Gilead Sciences Inc. (GILD)
Short-term (Operating) Activity Analysis
Difficulty: Beginner
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Ratios (Summary)
Gilead Sciences Inc., short-term (operating) activity ratios
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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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 + 56 – 59 = 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. |