Gilead Sciences Inc (GILD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 28,754,000 | 27,116,000 | 27,281,000 | 27,305,000 | 24,689,000 |
| Total current assets | US$ in thousands | 19,173,000 | 16,085,000 | 15,227,000 | 15,056,000 | 15,816,000 |
| Total current liabilities | US$ in thousands | 12,004,000 | 11,280,000 | 11,237,000 | 11,610,000 | 11,397,000 |
| Working capital turnover | 4.01 | 5.64 | 6.84 | 7.92 | 5.59 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $28,754,000K ÷ ($19,173,000K – $12,004,000K)
= 4.01
The working capital turnover of Gilead Sciences Inc has shown varying trends over the past five years. Starting at 5.59 in December 2020, it increased to 7.92 by the end of 2021, indicating the company was able to generate $7.92 for every $1 of working capital invested.
In the subsequent years, the working capital turnover decreased to 6.84 by December 2022, and then dropped further to 5.64 by the end of 2023. This downward trend suggests a decrease in the efficiency of Gilead Sciences in utilizing its working capital to generate sales.
By December 2024, the working capital turnover further declined to 4.01, which could be a signal of possible challenges in managing working capital efficiently or slower sales turnover in relation to the working capital employed.
It is important for Gilead Sciences Inc to regularly monitor, analyze, and improve its working capital turnover to ensure optimal utilization of resources and improve overall financial performance.
Peer comparison
Dec 31, 2024