Gilead Sciences Inc. (NASDAQ:GILD)


Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level


Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Turnover Ratios
Inventory turnover 5.07 5.17 5.22 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
Receivables turnover 6.18 6.64 6.46 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
Payables turnover 6.56 7.22 7.48 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
Working capital turnover 1.08 1.17 0.89 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
Average No. Days
Average inventory processing period 72 71 70 68 61 66 70 73 67 100 120 134 136 163 162 159 178
Add: Average receivable collection period 59 55 56 55 56 58 57 57 55 56 58 51 55 59 66 69 66
Operating cycle 131 126 126 123 117 124 127 130 122 156 178 185 191 222 228 228 244
Less: Average payables payment period 56 51 49 44 59 47 51 59 68 61 70 86 103 90 98 80 107
Cash conversion cycle 75 75 77 79 58 77 76 71 54 95 108 99 88 132 130 148 137

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Gilead Sciences Inc.’s inventory turnover ratio deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover ratio improved from Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover ratio decreased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Gilead Sciences Inc.’s working capital turnover ratio improved from Q2 2019 to Q3 2019 but then slightly deteriorated from Q3 2019 to Q4 2019.

Short-term activity 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 number of days of inventory outstanding deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 number of days of receivables outstanding improved from Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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 number of days of payables outstanding increased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Cost of goods sold 1,683  1,035  1,000  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 
Inventories 922  882  884  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 
Short-term Activity Ratio
Inventory turnover1 5.07 5.17 5.22 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
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 3.07 2.96 2.94 3.13 3.35 3.38 3.36 3.23 3.43 3.27 3.00 2.49 3.71 3.41 3.15 3.16 3.37
AbbVie Inc. 4.10 3.86 3.89 4.40 4.81 4.47 4.91 4.23 4.39 3.54 3.92 4.26 4.04 3.53 3.08 2.75 2.62
Allergan PLC 2.20 2.20 2.33 2.30 2.59 2.44 2.35 2.36 2.40 2.30 2.08 2.03 2.59 2.55 3.55 4.18 4.76
Amgen Inc. 1.22 1.29 1.32 1.40 1.39 1.35 1.31 1.36 1.44 1.39 1.39 1.44 1.52 1.55 1.56 1.64 1.74
Biogen Inc. 2.43 2.66 2.61 2.56 1.95 2.00 1.87 1.90 1.81 1.49 1.65 1.68 1.48 1.42 1.33 1.29 1.39
Bristol-Myers Squibb Co. 1.88 6.15 5.48 5.31 5.48 5.09 5.20 5.19 5.20 4.62 4.53 3.72 3.99 3.05 3.00 3.08 3.20
Eli Lilly & Co. 1.48 1.62 1.70 1.96 1.56 1.57 1.56 1.36 1.36 1.34 1.32 1.40 1.59 1.44 1.44 1.38 1.46
Johnson & Johnson 3.05 2.99 2.93 2.98 3.15 3.15 3.14 2.95 2.89 2.48 2.29 2.45 2.66 2.57 2.53 2.64 2.67
Merck & Co. Inc. 2.36 2.35 2.29 2.34 2.48 2.52 2.56 2.41 2.51 2.41 2.37 2.59 2.85 2.75 2.81 2.93 3.18
Pfizer Inc. 1.23 1.30 1.31 1.38 1.50 1.40 1.43 1.39 1.48 1.41 1.51 1.61 1.82 1.67 1.53 1.41 1.28
Regeneron Pharmaceuticals Inc. 0.26 0.22 0.16 0.15 0.16 0.18 0.22 0.26 0.28 0.30 0.32 0.38 0.49 0.64 0.82 0.92 1.01
Vertex Pharmaceuticals Inc. 3.27 2.99 3.25 3.17 3.29 2.99 2.89 2.55 2.46 2.56 2.52 2.52 2.71 2.97 2.87 2.58 2.18
Zoetis Inc. 1.41 1.39 1.42 1.46 1.37 1.27 1.26 1.23 1.24 1.20 1.18 1.12 1.11 1.08 1.12 1.19 1.18

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Inventory turnover = (Cost of goods soldQ4 2019 + Cost of goods soldQ3 2019 + Cost of goods soldQ2 2019 + Cost of goods soldQ1 2019) ÷ Inventories
= (1,683 + 1,035 + 1,000 + 957) ÷ 922 = 5.07

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Gilead Sciences Inc.’s inventory turnover ratio deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Product sales 5,796  5,516  5,607  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 
Accounts receivable, net of allowances 3,582  3,315  3,396  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 
Short-term Activity Ratio
Receivables turnover1 6.18 6.64 6.46 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
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 5.88 5.75 5.58 5.75 5.90 5.77 5.70 5.31 5.22 5.24 5.10 4.95 6.42 6.24 5.76 5.95 5.97
AbbVie Inc. 6.13 5.94 5.95 5.75 6.08 5.57 5.34 5.07 5.55 5.58 5.50 5.61 5.39 5.05 4.90 5.00 4.83
Allergan PLC 5.04 5.25 5.08 5.75 5.50 5.67 5.85 6.08 5.50 5.51 5.39 5.80 5.76 5.57 5.56 6.00 6.28
Amgen Inc. 5.47 6.19 5.89 5.96 6.29 6.42 6.29 6.04 6.73 6.43 6.17 6.73 6.92 6.77 7.00 6.92 6.99
Biogen Inc. 6.05 5.83 5.70 5.29 5.56 5.34 5.44 5.41 5.79 6.47 6.17 6.59 6.81 6.64 7.42 6.68 7.49
Eli Lilly & Co. 4.91 5.10 5.04 5.70 4.68 5.00 4.95 5.19 5.03 5.11 5.06 5.37 5.27 5.41 5.22 5.57 5.68
Johnson & Johnson 5.67 5.52 5.55 5.78 5.79 5.79 5.72 5.56 5.67 5.65 5.46 5.87 6.14 6.07 5.88 6.15 6.53
Merck & Co. Inc. 6.91 5.45 5.57 5.66 5.98 5.66 5.66 5.62 5.84 5.19 5.38 5.65 5.67 5.42 5.70 5.75 6.09
Pfizer Inc. 5.93 5.62 5.48 5.61 6.68 5.32 5.39 5.57 6.39 5.25 5.52 5.92 6.42 5.41 5.72 5.65 5.97
Regeneron Pharmaceuticals Inc. 2.30 2.29 2.31 2.44 2.38 2.39 2.56 2.51 2.42 2.35 2.47 2.55 2.49 2.42 2.17 2.02 2.33
Vertex Pharmaceuticals Inc. 6.57 8.16 7.43 7.45 7.44 7.45 6.67 7.38 8.85 8.71 8.60 9.71 8.47 9.12 8.22 7.10 5.81
Zoetis Inc. 5.76 5.97 6.08 6.10 5.62 6.16 5.74 5.77 5.32 5.08 5.15 5.20 5.35 5.34 5.47 5.31 5.09

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Receivables turnover = (Product salesQ4 2019 + Product salesQ3 2019 + Product salesQ2 2019 + Product salesQ1 2019) ÷ Accounts receivable, net of allowances
= (5,796 + 5,516 + 5,607 + 5,200) ÷ 3,582 = 6.18

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Gilead Sciences Inc.’s receivables turnover ratio improved from Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Cost of goods sold 1,683  1,035  1,000  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 
Accounts payable 713  632  617  577  790  580  623  711  814  696  819  944  1,206  1,052  1,122  945  1,178  1,239  1,571  1,011 
Short-term Activity Ratio
Payables turnover1 6.56 7.22 7.48 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
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.07 4.29 3.97 4.20 4.27 4.68 4.98 4.99 5.14 6.13 6.49 6.70 7.66 8.49 7.70 8.36 8.09
Amgen Inc. 3.18 4.18 4.20 3.86 3.40 3.90 3.92 3.69 3.01 4.64 4.66 4.59 4.54 5.05 4.80 5.15 4.38
Biogen Inc. 3.68 5.22 5.38 5.22 4.90 5.37 5.91 4.89 4.12 5.02 4.68 4.90 5.28 5.23 5.87 4.57 4.64
Bristol-Myers Squibb Co. 3.30 3.89 3.58 3.44 3.46 3.68 3.45 3.70 2.70 3.40 3.55 3.43 2.97 3.21 2.86 2.67 2.50
Eli Lilly & Co. 3.36 4.51 4.52 5.13 4.55 5.04 4.91 4.98 4.30 4.93 4.57 4.64 4.19 4.80 4.48 4.49 3.76
Johnson & Johnson 3.23 3.66 3.92 3.91 3.59 3.91 4.25 4.13 3.47 3.70 3.62 3.57 3.13 3.65 3.56 3.62 3.23
Merck & Co. Inc. 3.78 4.29 4.25 4.43 4.07 4.41 4.39 4.09 4.12 4.85 4.37 5.37 4.95 5.81 5.87 6.67 5.90
Pfizer Inc. 2.42 2.71 2.69 2.68 2.41 2.66 2.76 2.92 2.41 3.22 3.33 3.52 2.72 3.60 3.57 3.41 2.67
Regeneron Pharmaceuticals Inc. 0.87 0.89 0.87 0.76 0.82 1.10 1.19 1.01 1.14
Vertex Pharmaceuticals Inc. 6.25 5.24 6.03 5.26 3.69 4.03 4.01 4.05 3.72 3.26 3.06 3.27 3.42 4.19 3.73 2.17 1.66
Zoetis Inc. 6.62 7.06 6.90 8.43 6.11 7.66 7.77 8.20 6.80 8.38 8.85 7.45 6.29 7.03 7.61 8.25 5.93

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Payables turnover = (Cost of goods soldQ4 2019 + Cost of goods soldQ3 2019 + Cost of goods soldQ2 2019 + Cost of goods soldQ1 2019) ÷ Accounts payable
= (1,683 + 1,035 + 1,000 + 957) ÷ 713 = 6.56

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Gilead Sciences Inc.’s payables turnover ratio decreased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data (US$ in millions)
Current assets 30,296  28,361  33,727  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 
Less: Current liabilities 9,759  9,567  8,961  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 
Working capital 20,537  18,794  24,766  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 
 
Product sales 5,796  5,516  5,607  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 
Short-term Activity Ratio
Working capital turnover1 1.08 1.17 0.89 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
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 6.64 5.57 5.04 5.80 5.44 5.61 5.72 4.78 2.44 1.87 1.79 1.76 1.04 4.45 4.76 5.08 4.11
AbbVie Inc. 0.98 12.30 64.14 10.46 8.75 6.16 4.62 5.68 3.91 4.00 3.51 3.29 3.99 4.22
Allergan PLC 287.30 58.26 21.12 27.78 10.43 9.97 8.39 4.46 1.46 0.56 52.49
Amgen Inc. 3.96 1.10 1.11 1.00 0.93 0.85 0.82 0.73 0.54 0.53 0.54 0.61 0.63 0.61 0.67 0.63 0.70
Biogen Inc. 3.23 2.81 2.38 1.91 2.51 1.94 2.48 1.49 2.30 2.46 2.70 2.56 1.85 1.74 1.95 2.11 2.23
Bristol-Myers Squibb Co. 2.28 0.78 0.82 2.71 3.32 4.04 5.09 3.91 3.64 3.39 3.52 3.58 3.64 3.98 3.58 4.13 5.86
Eli Lilly & Co. 11.54 12.35 14.53 17.59 2.84 2.46 4.52 4.95 4.90 4.72 4.94 8.54 5.16 4.08 4.50 4.61 4.59
Johnson & Johnson 8.81 8.91 7.79 6.34 5.51 4.12 4.49 5.02 6.09 7.42 7.31 1.89 1.86 1.79 1.58 1.73 2.16
Merck & Co. Inc. 8.90 8.42 10.53 6.33 11.53 5.06 6.95 5.72 6.52 4.71 4.25 3.41 2.97 2.87 3.03 3.52 3.74
Pfizer Inc. 3.57 3.39 2.97 4.25 10.34 7.05 4.90 4.35 5.69 4.78 6.74 14.23 4.45 4.06 3.39
Regeneron Pharmaceuticals Inc. 0.86 0.87 0.90 0.78 0.82 0.93 1.13 1.17 1.16 1.20 1.24 1.45 1.72 1.27 1.38 1.32 1.28
Vertex Pharmaceuticals Inc. 1.19 1.07 1.00 1.06 1.12 1.05 1.06 1.09 1.35 1.42 1.37 1.46 1.64 2.13 1.87 1.52 1.15
Zoetis Inc. 2.13 1.72 1.77 1.79 1.83 1.86 1.71 1.67 1.70 1.63 2.79 3.00 2.15 2.10 2.12 2.25 2.33

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Working capital turnover = (Product salesQ4 2019 + Product salesQ3 2019 + Product salesQ2 2019 + Product salesQ1 2019) ÷ Working capital
= (5,796 + 5,516 + 5,607 + 5,200) ÷ 20,537 = 1.08

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Gilead Sciences Inc.’s working capital turnover ratio improved from Q2 2019 to Q3 2019 but then slightly deteriorated from Q3 2019 to Q4 2019.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Inventory turnover 5.07 5.17 5.22 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
Short-term Activity Ratio (no. days)
Average inventory processing period1 72 71 70 68 61 66 70 73 67 100 120 134 136 163 162 159 178
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 119 123 124 116 109 108 109 113 107 112 122 147 98 107 116 115 108
AbbVie Inc. 89 94 94 83 76 82 74 86 83 103 93 86 90 103 118 133 139
Allergan PLC 166 166 157 159 141 150 155 155 152 159 176 180 141 143 103 87 77
Amgen Inc. 300 282 276 261 262 271 278 268 254 262 263 253 241 235 234 223 210
Biogen Inc. 150 137 140 143 187 182 195 192 202 245 221 217 247 257 274 284 263
Bristol-Myers Squibb Co. 194 59 67 69 67 72 70 70 70 79 81 98 92 120 122 119 114
Eli Lilly & Co. 247 225 214 186 233 233 235 268 268 272 276 260 230 254 253 264 250
Johnson & Johnson 119 122 125 122 116 116 116 124 126 147 159 149 137 142 144 138 136
Merck & Co. Inc. 155 156 160 156 147 145 142 152 146 151 154 141 128 133 130 125 115
Pfizer Inc. 296 281 279 264 244 261 254 262 246 258 242 227 201 219 238 259 284
Regeneron Pharmaceuticals Inc. 1,426 1,648 2,260 2,429 2,334 2,011 1,659 1,423 1,309 1,205 1,138 963 749 570 446 398 360
Vertex Pharmaceuticals Inc. 112 122 112 115 111 122 126 143 148 142 145 145 135 123 127 142 168
Zoetis Inc. 258 262 256 251 266 288 290 296 293 305 310 326 329 337 326 308 308

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.07 = 72

2 Click competitor name to see calculations.

Short-term activity 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 number of days of inventory outstanding deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Receivables turnover 6.18 6.64 6.46 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
Short-term Activity Ratio (no. days)
Average receivable collection period1 59 55 56 55 56 58 57 57 55 56 58 51 55 59 66 69 66
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 62 63 65 64 62 63 64 69 70 70 72 74 57 59 63 61 61
AbbVie Inc. 60 61 61 64 60 66 68 72 66 65 66 65 68 72 74 73 76
Allergan PLC 72 70 72 63 66 64 62 60 66 66 68 63 63 65 66 61 58
Amgen Inc. 67 59 62 61 58 57 58 60 54 57 59 54 53 54 52 53 52
Biogen Inc. 60 63 64 69 66 68 67 67 63 56 59 55 54 55 49 55 49
Eli Lilly & Co. 74 72 72 64 78 73 74 70 73 71 72 68 69 67 70 66 64
Johnson & Johnson 64 66 66 63 63 63 64 66 64 65 67 62 59 60 62 59 56
Merck & Co. Inc. 53 67 66 64 61 64 64 65 63 70 68 65 64 67 64 63 60
Pfizer Inc. 62 65 67 65 55 69 68 65 57 70 66 62 57 67 64 65 61
Regeneron Pharmaceuticals Inc. 159 159 158 149 153 152 143 145 151 155 148 143 147 151 168 181 156
Vertex Pharmaceuticals Inc. 56 45 49 49 49 49 55 49 41 42 42 38 43 40 44 51 63
Zoetis Inc. 63 61 60 60 65 59 64 63 69 72 71 70 68 68 67 69 72

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.18 = 59

2 Click competitor name to see calculations.

Short-term activity 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 number of days of receivables outstanding improved from Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Average inventory processing period 72 71 70 68 61 66 70 73 67 100 120 134 136 163 162 159 178
Average receivable collection period 59 55 56 55 56 58 57 57 55 56 58 51 55 59 66 69 66
Short-term Activity Ratio
Operating cycle1 131 126 126 123 117 124 127 130 122 156 178 185 191 222 228 228 244
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 181 186 189 180 171 171 173 182 177 182 194 221 155 166 179 176 169
AbbVie Inc. 149 155 155 147 136 148 142 158 149 168 159 151 158 175 192 206 215
Allergan PLC 238 236 229 222 207 214 217 215 218 225 244 243 204 208 169 148 135
Amgen Inc. 367 341 338 322 320 328 336 328 308 319 322 307 294 289 286 276 262
Biogen Inc. 210 200 204 212 253 250 262 259 265 301 280 272 301 312 323 339 312
Eli Lilly & Co. 321 297 286 250 311 306 309 338 341 343 348 328 299 321 323 330 314
Johnson & Johnson 183 188 191 185 179 179 180 190 190 212 226 211 196 202 206 197 192
Merck & Co. Inc. 208 223 226 220 208 209 206 217 209 221 222 206 192 200 194 188 175
Pfizer Inc. 358 346 346 329 299 330 322 327 303 328 308 289 258 286 302 324 345
Regeneron Pharmaceuticals Inc. 1,585 1,807 2,418 2,578 2,487 2,163 1,802 1,568 1,460 1,360 1,286 1,106 896 721 614 579 516
Vertex Pharmaceuticals Inc. 168 167 161 164 160 171 181 192 189 184 187 183 178 163 171 193 231
Zoetis Inc. 321 323 316 311 331 347 354 359 362 377 381 396 397 405 393 377 380

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 72 + 59 = 131

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Payables turnover 6.56 7.22 7.48 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
Short-term Activity Ratio (no. days)
Average payables payment period1 56 51 49 44 59 47 51 59 68 61 70 86 103 90 98 80 107
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 90 85 92 87 85 78 73 73 71 60 56 54 48 43 47 44 45
Amgen Inc. 115 87 87 95 107 94 93 99 121 79 78 80 80 72 76 71 83
Biogen Inc. 99 70 68 70 74 68 62 75 89 73 78 74 69 70 62 80 79
Bristol-Myers Squibb Co. 110 94 102 106 105 99 106 99 135 107 103 106 123 114 127 137 146
Eli Lilly & Co. 109 81 81 71 80 72 74 73 85 74 80 79 87 76 81 81 97
Johnson & Johnson 113 100 93 93 102 93 86 88 105 99 101 102 116 100 103 101 113
Merck & Co. Inc. 97 85 86 82 90 83 83 89 89 75 83 68 74 63 62 55 62
Pfizer Inc. 151 135 136 136 152 137 132 125 151 113 110 104 134 101 102 107 137
Regeneron Pharmaceuticals Inc. 421 411 419 481 442 333 307 360 321
Vertex Pharmaceuticals Inc. 58 70 61 69 99 91 91 90 98 112 119 111 107 87 98 169 220
Zoetis Inc. 55 52 53 43 60 48 47 45 54 44 41 49 58 52 48 44 62

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.56 = 56

2 Click competitor name to see calculations.

Short-term activity 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 number of days of payables outstanding increased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 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
Selected Financial Data
Average inventory processing period 72 71 70 68 61 66 70 73 67 100 120 134 136 163 162 159 178
Average receivable collection period 59 55 56 55 56 58 57 57 55 56 58 51 55 59 66 69 66
Average payables payment period 56 51 49 44 59 47 51 59 68 61 70 86 103 90 98 80 107
Short-term Activity Ratio
Cash conversion cycle1 75 75 77 79 58 77 76 71 54 95 108 99 88 132 130 148 137
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 91 101 97 93 86 93 100 109 106 122 138 167 107 123 132 132 124
Amgen Inc. 252 254 251 227 213 234 243 229 187 240 244 227 214 217 210 205 179
Biogen Inc. 111 130 136 142 179 182 200 184 176 228 202 198 232 242 261 259 233
Eli Lilly & Co. 212 216 205 179 231 234 235 265 256 269 268 249 212 245 242 249 217
Johnson & Johnson 70 88 98 92 77 86 94 102 85 113 125 109 80 102 103 96 79
Merck & Co. Inc. 111 138 140 138 118 126 123 128 120 146 139 138 118 137 132 133 113
Pfizer Inc. 207 211 210 193 147 193 190 202 152 215 198 185 124 185 200 217 208
Regeneron Pharmaceuticals Inc. 1,164 1,396 1,999 2,097 2,045 1,830 1,495 1,208 1,139
Vertex Pharmaceuticals Inc. 110 97 100 95 61 80 90 102 91 72 68 72 71 76 73 24 11
Zoetis Inc. 266 271 263 268 271 299 307 314 308 333 340 347 339 353 345 333 318

Based on: 10-K (filing date: 2020-02-25), 10-Q (filing date: 2019-11-05), 10-Q (filing date: 2019-08-06), 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).

1 Q4 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 72 + 5956 = 75

2 Click competitor name to see calculations.

Short-term activity 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.