Gilead Sciences Inc (GILD)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,673,000 | 16,006,000 | 12,013,000 | 4,906,000 | 5,005,000 |
| Inventory | US$ in thousands | 1,787,000 | 1,507,000 | 1,618,000 | 1,683,000 | 922,000 |
| Inventory turnover | 8.77 | 10.62 | 7.42 | 2.92 | 5.43 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,673,000K ÷ $1,787,000K
= 8.77
Gilead Sciences, Inc.'s inventory turnover has witnessed fluctuations over the past five years. The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher turnover ratio is generally preferable as it implies that the company is selling its inventory more frequently during the year.
In 2023, the inventory turnover ratio was 3.64, showing a slight decrease from the previous year's ratio of 3.75 in 2022. This decrease might suggest that the company took longer to sell its inventory compared to the previous year.
Comparing to 2021, where the ratio was 4.08, the 2023 ratio is lower, indicating a decline in inventory turnover efficiency. However, in 2020, the ratio was significantly lower at 2.72, which implies that the company improved its inventory management in 2023 compared to that specific year.
The highest inventory turnover ratio in the past five years was recorded in 2019 at 5.07, indicating that the company was very efficient in selling its inventory during that year.
Overall, Gilead Sciences, Inc. should monitor its inventory turnover ratio closely to ensure that inventory is managed effectively to support the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023