability in subsequent quarters. Notably, the gross profit experienced declines correlating with dips in product sales, such as in June 2020, June 2022, and March 2025. Peaks in gross profit are observed around September 2021, December 2022, and December 2024, indicating periods of increased profitability possibly due to pricing strategies, cost efficiencies, or product mix changes.

Gross Profit Margin

The gross profit margin percentage, available from December 2020 onwards, remained relatively stable, generally fluctuating between 74% and 81%. The highest margin was observed in December 2020 at 81.23%, followed by a slight decline and stabilization in the mid to high 70% range in subsequent quarters. The data shows minor variations but no significant downward or upward trend over the periods analyzed, suggesting consistent cost control relative to product sales revenue. The margin slightly improved toward late 2024 and early 2025, reaching approximately 78% in March 2025.

Overall, the data indicates that while product sales and gross profits have exhibited volatility, possibly due to external market conditions or internal operational factors, the gross profit margin has remained relatively steady. This stability in margins points to effective management of cost of goods sold relative to revenue despite the fluctuations in sales volume. The observed patterns might warrant further investigation into the causes of sales variability and continuing efforts to maintain profit margins.

The analysis of the quarterly financial data reveals several notable trends and fluctuations.

Operating Income (Loss)

The operating income exhibits significant volatility across the periods. Initial values start positively at 2,402 million US dollars in March 2020, but then experience a sharp decline to a loss of 2,983 million by June 2020. Subsequently, the income shows recovery with oscillations, peaking notably at 3,842 million in September 2021. However, certain quarters such as June 2024 show a steep decline with an operating loss of 4,322 million. The range of values throughout the timeline indicates periods of both strong profitability and considerable losses, reflecting uneven operational performance.

Product Sales

Product sales demonstrate a generally stable trend with some fluctuations. From 5,467 million US dollars in March 2020, sales peak around 7,515 million in December 2024. There are periodic fluctuations, but the general trajectory suggests gradual growth over the years. Quarterly variations exist, but no extreme declines are observed, indicating consistent demand or sales volume over time.

Operating Profit Margin

The operating profit margin data is only available from December 2020 onwards. Margins start at 16.72% and reach a peak of 42.79% in December 2021, reflecting a period of high profitability relative to sales. Following this peak, the margin declines somewhat but remains generally above 20% through early 2023. In mid to late 2024, the profit margin falls dramatically, touching lows near 2.92% and 5.81%, which aligns with concurrent operating income losses, indicating pressure on operational efficiency or increased costs during these quarters. The margin recovers to 28.77% by March 2025, signaling a potential return to steadier profitability.

Overall, the data depicts a company experiencing volatility in operational income and profit margins, despite relatively steady growth in product sales. Peaks in profitability periods are followed by declines, suggesting varying influences such as market conditions, cost management, or other operational factors impacting earnings. The sharp losses in select quarters warrant further investigation to understand underlying causes and to ensure sustainable profitability going forward.

The quarterly financial data reveals notable fluctuations in net income attributable to the company, product sales, and net profit margin over the observed periods. The variations suggest changing market conditions, operational performance, and profitability dynamics.

Net Income (Loss) Attributable to the Company

Net income figures exhibit considerable volatility, with notable losses and gains across various quarters. For instance, there was a significant loss in the quarter ending June 30, 2020 (-$3,339 million), contrasted by strong positive results in surrounding quarters. The company's net income reached a peak of $2,592 million in September 30, 2021, but sharply declined again in March 31, 2024 (-$4,170 million). Overall, positive net income tends to be interspersed with periods of loss or marginal profits, indicating potential episodic events or fluctuating operational outcomes.

Product Sales

Product sales demonstrated a general upward trend with some periods of decline. Early 2020 sales started at $5,467 million, followed by a dip in mid-2020. Sales rebounded and reached highs such as $7,515 million in December 31, 2024. Despite some quarter-to-quarter fluctuations, product sales mostly maintained levels above $6,000 million, reflecting relatively stable demand or effective sales strategies over time. The general increase towards late 2024 and early 2025 suggests growing market acceptance or expansion efforts.

Net Profit Margin

The net profit margin varied widely, with some quarters showing low or even negative values (though specific early values were unavailable), and others displaying substantial profitability. Margins were notably elevated in periods such as December 31, 2020 (27.21%) and December 31, 2021 (20.87%), indicating efficient cost management or high-margin revenue streams during these times. However, margins substantially decreased during quarters with net income losses, such as March 31, 2024 (1.68%). The variability in margin points toward cyclic profitability, possibly influenced by non-operating items or extraordinary charges in some quarters.

In summary, the financial data reflects an entity experiencing fluctuations in profitability and stable to growing product sales. The trends indicate periods of strong operational performance countered by episodes of financial distress or large adjustments, consistent with industry challenges or internal restructuring processes. Monitoring future quarters for consistency in net income and margin improvement would be advisable to assess sustainability.

The analysis of the quarterly financial data reveals distinct trends in net income attributable to the company, stockholders’ equity, and return on equity (ROE) over the observed periods.

Net Income (Loss) Attributable to the Company (US$ in millions):

Net income figures show significant volatility across quarters. Initial periods include negative values, notably in June 2020 (-3339 million) and subsequent fluctuations observed through to March 2024 (-4170 million). Positive spikes occur intermittently, such as 2592 million in September 2021 and 2180 million in September 2023. The data indicates frequent shifts from profit to loss and back, with no consistent upward or downward trajectory over the long term.

Total Stockholders’ Equity (US$ in millions):

Stockholders’ equity exhibits relative stability with moderate fluctuations. Starting at 22067 million in March 2020, the value shows some declines in mid-2020, bottoming around 17445 million in September 2020. A gradual increase follows through 2021 and early 2023, peaking at 22833 million in June 2023. Afterward, equity experiences a decline to 17539 million in March 2024 before mildly recovering. Overall, equity changes are less volatile compared to net income and reflect a generally stable capital base with occasional contractions.

Return on Equity (ROE, %):

ROE data, available from March 2021 onward, displays considerable variability. Initial values begin low (0.68% to 1.59%) and surge to a peak of 34.44% in December 2021. Following peaks remain elevated in 2022 and most of 2023, generally fluctuating between approximately 15% and 31%. However, a sharp drop occurs in March 2024 (0.69%), closely matching the periods of negative net income. These oscillations underscore the impact of net income volatility on profitability relative to shareholder equity.

In summary, the financial metrics illustrate a company experiencing periods of significant earnings instability alongside a comparatively more stable equity base. ROE variations closely parallel net income swings, indicating fluctuating effectiveness in generating returns for equity holders. The financial position reflects resilience amid earnings volatility, but the irregular profit patterns could warrant further examination regarding underlying operational or market factors.

Net income (loss) attributable to Gilead

The net income exhibited significant volatility over the periods observed. Initially, a substantial loss was recorded in June 2020 (-3,339 million US$), following a positive result in March 2020 (1,551 million US$). From the second half of 2020 through 2021, net income generally remained positive with fluctuations, peaking notably in September 2021 at 2,592 million US$. Early 2022 showed modest net income levels, which then increased through the end of that year.

In 2023, despite some quarter-to-quarter variations, net income remained relatively stable, with a considerable increase in September (2,180 million US$). A dramatic decline was experienced in March 2024, showing a substantial loss (-4,170 million US$), followed by a recovery in subsequent quarters through March 2025, where net income settled again at positive values above 1,000 million US$.

Total assets

Total assets displayed a gradual declining trend across the analyzed timeframe. Starting from 59,741 million US$ in March 2020, total assets peaked at 68,407 million US$ by December 2020, then mostly trended downward. The lowest levels were observed between mid-2024 and early 2025, declining to approximately 56,434 million US$ by March 2025. This reduction suggests either asset divestiture, depreciation exceeding new investments, or other factors impacting asset base contraction.

Return on Assets (ROA)

The ROA percentage showed notable fluctuations aligned with the net income volatility. Initial data was sparse, but from March 2021 onwards, ROA demonstrated strong variability with peaks reaching above 9% in several quarters during 2021 and 2023. A particularly low value was recorded in March 2024 (0.86%), correlating with the significant net income loss in the same quarter. Recovery in ROA was evident by the end of 2024 and into early 2025 with figures again exceeding 10% in the last recorded quarter, indicating improved profitability relative to assets.