Gilead Sciences Inc (GILD)
Payables 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 |
| Payables | US$ in thousands | 550,000 | 586,000 | 622,000 | 627,000 | 905,000 | 614,000 | 565,000 | 583,000 | 705,000 | 585,000 | 608,000 | 570,000 | 844,000 | 527,000 | 532,000 | 590,000 | 713,000 | 632,000 | 617,000 | 577,000 |
| Payables turnover | 28.57 | 25.13 | 22.99 | 21.78 | 17.72 | 24.58 | 26.36 | 25.44 | 17.01 | 17.67 | 14.32 | 11.70 | 5.81 | 9.83 | 9.55 | 8.50 | 7.02 | 7.79 | 8.15 | 9.10 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,716,000K ÷ $550,000K
= 28.57
The payables turnover ratio for Gilead Sciences, Inc. has shown variability over the quarters provided. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times during a period the company pays off its suppliers.
The trend indicates an improvement in the efficiency of paying off suppliers in the most recent quarters, as the payables turnover has increased from 8.99 in Q1 2023 to 11.81 in Q4 2023. This suggests that Gilead Sciences, Inc. is taking fewer days to pay its bills, which can be a positive sign of strong liquidity management and possibly better relationships with suppliers.
Comparing to the previous year, the payables turnover in Q4 2023 is higher than in the same period in 2022, indicating a favorable progression in managing payables. However, it should be noted that there were fluctuations in the ratio throughout the year, with the lowest turnover of 6.25 in Q4 2022.
Overall, the increasing trend in the payables turnover ratio in the recent quarters suggests that Gilead Sciences, Inc. is effectively managing its accounts payable by settling its obligations to suppliers at a faster pace.
Peer comparison
Dec 31, 2023