Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Gilead Sciences Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Inventory Turnover
- The inventory turnover ratio exhibited an overall upward trend from the first quarter of 2021 through 2022, peaking at 4.71 before declining into 2023 and stabilizing at lower levels around 3.4 to 3.6. This indicates that the rate at which inventory was sold and replaced increased significantly until late 2022 but decreased subsequently, reflecting a potential slowdown in inventory movement or increased stock levels.
- Receivables Turnover
- Receivables turnover showed some fluctuations but remained relatively stable between approximately 5.6 and 7.2 over the analyzed period. Notably, a peak occurred in early 2022 at 7.18, followed by a moderate decrease and then partial recovery toward mid-2025. This suggests relatively consistent efficiency in collecting receivables, with some variability likely linked to changes in credit terms or collection procedures.
- Payables Turnover
- The payables turnover ratio experienced variability with no clear long-term trend. It increased sharply in early 2022, reaching a high of 11.89, then dropped significantly to 6.25 at the end of 2022. Subsequently, it showed oscillations between 7.5 and 12.57, indicating irregularity in the speed of paying suppliers. The marked decrease in late 2022 may reflect strategic management of payables or shifting supplier terms.
- Working Capital Turnover
- Working capital turnover exhibited extreme volatility, with typical values ranging from approximately 6 to 9, but with pronounced spikes in mid-2023 and mid-2024 reaching as high as 84.15 and 26.58 respectively. These outliers suggest extraordinary changes in the efficiency of working capital usage, possibly due to one-time events or accounting adjustments. Excluding these spikes, the turnover generally fluctuated moderately without a clear directional trend.
- Average Inventory Processing Period
- The average number of days inventory was held decreased steadily from 131 days in early 2021 to a low of 78 days by late 2021, indicating faster inventory turnover. However, from 2022 onward, this period gradually increased again, reaching around 108 days by mid-2025, which suggests a slowdown in inventory movement or accumulation of stock.
- Average Receivable Collection Period
- The average collection period for receivables mostly ranged between 51 and 65 days, showing slight cyclical fluctuations. Collection periods shortened notably in early 2022 but increased again towards 2023, indicating small variations in credit policy enforcement or customer payment behavior without significant overall deterioration or improvement.
- Operating Cycle
- The operating cycle, defined as the sum of inventory processing and receivable collection periods, declined significantly from 188 days in early 2021 to approximately 132 days at the beginning of 2022. It then rose to about 170 days toward the end of the observed period, suggesting a lengthening of the overall cash-to-cash cycle after initial improvements, which may impact liquidity and operational efficiency.
- Average Payables Payment Period
- The average time taken to pay suppliers decreased from 42 days in early 2021 to a low of around 29 days in mid-2024, then increased again to approximately 49 days late in 2024 before moderating to about 34 days by mid-2025. The variability reflects changes in cash management practices or supplier negotiations, with a general tendency toward faster payments initially, followed by some extension and renewed tightening.
- Cash Conversion Cycle
- The cash conversion cycle shortened significantly from 146 days in the first quarter of 2021 to about 100 days by early 2022, indicating improved efficiency in converting investments in inventory and receivables back into cash. However, starting in 2023, the cash conversion cycle gradually lengthened, peaking again near 135 days by mid-2025. This increase suggests a reduction in operational liquidity efficiency or longer cash flow cycles in recent periods.
Turnover Ratios
Average No. Days
Inventory Turnover
Gilead Sciences Inc., inventory turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of goods sold | 1,501) | 1,540) | 1,581) | 1,574) | 1,544) | 1,552) | 2,090) | 1,565) | 1,442) | 1,401) | 1,396) | 1,395) | 1,442) | 1,424) | 2,627) | 1,223) | 1,390) | 1,361) | ||||||
| Inventories | 1,825) | 1,759) | 1,710) | 1,869) | 2,026) | 1,853) | 1,787) | 1,663) | 1,633) | 1,576) | 1,507) | 1,463) | 1,494) | 1,482) | 1,618) | 1,676) | 1,772) | 1,779) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Inventory turnover1 | 3.40 | 3.55 | 3.66 | 3.62 | 3.33 | 3.59 | 3.64 | 3.49 | 3.45 | 3.57 | 3.75 | 4.71 | 4.50 | 4.50 | 4.08 | 3.21 | 2.99 | 2.79 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 3.42 | 3.71 | 4.04 | 4.09 | 4.86 | 4.83 | 4.98 | 4.74 | 4.30 | 4.53 | 4.87 | 5.54 | 4.99 | 4.96 | 5.58 | 5.76 | 5.45 | 5.40 | ||||||
| Amgen Inc. | 1.88 | 1.88 | 1.84 | 1.75 | 1.42 | 1.14 | 0.89 | 1.41 | 1.38 | 1.31 | 1.30 | 1.34 | 1.40 | 1.48 | 1.58 | 1.53 | 1.53 | 1.53 | ||||||
| Bristol-Myers Squibb Co. | 5.18 | 5.28 | 5.46 | 3.57 | 3.72 | 3.70 | 4.02 | 4.33 | 4.39 | 3.93 | 4.33 | 4.77 | 4.59 | 4.55 | 4.74 | 4.85 | 5.01 | 5.61 | ||||||
| Danaher Corp. | 3.60 | 3.79 | 4.15 | 3.60 | 3.59 | 3.73 | 3.80 | 3.53 | 3.58 | 3.50 | 4.03 | 3.80 | 3.71 | 3.87 | 4.16 | 4.06 | 4.28 | 4.34 | ||||||
| Eli Lilly & Co. | 0.84 | 0.96 | 1.11 | 1.05 | 1.16 | 1.17 | 1.23 | 1.40 | 1.37 | 1.36 | 1.54 | 1.86 | 1.79 | 1.93 | 1.88 | 1.79 | 1.80 | 1.68 | ||||||
| Johnson & Johnson | 2.17 | 2.24 | 2.21 | 2.15 | 2.20 | 2.32 | 2.37 | 2.46 | 2.23 | 2.36 | 2.49 | 2.68 | 2.69 | 2.77 | 2.87 | 2.86 | 2.91 | 2.86 | ||||||
| Merck & Co. Inc. | 2.25 | 2.43 | 2.49 | 2.45 | 2.39 | 2.42 | 2.54 | 2.63 | 2.66 | 2.72 | 2.95 | 3.10 | 3.06 | 2.74 | 2.29 | 2.73 | 2.79 | 2.40 | ||||||
| Pfizer Inc. | 1.52 | 1.60 | 1.65 | 1.66 | 2.05 | 2.15 | 2.45 | 2.65 | 2.31 | 3.07 | 3.82 | 3.62 | 3.66 | 3.67 | 3.40 | 2.78 | 1.80 | 1.28 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.64 | 0.63 | 0.64 | 0.64 | 0.65 | 0.66 | 0.70 | 0.72 | 0.69 | 0.67 | 0.65 | 0.83 | 0.96 | 1.27 | 1.25 | 0.88 | 0.82 | 0.56 | ||||||
| Thermo Fisher Scientific Inc. | 4.57 | 4.82 | 5.06 | 4.62 | 4.83 | 4.93 | 5.06 | 4.83 | 4.64 | 4.62 | 4.60 | 4.29 | 4.03 | 3.87 | 3.88 | 3.90 | 4.03 | 4.01 | ||||||
| Vertex Pharmaceuticals Inc. | 1.06 | 1.14 | 1.27 | 1.37 | 1.53 | 1.65 | 1.71 | 1.71 | 1.90 | 2.06 | 2.35 | 2.69 | 2.70 | 2.83 | 2.56 | 2.58 | 2.52 | 2.56 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Inventory turnover
= (Cost of goods soldQ2 2025
+ Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024)
÷ Inventories
= (1,501 + 1,540 + 1,581 + 1,574)
÷ 1,825 = 3.40
2 Click competitor name to see calculations.
- Cost of Goods Sold
- The cost of goods sold (COGS) exhibits volatility over the observed periods, with values fluctuating between approximately $1,223 million and $2,627 million. A marked spike is visible in the fourth quarter of 2021, reaching $2,627 million, which more than doubles the typical quarterly levels. Following this peak, COGS stabilizes somewhat around $1,400 to $1,600 million with occasional increases, notably in the fourth quarter of 2023 where it again rises substantially to $2,090 million. The recent quarters show a moderate decline in COGS, trending downward from $1,581 million in Q4 2024 to $1,501 million by Q2 2025.
- Inventories
- Inventory levels demonstrate a general declining trend from early 2021 to early 2022, dropping from $1,779 million to a low of $1,463 million by Q3 2022. Subsequent periods reflect a recovery and gradual buildup, with inventories expanding to a peak of $2,026 million in Q2 2024. Following this high, inventory values slightly decline again but remain relatively elevated, fluctuating between $1,700 million and $1,825 million in the latest reported quarters.
- Inventory Turnover Ratio
- The inventory turnover ratio indicates how efficiently inventory is being managed within the company. Starting at 2.79 in Q1 2021, the ratio increases significantly to 4.71 by Q3 2022, suggesting improved efficiency during this timeframe. However, there is a noticeable dip to 3.75 in Q4 2022 and further declines thereafter, with values generally oscillating between 3.33 and 3.66 in subsequent quarters. This decline may reflect the increase in inventory levels coupled with relatively stable or fluctuating cost of goods sold, indicating a potential slowing in inventory movement relative to sales.
- Overall Insights
- The data presents a pattern of fluctuating cost of goods sold and inventory levels, with notable spikes in COGS during Q4 2021 and Q4 2023 corresponding to temporary inventory buildups. The inventory turnover ratio’s rise through mid-2022 followed by a decline suggests a period of improving inventory management succeeded by slower inventory movement. The increase in inventory in 2023 and early 2024 may be indicative of strategic stockpiling or slower sales. Recent trends point to a modest reduction in both COGS and inventories, signaling possible adjustments toward more balanced operational and inventory strategies.
Receivables Turnover
Gilead Sciences Inc., receivables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Product sales | 7,054) | 6,613) | 7,536) | 7,515) | 6,912) | 6,647) | 7,070) | 6,994) | 6,564) | 6,306) | 7,332) | 6,978) | 6,138) | 6,534) | 7,160) | 7,356) | 6,152) | 6,340) | ||||||
| Accounts receivable, net | 4,781) | 4,388) | 4,420) | 4,587) | 4,663) | 4,669) | 4,660) | 4,790) | 4,229) | 4,162) | 4,777) | 4,354) | 4,118) | 3,787) | 4,493) | 4,566) | 4,149) | 3,925) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Receivables turnover1 | 6.01 | 6.51 | 6.47 | 6.14 | 5.92 | 5.84 | 5.78 | 5.68 | 6.43 | 6.43 | 5.65 | 6.16 | 6.60 | 7.18 | 6.01 | 5.95 | 6.34 | 6.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 4.62 | 4.60 | 5.16 | 4.84 | 4.69 | 4.55 | 4.87 | 4.83 | 4.88 | 4.95 | 5.16 | 5.38 | 5.10 | 5.29 | 5.63 | 5.94 | 5.42 | 5.24 | ||||||
| Amgen Inc. | 3.85 | 4.03 | 4.72 | 4.26 | 4.26 | 4.16 | 3.70 | 4.17 | 4.34 | 4.34 | 4.46 | 4.60 | 4.62 | 4.81 | 4.96 | 5.11 | 5.39 | 5.41 | ||||||
| Danaher Corp. | 6.74 | 6.79 | 6.75 | 6.77 | 7.15 | 7.02 | 6.09 | 6.15 | 6.64 | 6.89 | 6.40 | 7.09 | 6.81 | 6.87 | 6.36 | 6.69 | 6.51 | 6.28 | ||||||
| Eli Lilly & Co. | 3.76 | 4.07 | 4.09 | 3.97 | 3.53 | 4.56 | 3.75 | 3.93 | 3.93 | 3.68 | 4.14 | 4.35 | 4.57 | 4.64 | 4.24 | 4.69 | 4.58 | 4.56 | ||||||
| Johnson & Johnson | 5.08 | 5.58 | 5.98 | 5.42 | 5.48 | 5.73 | 5.73 | 5.91 | 5.36 | 5.65 | 5.88 | 6.04 | 5.92 | 6.08 | 6.14 | 6.13 | 6.00 | 5.64 | ||||||
| Merck & Co. Inc. | 5.37 | 5.92 | 6.24 | 5.55 | 5.37 | 5.40 | 5.81 | 5.71 | 5.29 | 5.56 | 6.27 | 6.22 | 5.93 | 5.49 | 5.28 | 5.56 | 6.00 | 5.65 | ||||||
| Pfizer Inc. | 5.29 | 5.27 | 5.55 | 4.18 | 4.93 | 5.09 | 5.33 | 6.25 | 7.66 | 7.57 | 9.16 | 6.21 | 6.68 | 6.99 | 7.08 | 5.81 | 5.23 | 4.70 | ||||||
| Regeneron Pharmaceuticals Inc. | 2.53 | 2.53 | 2.29 | 2.27 | 2.36 | 2.51 | 2.31 | 2.35 | 2.47 | 2.42 | 2.28 | 2.47 | 2.76 | 3.41 | 2.66 | 2.48 | 1.77 | 2.20 | ||||||
| Thermo Fisher Scientific Inc. | 5.03 | 5.07 | 5.23 | 5.13 | 5.33 | 5.36 | 5.21 | 5.19 | 5.43 | 5.53 | 5.53 | 5.76 | 5.53 | 5.21 | 4.92 | 7.03 | 6.99 | 6.46 | ||||||
| Vertex Pharmaceuticals Inc. | 6.03 | 6.15 | 6.85 | 6.07 | 6.24 | 5.68 | 6.31 | 6.27 | 6.11 | 5.95 | 6.19 | 6.28 | 6.26 | 6.15 | 6.66 | 6.48 | 7.19 | 6.56 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Receivables turnover
= (Product salesQ2 2025
+ Product salesQ1 2025
+ Product salesQ4 2024
+ Product salesQ3 2024)
÷ Accounts receivable, net
= (7,054 + 6,613 + 7,536 + 7,515)
÷ 4,781 = 6.01
2 Click competitor name to see calculations.
The financial trends observed over the examined periods reveal fluctuations in product sales and accounts receivable, alongside varying efficiency in receivables management as indicated by the receivables turnover ratio.
- Product Sales
- Sales exhibit a cyclical pattern with peaks generally occurring in the latter quarters of each year. After an initial rise from $6,340 million in the first quarter of 2021 to $7,356 million by the third quarter of 2021, a drop is noticeable in early 2022, with figures falling to $6,138 million in the second quarter. A recovery follows by the end of 2022 reaching $7,332 million. The data from 2023 and 2024 shows similar tendencies: sales dip in the first quarter followed by incremental gains, culminating in a peak of $7,536 million in the fourth quarter of 2024. In early 2025, sales decline again to $6,613 million before showing a slight rebound to $7,054 million in the second quarter.
- Accounts Receivable, Net
- Accounts receivable figures generally mirror the sales pattern, with some lag and variation. Starting from $3,925 million in early 2021, the balance increases steadily through the year, reaching almost $4,777 million in the fourth quarter of 2021. The first half of 2022 sees a decrease followed by a gradual increase toward the end of the year. In 2023 and 2024, accounts receivable fluctuates between approximately $4,160 million and $4,669 million, with no clear trend of consistent increase or decrease. The first half of 2025 shows a slight reduction followed by a resurgence to $4,781 million by mid-year.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates variability, reflecting changes in the efficiency of collecting receivables relative to sales. It started at a high ratio of 6.43 in early 2021, dipped to a low of 5.65 by the end of 2021, suggesting slower turnover, then rebounded strongly to 7.18 in the first quarter of 2022. Following this, the ratio declined gradually over the subsequent quarters to around 5.68 late in 2023, indicating a relative slowdown in collections. The ratio then improved steadily in 2024 and into early 2025, reaching 6.51, before dropping slightly to 6.01 in the second quarter of 2025.
Overall, product sales show seasonal variations with upward momentum over the years, while accounts receivable balances generally track sales but with moderate fluctuations. The receivables turnover ratio changes suggest periods of both improved and diminished efficiency in cash collection, impacting working capital management.
Payables Turnover
Gilead Sciences Inc., payables turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cost of goods sold | 1,501) | 1,540) | 1,581) | 1,574) | 1,544) | 1,552) | 2,090) | 1,565) | 1,442) | 1,401) | 1,396) | 1,395) | 1,442) | 1,424) | 2,627) | 1,223) | 1,390) | 1,361) | ||||||
| Accounts payable | 582) | 737) | 833) | 903) | 537) | 622) | 550) | 586) | 622) | 627) | 905) | 614) | 565) | 583) | 705) | 585) | 608) | 570) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Payables turnover1 | 10.65 | 8.47 | 7.50 | 7.49 | 12.57 | 10.69 | 11.81 | 9.90 | 9.06 | 8.99 | 6.25 | 11.22 | 11.89 | 11.43 | 9.36 | 9.18 | 8.70 | 8.71 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 4.12 | 5.25 | 6.74 | 5.99 | 5.01 | 6.10 | 5.32 | 5.22 | 5.67 | 4.97 | 4.08 | 5.30 | 5.09 | 4.65 | 4.72 | 5.41 | 4.92 | 4.40 | ||||||
| Bristol-Myers Squibb Co. | 2.61 | 3.52 | 3.88 | 3.43 | 3.05 | 3.12 | 3.28 | 3.75 | 3.38 | 3.20 | 3.33 | 3.82 | 3.41 | 3.25 | 3.37 | 3.89 | 2.97 | 3.69 | ||||||
| Danaher Corp. | 5.62 | 5.57 | 5.52 | 6.04 | 5.84 | 5.88 | 5.58 | 5.63 | 5.82 | 5.68 | 5.45 | 5.61 | 5.00 | 5.04 | 4.48 | 5.20 | 5.54 | 5.29 | ||||||
| Eli Lilly & Co. | 2.27 | 2.61 | 2.61 | 2.70 | 2.56 | 2.88 | 2.73 | 2.81 | 2.65 | 3.07 | 3.43 | 4.24 | 4.21 | 5.24 | 4.38 | 4.46 | 4.30 | 3.75 | ||||||
| Johnson & Johnson | 3.07 | 2.97 | 2.66 | 3.03 | 3.03 | 3.23 | 2.76 | 3.29 | 2.75 | 3.05 | 2.66 | 3.08 | 3.15 | 3.26 | 2.70 | 3.32 | 3.38 | 3.34 | ||||||
| Merck & Co. Inc. | 3.82 | 3.98 | 3.72 | 4.26 | 4.39 | 4.48 | 4.11 | 4.59 | 4.58 | 4.34 | 4.08 | 5.16 | 4.86 | 4.25 | 2.96 | 4.54 | 3.93 | 3.81 | ||||||
| Pfizer Inc. | 3.44 | 3.30 | 3.17 | 3.67 | 4.60 | 4.19 | 3.72 | 5.07 | 3.92 | 4.78 | 5.04 | 5.49 | 6.17 | 6.66 | 5.53 | 5.11 | 3.72 | 2.68 | ||||||
| Regeneron Pharmaceuticals Inc. | 2.83 | 2.84 | 2.50 | 3.87 | 3.32 | 2.67 | 2.99 | 3.43 | 3.14 | 2.69 | 2.65 | 3.74 | 4.00 | 5.39 | 4.32 | 4.23 | 3.42 | 2.23 | ||||||
| Thermo Fisher Scientific Inc. | 8.53 | 8.25 | 8.18 | 9.63 | 9.85 | 9.91 | 8.97 | 10.41 | 10.82 | 9.35 | 7.67 | 9.93 | 8.84 | 7.96 | 6.83 | 8.31 | 8.88 | 8.12 | ||||||
| Vertex Pharmaceuticals Inc. | 3.59 | 3.49 | 3.71 | 3.73 | 4.27 | 3.81 | 3.46 | 3.13 | 3.16 | 3.41 | 3.55 | 8.23 | 5.01 | 5.52 | 4.64 | 6.73 | 6.35 | 5.99 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Payables turnover
= (Cost of goods soldQ2 2025
+ Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024)
÷ Accounts payable
= (1,501 + 1,540 + 1,581 + 1,574)
÷ 582 = 10.65
2 Click competitor name to see calculations.
- Cost of Goods Sold (COGS)
- Over the observed periods, the cost of goods sold displayed considerable fluctuation. During 2021, COGS rose sharply to a peak in December, followed by a return to a more stable range through the first quarter of 2022. Throughout 2022 and into 2023, the COGS maintained relative stability with moderate increases, though a notable spike occurred in December 2023. This spike was followed by a gradual decline and stabilization at a slightly elevated level compared to early 2021. The latest quarters of 2024 and into mid-2025 show a consistent pattern of slight decreases, indicating potential improved cost controls or changes in production volume.
- Accounts Payable
- The accounts payable figures exhibited volatility across the review period. Initially, a moderate increase was seen during 2021, followed by a significant rise at the end of 2021. In 2022, payables fluctuated without a clear trend, showing spikes in specific quarters such as December 2022 and September 2024. These irregular peaks suggest variable timing in supplier payments or changes in credit terms. Generally, however, the account payable values tend to revert toward a mid-range level after each peak, indicating cyclical payment behaviors or seasonal effects.
- Payables Turnover Ratio
- The payables turnover ratio shows considerable variability quarter to quarter. Initially, the ratio remained relatively stable near 9 until the last quarter of 2021 when it peaked above 11, suggesting quicker payments or reduced payables balance relative to COGS. However, a significant drop to 6.25 was observed in December 2022, signaling slower payments or higher payables relative to cost of goods sold during that quarter. Subsequent periods demonstrate a return to higher turnover ratios, often above 9, with intermittent declines, pointing to a fluctuating pace of settling obligations. The latest quarters in 2024 and 2025 indicate a trend of modest recovery in payment efficiency, with turnover ratios climbing back above 8 and 10 in select periods.
- Overall Insights
- There is a discernible pattern of cyclical fluctuations across the key financial metrics examined. Cost management appears to undergo periods of sporadic pressure, particularly noticeable in the substantial cost spike at year-end 2023. Accounts payable values oscillate significantly, correlating with shifts in the payables turnover ratio that reflect changing payment practices or credit conditions. The interplay between these metrics suggests that operational or market factors intermittently impact both cost and supplier payment dynamics. Managing these fluctuations will be important to maintaining steady liquidity and cost control going forward.
Working Capital Turnover
Gilead Sciences Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 14,718) | 16,901) | 19,173) | 14,779) | 12,317) | 14,041) | 16,085) | 15,980) | 14,287) | 13,456) | 14,443) | 13,554) | 13,175) | 12,629) | 14,772) | 13,991) | 13,925) | 13,278) | ||||||
| Less: Current liabilities | 11,189) | 12,344) | 12,004) | 11,725) | 10,781) | 13,015) | 11,280) | 11,945) | 13,964) | 10,528) | 11,237) | 10,423) | 9,220) | 8,558) | 11,610) | 10,245) | 10,214) | 9,705) | ||||||
| Working capital | 3,529) | 4,557) | 7,169) | 3,054) | 1,536) | 1,026) | 4,805) | 4,035) | 323) | 2,928) | 3,206) | 3,131) | 3,955) | 4,071) | 3,162) | 3,746) | 3,711) | 3,573) | ||||||
| Product sales | 7,054) | 6,613) | 7,536) | 7,515) | 6,912) | 6,647) | 7,070) | 6,994) | 6,564) | 6,306) | 7,332) | 6,978) | 6,138) | 6,534) | 7,160) | 7,356) | 6,152) | 6,340) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Working capital turnover1 | 8.14 | 6.27 | 3.99 | 9.22 | 17.98 | 26.58 | 5.61 | 6.74 | 84.15 | 9.14 | 8.42 | 8.56 | 6.87 | 6.68 | 8.54 | 7.25 | 7.09 | 7.06 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 130.12 | — | — | ||||||
| Amgen Inc. | 5.35 | 8.36 | 5.40 | 4.83 | 5.19 | 3.39 | 2.25 | 0.81 | 0.84 | 0.82 | 3.82 | 2.52 | 3.67 | 4.34 | 3.37 | 2.55 | 5.35 | 2.84 | ||||||
| Bristol-Myers Squibb Co. | 8.09 | 6.87 | 7.79 | 8.49 | 12.50 | 15.56 | 4.60 | 10.47 | 5.53 | 5.55 | 8.30 | 5.75 | 4.92 | 6.24 | 3.95 | 4.43 | 4.24 | 4.25 | ||||||
| Danaher Corp. | 5.71 | 8.27 | 8.85 | 8.73 | 8.10 | 3.60 | 4.22 | 2.18 | 3.08 | 3.81 | 4.20 | 5.00 | 5.43 | 5.91 | 8.40 | 7.98 | 3.12 | 3.45 | ||||||
| Eli Lilly & Co. | 4.92 | 4.38 | 10.32 | 6.06 | 12.62 | 5.45 | — | 31.79 | 12.21 | 5.77 | 31.84 | 14.71 | 19.45 | 8.19 | 8.33 | 6.73 | 12.14 | 5.21 | ||||||
| Johnson & Johnson | 284.99 | 6.10 | 15.94 | 58.86 | 22.29 | 10.35 | 11.81 | 9.37 | 14.06 | 23.02 | — | 4.88 | 5.02 | 5.57 | 5.95 | 5.97 | 5.93 | 7.26 | ||||||
| Merck & Co. Inc. | 5.77 | 6.19 | 6.19 | 5.86 | 5.14 | 9.68 | 9.29 | 6.69 | 8.86 | 5.63 | 5.16 | 5.58 | 6.39 | 6.09 | 7.62 | 6.51 | 6.97 | 84.97 | ||||||
| Pfizer Inc. | 10.68 | 6.64 | 8.64 | 5,036.00 | — | 29.17 | — | 1.62 | 2.03 | 6.89 | 11.00 | 3.83 | 5.05 | 6.10 | 4.78 | 4.29 | 4.21 | 3.60 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.08 | 1.01 | 0.97 | 0.88 | 0.87 | 0.86 | 0.82 | 0.87 | 0.92 | 0.90 | 0.96 | 1.09 | 1.14 | 1.46 | 1.59 | 1.35 | 1.29 | 1.35 | ||||||
| Thermo Fisher Scientific Inc. | 3.64 | 4.20 | 4.87 | 4.61 | 3.96 | 4.38 | 4.05 | 4.86 | 7.40 | 10.13 | 5.46 | 5.40 | 6.03 | 6.13 | 5.87 | 2.30 | 3.10 | 3.36 | ||||||
| Vertex Pharmaceuticals Inc. | 1.82 | 1.78 | 1.83 | 1.82 | 1.92 | 1.07 | 0.93 | 0.87 | 0.90 | 0.93 | 0.85 | 0.90 | 0.93 | 0.97 | 1.02 | 1.03 | 1.01 | 0.97 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Working capital turnover
= (Product salesQ2 2025
+ Product salesQ1 2025
+ Product salesQ4 2024
+ Product salesQ3 2024)
÷ Working capital
= (7,054 + 6,613 + 7,536 + 7,515)
÷ 3,529 = 8.14
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in working capital, product sales, and working capital turnover ratios over the examined periods. These trends indicate varying operational efficiency and changes in asset management effectiveness.
- Working Capital
- Working capital exhibited a generally volatile pattern across the quarters. Starting at a moderate level of 3,573 million USD, it increased to a high of 4,071 million USD by March 2022, before declining sharply to 323 million USD in June 2023. Subsequent quarters showed a recovery trend, peaking at 7,169 million USD in March 2025, though the value slightly moderated afterward to 3,529 million USD by June 2025. These wide fluctuations suggest periods of intensified liquidity management and possible variations in short-term asset and liability balances.
- Product Sales
- Product sales displayed a relatively stable cyclical trend with seasonal variations. Sales ranged from a low of approximately 6,134 million USD to a high near 7,536 million USD across the timeline. The data indicates consistent demand with periodic peaks, particularly noticeable in the fourth quarters, reflecting potential seasonality in sales performance. Despite some quarter-to-quarter variability, product sales maintained an overall steady level without major declines or spikes.
- Working Capital Turnover Ratio
- The working capital turnover ratio demonstrated substantial volatility, which corresponds with the fluctuating working capital base. Initially, the ratio hovered around 7.0 to 8.5, signaling average efficiency in utilizing working capital to generate sales. However, an extreme outlier of 84.15 was recorded in June 2023, which likely reflects the drastically reduced working capital in that quarter rather than a genuine efficiency improvement. Outside of this anomaly, the ratio showed peaks and troughs, including values as low as 3.99 and as high as 26.58 in later periods, indicating inconsistent working capital management. The ratio’s instability suggests that the company’s capability to convert working capital into revenues was uneven, influenced significantly by shifts in the working capital levels.
In summary, the data highlights that while product sales remained stable with typical seasonal variations, working capital and its turnover ratio experienced significant disruptions. This pattern suggests challenges or strategic shifts in managing short-term financial resources, impacting the operational liquidity and the efficiency in converting capital into sales. Monitoring and managing these working capital fluctuations will be crucial to sustaining operational performance and financial stability in future periods.
Average Inventory Processing Period
Gilead Sciences Inc., average inventory processing period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Inventory turnover | 3.40 | 3.55 | 3.66 | 3.62 | 3.33 | 3.59 | 3.64 | 3.49 | 3.45 | 3.57 | 3.75 | 4.71 | 4.50 | 4.50 | 4.08 | 3.21 | 2.99 | 2.79 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average inventory processing period1 | 108 | 103 | 100 | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | 89 | 114 | 122 | 131 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 107 | 98 | 90 | 89 | 75 | 75 | 73 | 77 | 85 | 81 | 75 | 66 | 73 | 74 | 65 | 63 | 67 | 68 | ||||||
| Amgen Inc. | 194 | 195 | 199 | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | 231 | 239 | 239 | 239 | ||||||
| Bristol-Myers Squibb Co. | 70 | 69 | 67 | 102 | 98 | 99 | 91 | 84 | 83 | 93 | 84 | 76 | 79 | 80 | 77 | 75 | 73 | 65 | ||||||
| Danaher Corp. | 101 | 96 | 88 | 101 | 102 | 98 | 96 | 104 | 102 | 104 | 91 | 96 | 98 | 94 | 88 | 90 | 85 | 84 | ||||||
| Eli Lilly & Co. | 435 | 379 | 329 | 349 | 316 | 312 | 298 | 261 | 267 | 268 | 237 | 196 | 204 | 189 | 194 | 204 | 203 | 217 | ||||||
| Johnson & Johnson | 168 | 163 | 165 | 169 | 166 | 158 | 154 | 149 | 164 | 155 | 147 | 136 | 136 | 132 | 127 | 128 | 125 | 128 | ||||||
| Merck & Co. Inc. | 162 | 150 | 147 | 149 | 153 | 151 | 144 | 139 | 137 | 134 | 124 | 118 | 119 | 133 | 159 | 134 | 131 | 152 | ||||||
| Pfizer Inc. | 239 | 229 | 222 | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | 107 | 131 | 203 | 284 | ||||||
| Regeneron Pharmaceuticals Inc. | 570 | 582 | 572 | 573 | 562 | 553 | 519 | 508 | 532 | 549 | 562 | 440 | 379 | 287 | 292 | 415 | 445 | 653 | ||||||
| Thermo Fisher Scientific Inc. | 80 | 76 | 72 | 79 | 76 | 74 | 72 | 76 | 79 | 79 | 79 | 85 | 91 | 94 | 94 | 94 | 91 | 91 | ||||||
| Vertex Pharmaceuticals Inc. | 345 | 320 | 287 | 267 | 238 | 222 | 214 | 213 | 192 | 177 | 156 | 136 | 135 | 129 | 143 | 142 | 145 | 142 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.40 = 108
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibited a general upward trend from March 31, 2021, reaching a peak in September 30, 2022, at 4.71. After this peak, the ratio experienced a notable decline by the end of 2022, dropping to 3.75, and continued to fluctuate moderately in 2023 and 2024, maintaining levels between approximately 3.3 and 3.6. The most recent figures for the first half of 2025 indicate a slight decrease to around 3.4.
- Average Inventory Processing Period
- This metric, indicative of the average number of days inventory is held, showed an inverse pattern compared to the inventory turnover ratio. From 131 days at the start of 2021, the period steadily decreased to its lowest point of 78 days in September 2022, coinciding with the inventory turnover peak. Subsequently, the processing period increased sharply towards the end of 2022, reaching 97 days, and then fluctuated between 100 and 110 days throughout 2023 and 2024. Early 2025 figures show a continued slight increase to approximately 108 days.
- Overall Insights
- The inverse relationship between inventory turnover and average inventory processing period is evident, reflecting efficient inventory management improvements through 2022, followed by a moderation in these efficiencies in recent periods. The data suggests initial enhancements in turnover rate and decreased holding periods, possibly due to better inventory control or demand management, which later stabilized at a more moderate level. The recent upward trend in the inventory processing period paired with a decreasing turnover ratio might indicate emerging challenges in inventory management or changes in operational factors affecting stock movement speed.
Average Receivable Collection Period
Gilead Sciences Inc., average receivable collection period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Receivables turnover | 6.01 | 6.51 | 6.47 | 6.14 | 5.92 | 5.84 | 5.78 | 5.68 | 6.43 | 6.43 | 5.65 | 6.16 | 6.60 | 7.18 | 6.01 | 5.95 | 6.34 | 6.43 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average receivable collection period1 | 61 | 56 | 56 | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 79 | 79 | 71 | 75 | 78 | 80 | 75 | 76 | 75 | 74 | 71 | 68 | 72 | 69 | 65 | 61 | 67 | 70 | ||||||
| Amgen Inc. | 95 | 91 | 77 | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | 74 | 71 | 68 | 67 | ||||||
| Danaher Corp. | 54 | 54 | 54 | 54 | 51 | 52 | 60 | 59 | 55 | 53 | 57 | 51 | 54 | 53 | 57 | 55 | 56 | 58 | ||||||
| Eli Lilly & Co. | 97 | 90 | 89 | 92 | 103 | 80 | 97 | 93 | 93 | 99 | 88 | 84 | 80 | 79 | 86 | 78 | 80 | 80 | ||||||
| Johnson & Johnson | 72 | 65 | 61 | 67 | 67 | 64 | 64 | 62 | 68 | 65 | 62 | 60 | 62 | 60 | 59 | 60 | 61 | 65 | ||||||
| Merck & Co. Inc. | 68 | 62 | 58 | 66 | 68 | 68 | 63 | 64 | 69 | 66 | 58 | 59 | 62 | 66 | 69 | 66 | 61 | 65 | ||||||
| Pfizer Inc. | 69 | 69 | 66 | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | ||||||
| Regeneron Pharmaceuticals Inc. | 144 | 144 | 160 | 161 | 155 | 146 | 158 | 156 | 148 | 151 | 160 | 148 | 132 | 107 | 137 | 147 | 206 | 166 | ||||||
| Thermo Fisher Scientific Inc. | 73 | 72 | 70 | 71 | 68 | 68 | 70 | 70 | 67 | 66 | 66 | 63 | 66 | 70 | 74 | 52 | 52 | 56 | ||||||
| Vertex Pharmaceuticals Inc. | 61 | 59 | 53 | 60 | 58 | 64 | 58 | 58 | 60 | 61 | 59 | 58 | 58 | 59 | 55 | 56 | 51 | 56 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.01 = 61
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits moderate fluctuations over the reported periods, ranging approximately between 5.65 and 7.18. The ratio peaked in the first quarter of 2022 at 7.18, indicating a relatively higher efficiency in collecting receivables during that period. Following this peak, a general downward trend is observed until the end of 2022, where the ratio reached its lowest point at 5.65. Subsequently, the turnover ratio recovers gradually, settling near 6.5 in mid-2025 before slightly decreasing again to about 6.0 by the second quarter of 2025. Overall, the ratio suggests a stable yet slightly variable receivables management efficiency, with no drastic changes throughout the timeframe.
- Average Receivable Collection Period
- There is an inverse relationship between the average receivable collection period and the receivables turnover ratio, as expected. The collection period decreased significantly to 51 days in March 2022, aligning with the peak in receivables turnover. Afterward, the number of days increased and peaked at 65 days by the end of 2022, reflecting a slower collection process. From 2023 onwards, the collection period fluctuates moderately, generally staying within a range of 56 to 64 days. By mid-2025, the period trends slightly downward but ends at 61 days, indicative of a modest delay in collection relative to earlier periods. This pattern corroborates the observations from the turnover ratio, showing cyclical yet controlled variations in collection dynamics.
- Overall Insights
- The data suggests that receivables management experienced a phase of higher efficiency in early 2022, with faster collections and higher turnover. This was followed by a period of declining efficiency during late 2022. Since 2023, the company has maintained a relatively steady performance with minor fluctuations but no significant deterioration or improvement. The consistency in these metrics over several quarters signals effective but cautious credit and collection policies. Monitoring these trends can assist in identifying subtle changes in working capital management and potential impacts on liquidity.
Operating Cycle
Gilead Sciences Inc., operating cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 108 | 103 | 100 | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | 89 | 114 | 122 | 131 | ||||||
| Average receivable collection period | 61 | 56 | 56 | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 169 | 159 | 156 | 160 | 172 | 164 | 163 | 169 | 163 | 159 | 162 | 137 | 136 | 132 | 150 | 175 | 180 | 188 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||
| AbbVie Inc. | 186 | 177 | 161 | 164 | 153 | 155 | 148 | 153 | 160 | 155 | 146 | 134 | 145 | 143 | 130 | 124 | 134 | 138 | ||||||
| Amgen Inc. | 289 | 286 | 276 | 295 | 343 | 409 | 510 | 347 | 349 | 363 | 363 | 351 | 339 | 323 | 305 | 310 | 307 | 306 | ||||||
| Danaher Corp. | 155 | 150 | 142 | 155 | 153 | 150 | 156 | 163 | 157 | 157 | 148 | 147 | 152 | 147 | 145 | 145 | 141 | 142 | ||||||
| Eli Lilly & Co. | 532 | 469 | 418 | 441 | 419 | 392 | 395 | 354 | 360 | 367 | 325 | 280 | 284 | 268 | 280 | 282 | 283 | 297 | ||||||
| Johnson & Johnson | 240 | 228 | 226 | 236 | 233 | 222 | 218 | 211 | 232 | 220 | 209 | 196 | 198 | 192 | 186 | 188 | 186 | 193 | ||||||
| Merck & Co. Inc. | 230 | 212 | 205 | 215 | 221 | 219 | 207 | 203 | 206 | 200 | 182 | 177 | 181 | 199 | 228 | 200 | 192 | 217 | ||||||
| Pfizer Inc. | 308 | 298 | 288 | 306 | 252 | 242 | 218 | 196 | 206 | 167 | 135 | 160 | 155 | 151 | 159 | 194 | 273 | 362 | ||||||
| Regeneron Pharmaceuticals Inc. | 714 | 726 | 732 | 734 | 717 | 699 | 677 | 664 | 680 | 700 | 722 | 588 | 511 | 394 | 429 | 562 | 651 | 819 | ||||||
| Thermo Fisher Scientific Inc. | 153 | 148 | 142 | 150 | 144 | 142 | 142 | 146 | 146 | 145 | 145 | 148 | 157 | 164 | 168 | 146 | 143 | 147 | ||||||
| Vertex Pharmaceuticals Inc. | 406 | 379 | 340 | 327 | 296 | 286 | 272 | 271 | 252 | 238 | 215 | 194 | 193 | 188 | 198 | 198 | 196 | 198 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 108 + 61 = 169
2 Click competitor name to see calculations.
The data reveals several important trends in the company’s working capital management over the analyzed quarters, particularly in inventory processing, receivable collection, and the overall operating cycle. These metrics provide insight into the efficiency of the company's operations and cash flow management.
- Average Inventory Processing Period
- The inventory processing period shows a clear improvement from March 2021 through the end of 2021, declining from 131 days to a low of 89 days, indicating faster turnover of inventory. This trend continues to a lesser degree into mid-2022, reaching as low as 78 days in September 2022. However, after this period, the days begin to rise again, peaking at 110 days in mid-2024 before slightly declining. This suggests a recent slowdown in inventory turnover efficiency, potentially indicating inventory accumulation or challenges in sales or production processes.
- Average Receivable Collection Period
- The collection period exhibits relative stability with minor fluctuations. Starting at 57 days in early 2021, it peaks at 65 days by the end of 2021 before decreasing and generally stabilizing around the low 60s between 2022 and early 2024. In the latest quarters, there is a small fluctuation between 56 and 62 days. This pattern suggests consistent credit policy enforcement and collections management with no significant deterioration or improvement.
- Operating Cycle
- The operating cycle, which combines inventory processing and receivable collection periods, mirrors the trends seen in the components. It declined sharply from 188 days in early 2021 to 150 days by the end of 2021, indicating improved overall operational efficiency. This improvement stabilizes in the first half of 2022 but then reverses with an upward trend reaching 172 days in mid-2024. The latest figures reveal a slight reduction and subsequent increase again up to 169 days by mid-2025. The fluctuating operating cycle suggests variability in working capital efficiency, likely influenced by inventory management more than receivables.
In summary, the company achieved notable improvements in inventory turnover and operating cycle efficiency through 2021. However, the subsequent increase in inventory days and the rising operating cycle from late 2022 onwards indicate emerging operational challenges or strategic shifts impacting the inventory management performance. Receivable collection remains stable overall, signifying consistent credit control. These dynamics may warrant further investigation into inventory management practices and underlying causes for slower turnover in recent periods.
Average Payables Payment Period
Gilead Sciences Inc., average payables payment period calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Payables turnover | 10.65 | 8.47 | 7.50 | 7.49 | 12.57 | 10.69 | 11.81 | 9.90 | 9.06 | 8.99 | 6.25 | 11.22 | 11.89 | 11.43 | 9.36 | 9.18 | 8.70 | 8.71 | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||
| Average payables payment period1 | 34 | 43 | 49 | 49 | 29 | 34 | 31 | 37 | 40 | 41 | 58 | 33 | 31 | 32 | 39 | 40 | 42 | 42 | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 89 | 70 | 54 | 61 | 73 | 60 | 69 | 70 | 64 | 73 | 90 | 69 | 72 | 78 | 77 | 67 | 74 | 83 | ||||||
| Bristol-Myers Squibb Co. | 140 | 104 | 94 | 106 | 120 | 117 | 111 | 97 | 108 | 114 | 109 | 96 | 107 | 112 | 108 | 94 | 123 | 99 | ||||||
| Danaher Corp. | 65 | 66 | 66 | 60 | 63 | 62 | 65 | 65 | 63 | 64 | 67 | 65 | 73 | 72 | 82 | 70 | 66 | 69 | ||||||
| Eli Lilly & Co. | 161 | 140 | 140 | 135 | 142 | 127 | 134 | 130 | 138 | 119 | 106 | 86 | 87 | 70 | 83 | 82 | 85 | 97 | ||||||
| Johnson & Johnson | 119 | 123 | 137 | 120 | 121 | 113 | 132 | 111 | 133 | 120 | 137 | 118 | 116 | 112 | 135 | 110 | 108 | 109 | ||||||
| Merck & Co. Inc. | 95 | 92 | 98 | 86 | 83 | 81 | 89 | 80 | 80 | 84 | 89 | 71 | 75 | 86 | 123 | 80 | 93 | 96 | ||||||
| Pfizer Inc. | 106 | 110 | 115 | 99 | 79 | 87 | 98 | 72 | 93 | 76 | 72 | 66 | 59 | 55 | 66 | 71 | 98 | 136 | ||||||
| Regeneron Pharmaceuticals Inc. | 129 | 129 | 146 | 94 | 110 | 137 | 122 | 106 | 116 | 136 | 138 | 98 | 91 | 68 | 84 | 86 | 107 | 164 | ||||||
| Thermo Fisher Scientific Inc. | 43 | 44 | 45 | 38 | 37 | 37 | 41 | 35 | 34 | 39 | 48 | 37 | 41 | 46 | 53 | 44 | 41 | 45 | ||||||
| Vertex Pharmaceuticals Inc. | 102 | 105 | 98 | 98 | 85 | 96 | 106 | 117 | 115 | 107 | 103 | 44 | 73 | 66 | 79 | 54 | 57 | 61 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.65 = 34
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited notable fluctuations over the periods analyzed. It initially increased from 8.71 to 9.36 within 2021, indicating a trend towards faster payment of payables. This upward trend continued sharply into the first half of 2022, peaking at 11.89 in June 2022, which suggests an enhanced efficiency in settling payables. However, a significant decline to 6.25 was observed in December 2022, signaling a slowdown in payment activity. Subsequently, the ratio rebounded with fluctuations, reaching a high of 12.57 by June 2024, followed by a decline to 7.49 in September 2024. The most recent data points show a recovery with the ratio increasing again to 10.65 by June 2025. Overall, the pattern suggests periods of both efficient payables management and intermittent delays in payment cycles.
- Average Payables Payment Period (Days)
- This metric inversely correlates with the payables turnover ratio and demonstrates corresponding trends. Initially steady around 42 days during early 2021, the payment period shortened progressively to a low of 29 days in June 2024, reflecting quicker settlements to suppliers. Conversely, a marked increase to 58 days occurred in December 2022, indicating slower payment during that quarter. Following this peak, the payment period decreased once again, though occasional elevations, such as 49 days in both September and December 2024, suggest periods of extended payment terms or delays. The most recent figure in June 2025 stands at 34 days, showing improved payment promptness relative to the earlier part of the timeline.
- Insights and Patterns
- The data reveal cyclical behavior in payable management, with alternating phases of rapid payments and deferred settlements. Notably, the notable spike in payment period and corresponding dip in turnover ratio in late 2022 indicate a temporary elongation of cash conversion cycles or possible strategic changes in working capital management. Subsequent recovery phases imply corrective actions to restore financial efficiency. The oscillations in these metrics may reflect seasonal business cycles, changes in supplier terms, or broader operational adjustments impacting cash flow timing. Overall, the trends underscore the company’s responsiveness in managing payables, balancing between maintaining supplier relations and optimizing cash flow.
Cash Conversion Cycle
Gilead Sciences Inc., cash conversion cycle calculation (quarterly data)
No. days
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||
| Average inventory processing period | 108 | 103 | 100 | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | 89 | 114 | 122 | 131 | ||||||
| Average receivable collection period | 61 | 56 | 56 | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | ||||||
| Average payables payment period | 34 | 43 | 49 | 49 | 29 | 34 | 31 | 37 | 40 | 41 | 58 | 33 | 31 | 32 | 39 | 40 | 42 | 42 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Cash conversion cycle1 | 135 | 116 | 107 | 111 | 143 | 130 | 132 | 132 | 123 | 118 | 104 | 104 | 105 | 100 | 111 | 135 | 138 | 146 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 200 | 216 | 222 | 234 | 270 | 349 | 441 | 277 | 285 | 290 | 273 | 282 | 267 | 245 | 228 | 243 | 233 | 223 | ||||||
| Danaher Corp. | 90 | 84 | 76 | 95 | 90 | 88 | 91 | 98 | 94 | 93 | 81 | 82 | 79 | 75 | 63 | 75 | 75 | 73 | ||||||
| Eli Lilly & Co. | 371 | 329 | 278 | 306 | 277 | 265 | 261 | 224 | 222 | 248 | 219 | 194 | 197 | 198 | 197 | 200 | 198 | 200 | ||||||
| Johnson & Johnson | 121 | 105 | 89 | 116 | 112 | 109 | 86 | 100 | 99 | 100 | 72 | 78 | 82 | 80 | 51 | 78 | 78 | 84 | ||||||
| Merck & Co. Inc. | 135 | 120 | 107 | 129 | 138 | 138 | 118 | 123 | 126 | 116 | 93 | 106 | 106 | 113 | 105 | 120 | 99 | 121 | ||||||
| Pfizer Inc. | 202 | 188 | 173 | 207 | 173 | 155 | 120 | 124 | 113 | 91 | 63 | 94 | 96 | 96 | 93 | 123 | 175 | 226 | ||||||
| Regeneron Pharmaceuticals Inc. | 585 | 597 | 586 | 640 | 607 | 562 | 555 | 558 | 564 | 564 | 584 | 490 | 420 | 326 | 345 | 476 | 544 | 655 | ||||||
| Thermo Fisher Scientific Inc. | 110 | 104 | 97 | 112 | 107 | 105 | 101 | 111 | 112 | 106 | 97 | 111 | 116 | 118 | 115 | 102 | 102 | 102 | ||||||
| Vertex Pharmaceuticals Inc. | 304 | 274 | 242 | 229 | 211 | 190 | 166 | 154 | 137 | 131 | 112 | 150 | 120 | 122 | 119 | 144 | 139 | 137 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 108 + 61 – 34 = 135
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's operational efficiency over the observed periods, as reflected by key working capital metrics.
- Average Inventory Processing Period
- This metric shows a general decline from 131 days in early 2021 to a low of 78 days in the third quarter of 2022, indicating an improvement in inventory turnover rates during this period. However, following this trough, there is a reversal with the period increasing again, reaching up to 110 days by mid-2024 and hovering around 100-108 days through early 2025. This suggests a loosening of inventory management efficiency in the latter periods examined.
- Average Receivable Collection Period
- The receivable collection period demonstrates some fluctuations but remains relatively stable overall, oscillating mainly between 51 and 65 days. There was a downward shift around the first quarter of 2022 to mid-2022, reaching near 51 days, followed by a gradual increase peaking around 63 days at the end of 2023. Subsequently, it stabilizes again in the low 60s. This indicates moderate consistency in the company's ability to collect receivables with minor variability.
- Average Payables Payment Period
- This metric exhibits a more volatile pattern. Initially, the payment period stays around 40-42 days but drops markedly to the low 30s during 2022, before a sudden spike to 58 days at the end of 2022. Afterward, it declines again to a low of 29 days by mid-2024, then increases sharply multiple times, with another peak of 49 days in late 2024. The fluctuations imply inconsistency in the company's payment practices, potentially reflecting changing negotiation terms or strategic payment timing impacts.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) declines significantly from 146 days in early 2021 to a low of 100 days in the first quarter of 2022, indicating an improvement in overall working capital efficiency. However, from that point onward, the CCC fluctuates and gradually increases, reaching 143 days by mid-2024, then showing some improvement but ending near 135 days in mid-2025. The increasing CCC after early 2022 suggests a slowing in the company's cash flow efficiency, possibly driven by the worsening inventory processing period and payment period fluctuations.
In summary, the company experienced improvements in working capital management and operational efficiency until early 2022, as shown by reductions in the inventory processing period and cash conversion cycle. However, subsequent periods report a reversal, with deteriorating inventory turnover and payable payment delays contributing to a lengthened cash conversion cycle. Receivables management remains relatively stable throughout. The variability in these metrics highlights areas that may require further focus to stabilize working capital efficiency and optimize cash flow management going forward.