Gilead Sciences Inc (GILD)
Payables 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 |
| Payables | US$ in thousands | 550,000 | 905,000 | 705,000 | 844,000 | 713,000 |
| Payables turnover | 28.50 | 17.69 | 17.04 | 5.81 | 7.02 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,673,000K ÷ $550,000K
= 28.50
The payables turnover ratio for Gilead Sciences, Inc. has shown a fluctuating trend over the past five years. The ratio increased significantly from 2019 to 2020, indicating a more frequent turnover of payables. This upward trend continued in 2021, suggesting that the company was managing its payables more efficiently.
However, in 2022, there was a notable decrease in the payables turnover ratio, which may indicate a slower pace of paying off its obligations to suppliers. It is essential to understand the reasons behind this decline and assess if it represents a strategy shift or potential liquidity challenges.
The most recent data for 2023 shows a substantial improvement in the payables turnover ratio, reaching 11.81. This sharp increase suggests that Gilead Sciences, Inc. has once again improved its payables management, potentially negotiating better terms with suppliers or streamlining its payment processes.
Overall, analyzing the payables turnover ratio for Gilead Sciences, Inc. provides insights into the company's efficiency in managing its trade payables and its relationships with suppliers over the years. It is crucial for stakeholders to monitor these fluctuations and trends to understand the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023