Gilead Sciences Inc (GILD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	4.79	9.26	18.10	26.75	5.24	6.73	18.92	7.04	6.84	7.81	6.96	5.90	7.92	6.95	6.22	7.39	5.59	1.03	1.40	1.06

The analysis of Gilead Sciences Inc's activity ratios reveals the following trends:

1. Inventory Turnover:
- Gilead's inventory turnover ratio has fluctuated over the years, ranging from a low of 1.52 in December 2020 to a high of 4.50 in June 2022.
- Generally, a higher inventory turnover indicates more efficient management of inventory and faster sales of products. The significant increase in the ratio in June 2022 suggests an improvement in inventory management efficiency.

2. Receivables Turnover:
- The data indicates that receivables turnover information is not available for analysis. This lack of information makes it challenging to assess the efficiency of Gilead's accounts receivable management.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover information is not provided, making it difficult to evaluate Gilead's management of accounts payable.

4. Working Capital Turnover:
- Gilead's working capital turnover ratio has varied significantly over the years, with a notable surge to 26.75 in March 2024 from 5.59 in December 2020.
- A higher working capital turnover indicates that the company is efficiently utilizing its working capital to generate sales. The significant increase in the ratio in March 2024 suggests improved operational efficiency and effective management of working capital.

In conclusion, while Gilead Sciences Inc has demonstrated fluctuations in its activity ratios, particularly in inventory turnover and working capital turnover, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall working capital management and efficiency in handling receivables and payables.

Average number of days

		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
Days of inventory on hand (DOH)	days	209.56	109.50	118.87	110.53	205.86	201.37	206.08	195.00	181.95	137.88	81.20	146.51	151.18	190.04	206.17	220.29	240.62	146.77	151.12	157.39
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data, we can analyze the activity ratios of Gilead Sciences Inc as follows:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures the average number of days a company holds its inventory before selling it.
- Gilead Sciences Inc's DOH has fluctuated over the years, ranging from a high of 240.62 days on December 31, 2020, to a low of 81.20 days on June 30, 2022.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, potentially reducing carrying costs and minimizing the risk of obsolete inventory.

2. Days of Sales Outstanding (DSO):
- Unfortunately, specific DSO data for Gilead Sciences Inc is not available in the provided information.
- DSO measures the average number of days it takes for a company to collect payment after a sale.
- A lower DSO implies faster collection of accounts receivable and better liquidity management.

3. Number of Days of Payables:
- Similarly, the data for the number of days of payables for Gilead Sciences Inc is not available.
- The number of days of payables ratio indicates the average number of days a company takes to pay its suppliers.
- A longer period indicates that the company is taking longer to pay its bills, potentially indicating a better utilization of cash or good supplier relationships.

In summary, Gilead Sciences Inc's inventory management has shown fluctuations over the years, with some improvements observed in more recent periods. Unfortunately, without data on DSO and payables, a comprehensive analysis of the company's overall efficiency in managing its cash conversion cycle cannot be provided.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	4.94	4.94	4.98	5.07	5.19	5.23	5.33	5.46	5.33	5.12	4.97	4.81	4.77	4.98
Total asset turnover	0.49	0.52	0.52	0.49	0.44	0.44	0.44	0.44	0.43	0.43	0.44	0.44	0.40	0.41	0.39	0.38	0.36	0.38	0.40	0.38

Gilead Sciences Inc's Fixed Asset Turnover ratio has shown a consistent improvement from 4.98 in March 2020 to 5.19 in June 2022, before slightly declining to 4.98 by December 2022. This ratio measures the efficiency of the company in generating revenues from its fixed assets over time, with higher values indicating better utilization of fixed assets.

On the other hand, the Total Asset Turnover ratio has fluctuated over the periods, with a general increasing trend from 0.38 in March 2020 to 0.52 by June 2024. This ratio reflects how well the company is using its total assets to generate sales, with higher values indicating more effective management of assets to generate revenue.

Overall, the upward trend in Total Asset Turnover suggests that Gilead Sciences has been improving its efficiency in utilizing both fixed and total assets to generate revenue over the years, which is a positive sign for the company's operational performance.