Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

	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	—	—	—

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.

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

	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	—	—	—

Q1 2019 Calculations

¹ Inventory turnover = (Cost of goods sold_{Q1 2019} + Cost of goods sold_{Q4 2018} + Cost of goods sold_{Q3 2018} + Cost of goods sold_{Q2 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.

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

	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	—	—	—

Q1 2019 Calculations

¹ Receivables turnover = (Product sales_{Q1 2019} + Product sales_{Q4 2018} + Product sales_{Q3 2018} + Product sales_{Q2 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.

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

	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	—	—	—

Q1 2019 Calculations

¹ Payables turnover = (Cost of goods sold_{Q1 2019} + Cost of goods sold_{Q4 2018} + Cost of goods sold_{Q3 2018} + Cost of goods sold_{Q2 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.

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

	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	—	—	—

Q1 2019 Calculations

¹ Working capital turnover = (Product sales_{Q1 2019} + Product sales_{Q4 2018} + Product sales_{Q3 2018} + Product sales_{Q2 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.

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

	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	—	—	—

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.

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

	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	—	—	—

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.

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

No. of days

	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	—	—	—

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.

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

	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	—	—	—

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.

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

No. of days

	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	—	—	—

Q1 2019 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 68 + 55 – 44 = 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.

Gilead Sciences Inc. (GILD)

Short-term (Operating) Activity Analysis
Quarterly Data

Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle

Gilead Sciences Inc. (GILD)

Short-term (Operating) Activity AnalysisQuarterly Data

Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle

Short-term (Operating) Activity Analysis
Quarterly Data