Gilead Sciences Inc. (GILD)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Turnover Ratios
Inventory turnover 5.36 5.96 5.56 5.22 4.99 5.46 3.66 3.04 2.73 2.68 2.24 2.25 2.30 2.05 2.02 1.93 2.02 2.73
Receivables turnover 6.66 6.52 6.30 6.43 6.43 6.66 6.56 6.26 7.10 6.64 6.14 5.55 5.26 5.49 5.07 5.39 5.59 5.28
Payables turnover 8.33 6.14 7.83 7.20 6.21 5.37 6.02 5.23 4.26 3.53 4.04 3.73 4.57 3.40 3.23 2.50 3.81 3.97
Working capital turnover 0.89 0.86 0.88 1.04 1.24 1.27 1.05 1.40 2.18 2.67 3.01 4.04 3.88 2.16 1.87 3.13 2.14 2.05
Average No. of Days
Average inventory processing period 68 61 66 70 73 67 100 120 134 136 163 162 159 178 181 189 181 134
Add: Average receivable collection period 55 56 58 57 57 55 56 58 51 55 59 66 69 66 72 68 65 69
Operating cycle 123 117 124 127 130 122 156 178 185 191 222 228 228 244 253 257 246 203
Less: Average payables payment period 44 59 47 51 59 68 61 70 86 103 90 98 80 107 113 146 96 92
Cash conversion cycle 79 58 77 76 71 54 95 108 99 88 132 130 148 137 140 111 150 111

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover declined from Q3 2018 to Q4 2018 but then increased from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Gilead Sciences Inc.’s working capital turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Gilead Sciences Inc.’s average receivable collection period improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Gilead Sciences Inc.’s operating cycle improved from Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019 not reaching Q3 2018 level.
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 increased from Q3 2018 to Q4 2018 but then declined significantly from Q4 2018 to Q1 2019.
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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Inventory Turnover

Gilead Sciences Inc., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of goods sold 957  1,570  1,086  1,196  1,001  1,256  1,032  1,126  957  1,075  1,129  864  1,193  1,062  1,064  998  882  1,063  987  925  813 
Inventories 898  814  816  859  885  801  1,144  1,408  1,474  1,587  1,900  1,862  1,880  1,955  1,988  2,039  1,908  1,386  1,910  2,069  2,140 
Ratio
Inventory turnover1 5.36 5.96 5.56 5.22 4.99 5.46 3.66 3.04 2.73 2.68 2.24 2.25 2.30 2.05 2.02 1.93 2.02 2.73

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Inventory turnover = (Cost of goods soldQ1 2019 + Cost of goods soldQ4 2018 + Cost of goods soldQ3 2018 + Cost of goods soldQ2 2018) ÷ Inventories
= (957 + 1,570 + 1,086 + 1,196) ÷ 898 = 5.36

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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Receivables Turnover

Gilead Sciences Inc., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Product sales 5,200  5,681  5,455  5,540  5,001  5,837  6,402  7,046  6,377  7,216  7,405  7,651  7,681  8,409  8,211  8,126  7,405  7,222  5,968  6,413  4,871 
Accounts receivable, net of allowances 3,283  3,327  3,465  3,541  3,775  3,851  4,122  4,478  4,034  4,514  5,075  5,752  6,163  5,854  6,105  5,331  4,835  4,635  2,850  3,437  3,236 
Ratio
Receivables turnover1 6.66 6.52 6.30 6.43 6.43 6.66 6.56 6.26 7.10 6.64 6.14 5.55 5.26 5.49 5.07 5.39 5.59 5.28

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Receivables turnover = (Product salesQ1 2019 + Product salesQ4 2018 + Product salesQ3 2018 + Product salesQ2 2018) ÷ Accounts receivable, net of allowances
= (5,200 + 5,681 + 5,455 + 5,540) ÷ 3,283 = 6.66

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Payables Turnover

Gilead Sciences Inc., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of goods sold 957  1,570  1,086  1,196  1,001  1,256  1,032  1,126  957  1,075  1,129  864  1,193  1,062  1,064  998  882  1,063  987  925  813 
Accounts payable 577  790  580  623  711  814  696  819  944  1,206  1,052  1,122  945  1,178  1,239  1,571  1,011  955  1,183  1,162  1,235 
Ratio
Payables turnover1 8.33 6.14 7.83 7.20 6.21 5.37 6.02 5.23 4.26 3.53 4.04 3.73 4.57 3.40 3.23 2.50 3.81 3.97

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Payables turnover = (Cost of goods soldQ1 2019 + Cost of goods soldQ4 2018 + Cost of goods soldQ3 2018 + Cost of goods soldQ2 2018) ÷ Accounts payable
= (957 + 1,570 + 1,086 + 1,196) ÷ 577 = 8.33

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover declined from Q3 2018 to Q4 2018 but then increased from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Working Capital Turnover

Gilead Sciences Inc., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 34,024  35,836  34,918  32,728  30,258  31,823  35,317  28,592  21,424  20,445  21,425  18,353  19,267  24,763  25,910  18,093  20,062  17,714  12,562  15,499  12,971 
Less: Current liabilities 9,397  10,605  10,116  10,912  10,670  11,635  9,597  8,492  8,282  9,219  11,073  10,444  10,910  9,891  9,360  8,925  7,428  5,761  6,055  6,228  5,915 
Working capital 24,627  25,231  24,802  21,816  19,588  20,188  25,720  20,100  13,142  11,226  10,352  7,909  8,357  14,872  16,550  9,168  12,634  11,953  6,507  9,271  7,056 
Product sales 5,200  5,681  5,455  5,540  5,001  5,837  6,402  7,046  6,377  7,216  7,405  7,651  7,681  8,409  8,211  8,126  7,405  7,222  5,968  6,413  4,871 
Ratio
Working capital turnover1 0.89 0.86 0.88 1.04 1.24 1.27 1.05 1.40 2.18 2.67 3.01 4.04 3.88 2.16 1.87 3.13 2.14 2.05

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Working capital turnover = (Product salesQ1 2019 + Product salesQ4 2018 + Product salesQ3 2018 + Product salesQ2 2018) ÷ Working capital
= (5,200 + 5,681 + 5,455 + 5,540) ÷ 24,627 = 0.89

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 Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Average Inventory Processing Period

Gilead Sciences Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Inventory turnover 5.36 5.96 5.56 5.22 4.99 5.46 3.66 3.04 2.73 2.68 2.24 2.25 2.30 2.05 2.02 1.93 2.02 2.73
Ratio (no. of days)
Average inventory processing period1 68 61 66 70 73 67 100 120 134 136 163 162 159 178 181 189 181 134

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.36 = 68

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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.

Average Receivable Collection Period

Gilead Sciences Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Receivables turnover 6.66 6.52 6.30 6.43 6.43 6.66 6.56 6.26 7.10 6.64 6.14 5.55 5.26 5.49 5.07 5.39 5.59 5.28
Ratio (no. of days)
Average receivable collection period1 55 56 58 57 57 55 56 58 51 55 59 66 69 66 72 68 65 69

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.66 = 55

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Gilead Sciences Inc.’s average receivable collection period improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Operating Cycle

Gilead Sciences Inc., operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 68 61 66 70 73 67 100 120 134 136 163 162 159 178 181 189 181 134
Average receivable collection period 55 56 58 57 57 55 56 58 51 55 59 66 69 66 72 68 65 69
Ratio
Operating cycle1 123 117 124 127 130 122 156 178 185 191 222 228 228 244 253 257 246 203

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 68 + 55 = 123

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 Q3 2018 to Q4 2018 but then slightly deteriorated from Q4 2018 to Q1 2019 not reaching Q3 2018 level.

Average Payables Payment Period

Gilead Sciences Inc., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Payables turnover 8.33 6.14 7.83 7.20 6.21 5.37 6.02 5.23 4.26 3.53 4.04 3.73 4.57 3.40 3.23 2.50 3.81 3.97
Ratio (no. of days)
Average payables payment period1 44 59 47 51 59 68 61 70 86 103 90 98 80 107 113 146 96 92

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.33 = 44

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 increased from Q3 2018 to Q4 2018 but then declined significantly from Q4 2018 to Q1 2019.

Cash Conversion Cycle

Gilead Sciences Inc., cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 68 61 66 70 73 67 100 120 134 136 163 162 159 178 181 189 181 134
Average receivable collection period 55 56 58 57 57 55 56 58 51 55 59 66 69 66 72 68 65 69
Average payables payment period 44 59 47 51 59 68 61 70 86 103 90 98 80 107 113 146 96 92
Ratio
Cash conversion cycle1 79 58 77 76 71 54 95 108 99 88 132 130 148 137 140 111 150 111

Based on: 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-26), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-08-06), 10-Q (filing date: 2018-05-09), 10-K (filing date: 2018-02-27), 10-Q (filing date: 2017-11-07), 10-Q (filing date: 2017-08-07), 10-Q (filing date: 2017-05-10), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-07), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-08), 10-K (filing date: 2015-02-25), 10-Q (filing date: 2014-11-05), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-07).

Q1 2019 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 68 + 5544 = 79

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 Q3 2018 to Q4 2018 but then deteriorated significantly from Q4 2018 to Q1 2019.