Gilead Sciences Inc (GILD)

Inventory turnover

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	6,251,000	6,230,000	6,221,000	6,119,000	5,968,000	5,804,000	5,634,000	5,634,000	5,657,000	6,888,000	6,716,000	6,664,000	6,601,000	5,372,000	5,290,000	4,964,000	4,572,000	4,857,000	4,751,000	4,687,000
Inventory	US$ in thousands	3,589,000	1,869,000	2,026,000	1,853,000	3,366,000	3,202,000	3,181,000	3,010,000	2,820,000	2,602,000	1,494,000	2,675,000	2,734,000	2,797,000	2,988,000	2,996,000	3,014,000	1,953,000	1,967,000	2,021,000
Inventory turnover		1.74	3.33	3.07	3.30	1.77	1.81	1.77	1.87	2.01	2.65	4.50	2.49	2.41	1.92	1.77	1.66	1.52	2.49	2.42	2.32

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,251,000K ÷ $3,589,000K
= 1.74

Inventory turnover is a key financial ratio that provides insights into how efficiently a company is managing its inventory. For Gilead Sciences Inc, the inventory turnover ratio has fluctuated over the past few years. From March 31, 2020, to December 31, 2021, the inventory turnover ratio ranged from 1.52 to 2.49, showing some variability in the speed at which the company was selling its inventory.

In the later quarters of 2021, Gilead Sciences Inc experienced a decrease in its inventory turnover, with ratios between 1.66 and 1.92, indicating a slower rate of inventory turnover. This could suggest potential challenges in managing inventory levels or potential issues with demand for the company's products during this period.

However, from June 30, 2022, to September 30, 2024, there was a significant improvement in Gilead's inventory turnover ratio, with ratios between 2.65 and 4.50. This increase indicates that the company was more efficient in selling its inventory during this period, potentially due to better inventory management practices or increased demand for its products.

Overall, Gilead Sciences Inc's inventory turnover ratio has shown fluctuations over the analyzed period, with both periods of slower and faster inventory turnover. Monitoring this ratio can help investors and stakeholders gain a better understanding of the company's operational efficiency and inventory management practices.