Gilead Sciences Inc (GILD)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 26,229,000 26,413,000 26,325,000 24,689,000 22,449,000
Total current assets US$ in thousands 16,085,000 14,443,000 14,772,000 15,996,000 30,296,000
Total current liabilities US$ in thousands 11,280,000 11,237,000 11,610,000 11,397,000 9,759,000
Working capital turnover 5.46 8.24 8.33 5.37 1.09

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $26,229,000K ÷ ($16,085,000K – $11,280,000K)
= 5.46

The working capital turnover of Gilead Sciences, Inc. has shown fluctuating trends over the past five years. In 2023, the working capital turnover ratio was 5.64, indicating that the company generated $5.64 in revenue for every dollar of working capital invested. This represents a decrease from the prior year where the ratio was 8.51, suggesting a decrease in the efficiency of the company in generating revenue from its working capital.

Comparing to the year 2021, where the working capital turnover was 8.64, the ratio has decreased, indicating a decline in the efficiency of utilizing working capital for revenue generation. In 2020, the ratio was 5.37, showing an improvement from the previous year but lower than the performance in 2021. The year 2019 had the lowest working capital turnover ratio at 1.09, indicating that the company was less efficient in generating revenue from its working capital that year.

Overall, despite fluctuations in the working capital turnover ratio over the years, Gilead Sciences, Inc. should aim to maintain or improve this ratio to ensure efficient utilization of its working capital in generating revenue.


Peer comparison

Dec 31, 2023


See also:

Gilead Sciences Inc Working Capital Turnover