Gilead Sciences Inc (GILD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.63	5.54	6.27	6.29	5.53	6.03	6.46	7.00	5.86	5.86	6.30	6.44	5.04	5.84	6.82	5.73	6.27	6.75	6.58	6.80
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
Working capital turnover	5.46	6.57	82.11	8.93	8.24	8.39	6.73	6.51	8.33	7.14	7.05	7.09	5.37	1.08	1.57	1.26	1.09	1.19	0.90	0.91

The activity ratios of Gilead Sciences, Inc. reflect the efficiency with which the company manages its assets and liabilities to generate sales and cash flow.

1. Inventory turnover: Gilead's inventory turnover has been relatively stable over the periods, with an average ratio of around 3.8. This indicates that the company is turning over its inventory approximately 3-4 times per year. A decreasing trend in inventory turnover may suggest inefficiencies in managing inventory levels or potential issues with sales and production forecasting.

2. Receivables turnover: Gilead's receivables turnover has also been consistent, averaging around 6.3 over the periods. This indicates that the company collects its accounts receivable approximately 6-7 times per year. A higher receivables turnover ratio is generally preferable as it signifies a quicker collection of outstanding payments from customers.

3. Payables turnover: Gilead's payables turnover has shown variability, with an average ratio of around 9.6. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can sometimes signal favorable terms or good relationships with vendors. However, consistently high payables turnover ratios may also point to liquidity issues or difficulties in managing cash flow.

4. Working capital turnover: Gilead's working capital turnover has fluctuated significantly, with wide variations between periods. While a higher working capital turnover ratio is generally preferred as it indicates more efficient use of working capital to generate sales, the extreme variability in Gilead's ratios may suggest inconsistencies in managing working capital over time.

Overall, Gilead Sciences, Inc. should continue to monitor and assess its activity ratios to ensure optimal management of assets and liabilities for sustained operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	41.50	41.22	41.68	42.13	34.29	35.38	36.62	36.48	49.26	59.18	74.27	97.40	125.21	71.01	75.60	71.73	67.24	65.39	64.19	62.40
Days of sales outstanding (DSO)	days	64.85	65.94	58.20	58.07	66.01	60.53	56.48	52.17	62.30	62.32	57.92	56.66	72.46	62.48	53.50	63.74	58.24	54.10	55.44	53.69
Number of days of payables	days	12.77	14.53	15.88	16.76	20.59	14.85	13.85	14.35	21.46	20.66	25.48	31.21	62.79	37.13	38.23	42.92	52.00	46.86	44.80	40.09

The activity ratios of Gilead Sciences, Inc. provide insights into the efficiency of the company's operations in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
DOH measures the average number of days it takes for a company to sell its inventory. Gilead Sciences' DOH has been fluctuating over the quarters, ranging from 77.53 days to 105.79 days. A higher DOH indicates that the company is taking longer to sell its inventory, which can tie up capital and potentially lead to obsolescence. The recent increase in DOH suggests that Gilead may be facing challenges in inventory management and sales.

2. Days of Sales Outstanding (DSO):
DSO reflects the average number of days it takes for a company to collect payment after a sale is made. Gilead Sciences' DSO has also varied over time, with values ranging from 50.32 days to 63.91 days. A lower DSO is generally favorable as it indicates quicker collection of receivables. The recent uptick in DSO suggests that Gilead may be experiencing delays in collecting payments from its customers.

3. Number of Days of Payables:
This ratio represents the average number of days it takes for a company to pay its suppliers. Gilead Sciences' days of payables have shown significant fluctuations, ranging from 30.71 days to 58.39 days. A higher number of days of payables may indicate that the company is taking longer to settle its bills, which can have cash flow benefits but may strain supplier relationships. The recent decrease in days of payables indicates that Gilead has been paying its invoices more promptly.

Overall, Gilead Sciences' activity ratios suggest a need for closer monitoring of inventory management and accounts receivable collection processes. Efforts to optimize these processes can help enhance operational efficiency and cash flow management for the company.

Long-term

	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
Fixed asset turnover	4.93	4.76	4.79	4.77	4.82	4.91	5.02	5.04	5.14	5.31	5.23	5.08	4.97	4.81	4.77	4.98	4.99	5.11	5.26	5.42
Total asset turnover	0.42	0.43	0.43	0.42	0.42	0.42	0.42	0.42	0.39	0.40	0.38	0.38	0.36	0.38	0.40	0.38	0.36	0.38	0.35	0.36

Gilead Sciences, Inc.'s long-term activity ratios for fixed asset turnover and total asset turnover show stable performance over the past eight quarters.

The fixed asset turnover ratio has remained relatively consistent, fluctuating between 4.92 and 5.23 during this period. This indicates that the company generates $5.10 of revenue for every dollar invested in fixed assets in Q4 2023. The consistent levels of fixed asset turnover suggest that Gilead Sciences efficiently utilizes its fixed assets to generate sales revenue.

Meanwhile, the total asset turnover ratio has also shown stability, remaining around 0.44 in each quarter. This means that Gilead Sciences generates $0.44 of revenue for every dollar invested in total assets. The consistent performance of the total asset turnover ratio suggests that the company efficiently utilizes its total assets to generate sales revenue, reflecting operational efficiency in utilizing both fixed and current assets.

Overall, the stable performance of both the fixed asset turnover and total asset turnover ratios reflects Gilead Sciences' effective utilization of assets to generate revenue, indicating efficient management of its long-term assets.