Microsoft Excel LibreOffice Calc

Gilead Sciences Inc. (GILD)


Short-term (Operating) Activity Analysis

Difficulty: Beginner


Ratios (Summary)

Gilead Sciences Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Turnover Ratios
Inventory turnover 5.96 5.46 2.68 2.05 2.73
Receivables turnover 6.52 6.66 6.64 5.49 5.28
Payables turnover 6.14 5.37 3.53 3.40 3.97
Working capital turnover 0.86 1.27 2.67 2.16 2.05
Average No. of Days
Average inventory processing period 61 67 136 178 134
Add: Average receivable collection period 56 55 55 66 69
Operating cycle 117 122 191 244 203
Less: Average payables payment period 59 68 103 107 92
Cash conversion cycle 58 54 88 137 111

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Gilead Sciences Inc.’s inventory turnover improved from 2016 to 2017 and from 2017 to 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover increased from 2016 to 2017 and from 2017 to 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Gilead Sciences Inc.’s working capital turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Gilead Sciences Inc.’s average inventory processing period improved from 2016 to 2017 and from 2017 to 2018.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Gilead Sciences Inc.’s operating cycle improved from 2016 to 2017 and from 2017 to 2018.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Gilead Sciences Inc.’s average payables payment period declined from 2016 to 2017 and from 2017 to 2018.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Gilead Sciences Inc.’s cash conversion cycle improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Inventory Turnover

Gilead Sciences Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cost of goods sold 4,853  4,371  4,261  4,006  3,788 
Inventories 814  801  1,587  1,955  1,386 
Ratio
Inventory turnover1 5.96 5.46 2.68 2.05 2.73
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.35 3.43 3.71 3.37 3.49
AbbVie Inc. 4.81 4.39 4.04 2.62 3.94
Allergan PLC 2.59 2.40 2.59 4.76 3.04
Amgen Inc. 1.39 1.44 1.52 1.74 1.67
Biogen Inc. 1.95 1.81 1.48 1.39 1.46
Bristol-Myers Squibb Co. 5.48 5.20 3.99 3.20 2.52
Celgene Corp. 1.28 0.85 0.88 0.95 0.98
Eli Lilly & Co. 1.56 1.36 1.59 1.46 1.80
Johnson & Johnson 3.15 2.89 2.66 2.67 2.78
Merck & Co. Inc. 2.48 2.51 2.85 3.18 3.01
Pfizer Inc. 1.50 1.48 1.82 1.28 1.69
Regeneron Pharmaceuticals Inc. 0.16 0.28 0.49 1.01 1.00
Inventory Turnover, Sector
Pharmaceuticals & Biotechnology 2.51 2.41 2.42 2.30 2.51
Inventory Turnover, Industry
Health Care 5.96 5.62 5.71 5.03 4.95

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 4,853 ÷ 814 = 5.96

2 Click competitor name to see calculations.

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Gilead Sciences Inc.’s inventory turnover improved from 2016 to 2017 and from 2017 to 2018.

Receivables Turnover

Gilead Sciences Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Product sales 21,677  25,662  29,953  32,151  24,474 
Accounts receivable, net of allowances 3,327  3,851  4,514  5,854  4,635 
Ratio
Receivables turnover1 6.52 6.66 6.64 5.49 5.28
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 5.90 5.22 6.42 5.97 5.65
AbbVie Inc. 6.08 5.55 5.39 4.83 5.34
Allergan PLC 5.50 5.50 5.76 6.28 5.51
Amgen Inc. 6.29 6.73 6.92 6.99 7.59
Biogen Inc. 5.56 5.79 6.81 7.49 6.35
Bristol-Myers Squibb Co. 4.66 4.43 4.69 4.76 5.55
Celgene Corp. 7.39 6.75 6.90 6.45 6.48
Eli Lilly & Co. 4.68 5.03 5.27 5.68 6.06
Johnson & Johnson 5.79 5.67 6.14 6.53 6.77
Merck & Co. Inc. 5.98 5.84 5.67 6.09 6.37
Pfizer Inc. 6.68 6.39 6.42 5.97 5.72
Regeneron Pharmaceuticals Inc. 2.38 2.42 2.49 2.33 2.37
Receivables Turnover, Sector
Pharmaceuticals & Biotechnology 5.79 5.67 5.94 5.90 6.04
Receivables Turnover, Industry
Health Care 7.50 7.35 7.66 7.42 7.59

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Receivables turnover = Product sales ÷ Accounts receivable, net of allowances
= 21,677 ÷ 3,327 = 6.52

2 Click competitor name to see calculations.

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Payables Turnover

Gilead Sciences Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Cost of goods sold 4,853  4,371  4,261  4,006  3,788 
Accounts payable 790  814  1,206  1,178  955 
Ratio
Payables turnover1 6.14 5.37 3.53 3.40 3.97
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.27 5.14 7.66 8.09 8.66
AbbVie Inc. 4.99 4.78 4.15 2.82 3.16
Allergan PLC 6.26 6.68 8.27 13.02 9.78
Amgen Inc. 3.40 3.01 4.54 4.38 3.65
Biogen Inc. 4.90 4.12 5.28 4.64 5.11
Bristol-Myers Squibb Co. 3.46 2.70 2.97 2.50 1.58
Celgene Corp. 1.40 1.51 1.77 1.74 1.95
Eli Lilly & Co. 4.55 4.30 4.19 3.76 4.37
Johnson & Johnson 3.59 3.47 3.13 3.23 2.98
Merck & Co. Inc. 4.07 4.12 4.95 5.90 6.39
Pfizer Inc. 2.41 2.41 2.72 2.67 2.98
Regeneron Pharmaceuticals Inc. 0.82 1.14 1.44 1.71 1.30
Payables Turnover, Sector
Pharmaceuticals & Biotechnology 3.71 3.61 3.75 3.86 3.84
Payables Turnover, Industry
Health Care 5.97 5.79 5.98 5.80 5.55

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 4,853 ÷ 790 = 6.14

2 Click competitor name to see calculations.

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover increased from 2016 to 2017 and from 2017 to 2018.

Working Capital Turnover

Gilead Sciences Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 35,836  31,823  20,445  24,763  17,714 
Less: Current liabilities 10,605  11,635  9,219  9,891  5,761 
Working capital 25,231  20,188  11,226  14,872  11,953 
Product sales 21,677  25,662  29,953  32,151  24,474 
Ratio
Working capital turnover1 0.86 1.27 2.67 2.16 2.05
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 5.44 2.44 1.04 4.11 4.28
AbbVie Inc. 6.16 4.00 4.22 4.26
Allergan PLC 21.12 10.43 1.46 52.49 7.01
Amgen Inc. 0.93 0.54 0.63 0.70 0.70
Biogen Inc. 2.51 2.30 1.85 2.23 3.34
Bristol-Myers Squibb Co. 3.32 3.64 3.64 5.86 1.90
Celgene Corp. 3.05 1.09 1.41 1.23 1.00
Eli Lilly & Co. 2.84 4.90 5.16 4.59 20.17
Johnson & Johnson 5.51 6.09 1.86 2.16 2.17
Merck & Co. Inc. 11.53 6.52 2.97 3.74 2.93
Pfizer Inc. 2.97 4.90 6.74 3.39 1.38
Regeneron Pharmaceuticals Inc. 0.82 1.16 1.72 1.28 1.16
Working Capital Turnover, Sector
Pharmaceuticals & Biotechnology 3.10 2.61 2.04 2.44 2.02
Working Capital Turnover, Industry
Health Care 5.19 4.01 3.34 3.54 2.84

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Working capital turnover = Product sales ÷ Working capital
= 21,677 ÷ 25,231 = 0.86

2 Click competitor name to see calculations.

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Gilead Sciences Inc.’s working capital turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Average Inventory Processing Period

Gilead Sciences Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Inventory turnover 5.96 5.46 2.68 2.05 2.73
Ratio (no. of days)
Average inventory processing period1 61 67 136 178 134
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 109 107 98 108 105
AbbVie Inc. 76 83 90 139 93
Allergan PLC 141 152 141 77 120
Amgen Inc. 262 254 241 210 218
Biogen Inc. 187 202 247 263 251
Bristol-Myers Squibb Co. 67 70 92 114 145
Celgene Corp. 285 428 415 385 372
Eli Lilly & Co. 233 268 230 250 203
Johnson & Johnson 116 126 137 136 131
Merck & Co. Inc. 147 146 128 115 121
Pfizer Inc. 244 246 201 284 216
Regeneron Pharmaceuticals Inc. 2,334 1,309 749 360 365
Average Inventory Processing Period, Sector
Pharmaceuticals & Biotechnology 145 152 151 159 145
Average Inventory Processing Period, Industry
Health Care 61 65 64 73 74

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.96 = 61

2 Click competitor name to see calculations.

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Gilead Sciences Inc.’s average inventory processing period improved from 2016 to 2017 and from 2017 to 2018.

Average Receivable Collection Period

Gilead Sciences Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Receivables turnover 6.52 6.66 6.64 5.49 5.28
Ratio (no. of days)
Average receivable collection period1 56 55 55 66 69
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 62 70 57 61 65
AbbVie Inc. 60 66 68 76 68
Allergan PLC 66 66 63 58 66
Amgen Inc. 58 54 53 52 48
Biogen Inc. 66 63 54 49 58
Bristol-Myers Squibb Co. 78 82 78 77 66
Celgene Corp. 49 54 53 57 56
Eli Lilly & Co. 78 73 69 64 60
Johnson & Johnson 63 64 59 56 54
Merck & Co. Inc. 61 63 64 60 57
Pfizer Inc. 55 57 57 61 64
Regeneron Pharmaceuticals Inc. 153 151 147 156 154
Average Receivable Collection Period, Sector
Pharmaceuticals & Biotechnology 63 64 61 62 60
Average Receivable Collection Period, Industry
Health Care 49 50 48 49 48

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.52 = 56

2 Click competitor name to see calculations.

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Gilead Sciences Inc., operating cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 61 67 136 178 134
Average receivable collection period 56 55 55 66 69
Ratio
Operating cycle1 117 122 191 244 203
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 171 177 155 169 170
AbbVie Inc. 136 149 158 215 161
Allergan PLC 207 218 204 135 186
Amgen Inc. 320 308 294 262 266
Biogen Inc. 253 265 301 312 309
Bristol-Myers Squibb Co. 145 152 170 191 211
Celgene Corp. 334 482 468 442 428
Eli Lilly & Co. 311 341 299 314 263
Johnson & Johnson 179 190 196 192 185
Merck & Co. Inc. 208 209 192 175 178
Pfizer Inc. 299 303 258 345 280
Regeneron Pharmaceuticals Inc. 2,487 1,460 896 516 519
Operating Cycle, Sector
Pharmaceuticals & Biotechnology 208 216 212 221 205
Operating Cycle, Industry
Health Care 110 115 112 122 122

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 61 + 56 = 117

2 Click competitor name to see calculations.

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Gilead Sciences Inc.’s operating cycle improved from 2016 to 2017 and from 2017 to 2018.

Average Payables Payment Period

Gilead Sciences Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Payables turnover 6.14 5.37 3.53 3.40 3.97
Ratio (no. of days)
Average payables payment period1 59 68 103 107 92
Benchmarks (no. of days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 85 71 48 45 42
AbbVie Inc. 73 76 88 130 116
Allergan PLC 58 55 44 28 37
Amgen Inc. 107 121 80 83 100
Biogen Inc. 74 89 69 79 71
Bristol-Myers Squibb Co. 105 135 123 146 231
Celgene Corp. 260 241 206 209 187
Eli Lilly & Co. 80 85 87 97 83
Johnson & Johnson 102 105 116 113 122
Merck & Co. Inc. 90 89 74 62 57
Pfizer Inc. 152 151 134 137 122
Regeneron Pharmaceuticals Inc. 442 321 253 213 281
Average Payables Payment Period, Sector
Pharmaceuticals & Biotechnology 98 101 97 95 95
Average Payables Payment Period, Industry
Health Care 61 63 61 63 66

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.14 = 59

2 Click competitor name to see calculations.

Ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Gilead Sciences Inc.’s average payables payment period declined from 2016 to 2017 and from 2017 to 2018.

Cash Conversion Cycle

Gilead Sciences Inc., cash conversion cycle calculation, comparison to benchmarks

No. of days

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data
Average inventory processing period 61 67 136 178 134
Average receivable collection period 56 55 55 66 69
Average payables payment period 59 68 103 107 92
Ratio
Cash conversion cycle1 58 54 88 137 111
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 86 106 107 124 128
AbbVie Inc. 63 73 70 85 45
Allergan PLC 149 163 160 107 149
Amgen Inc. 213 187 214 179 166
Biogen Inc. 179 176 232 233 238
Bristol-Myers Squibb Co. 40 17 47 45 -20
Celgene Corp. 74 241 262 233 241
Eli Lilly & Co. 231 256 212 217 180
Johnson & Johnson 77 85 80 79 63
Merck & Co. Inc. 118 120 118 113 121
Pfizer Inc. 147 152 124 208 158
Regeneron Pharmaceuticals Inc. 2,045 1,139 643 303 238
Cash Conversion Cycle, Sector
Pharmaceuticals & Biotechnology 110 115 115 126 110
Cash Conversion Cycle, Industry
Health Care 49 52 51 59 56

Based on: 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 2018 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 61 + 5659 = 58

2 Click competitor name to see calculations.

Ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Gilead Sciences Inc.’s cash conversion cycle improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.