Gilead Sciences Inc (GILD)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	15,716,000	14,725,000	14,300,000	13,655,000	16,041,000	15,092,000	14,893,000	14,830,000	11,989,000	10,337,000	8,708,000	6,667,000	4,906,000	5,181,000	5,079,000	5,017,000	5,005,000	4,923,000	5,027,000	5,253,000
Inventory	US$ in thousands	1,787,000	1,663,000	1,633,000	1,576,000	1,507,000	1,463,000	1,494,000	1,482,000	1,618,000	1,676,000	1,772,000	1,779,000	1,683,000	1,008,000	1,052,000	986,000	922,000	882,000	884,000	898,000
Inventory turnover		8.79	8.85	8.76	8.66	10.64	10.32	9.97	10.01	7.41	6.17	4.91	3.75	2.92	5.14	4.83	5.09	5.43	5.58	5.69	5.85

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,716,000K ÷ $1,787,000K
= 8.79

The inventory turnover for Gilead Sciences, Inc. has been relatively stable over the past eight quarters. The company's inventory turnover ratio ranged from 3.45 to 4.71 during this period. This indicates that, on average, Gilead Sciences, Inc. is able to sell and replace its inventory approximately 3.5 to 4.7 times per year.

A decreasing trend in inventory turnover could suggest that the company is facing challenges in selling its products or managing its inventory efficiently. However, the slight fluctuations in Gilead Sciences, Inc.'s inventory turnover ratio do not indicate any significant concerns in this regard.

Overall, the inventory turnover analysis suggests that Gilead Sciences, Inc. has been managing its inventory effectively, balancing the need to maintain sufficient inventory levels with the goal of optimizing the use of its resources.