Gilead Sciences Inc (GILD)

Working capital 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
Revenue (ttm)	US$ in thousands	26,229,000	26,516,000	26,520,000	26,161,000	26,413,000	26,256,000	26,613,000	26,496,000	26,325,000	26,743,000	26,144,000	25,341,000	24,689,000	23,147,000	22,174,000	22,716,000	22,449,000	22,365,000	22,357,000	22,320,000
Total current assets	US$ in thousands	16,085,000	15,980,000	14,287,000	13,456,000	14,443,000	13,554,000	13,175,000	12,629,000	14,772,000	13,991,000	13,925,000	13,278,000	15,996,000	30,926,000	24,643,000	26,950,000	30,296,000	28,361,000	33,727,000	34,024,000
Total current liabilities	US$ in thousands	11,280,000	11,945,000	13,964,000	10,528,000	11,237,000	10,423,000	9,220,000	8,558,000	11,610,000	10,245,000	10,214,000	9,705,000	11,397,000	9,509,000	10,564,000	8,879,000	9,759,000	9,567,000	8,961,000	9,397,000
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

December 31, 2023 calculation

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

The working capital turnover ratio for Gilead Sciences, Inc. has varied over the past 8 quarters, as shown in the table. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio signifies that the company is efficiently managing its working capital to generate revenue.

In Q2 2023, Gilead Sciences, Inc. had an exceptionally high working capital turnover of 85.04, which may suggest a short-term increase in sales relative to its working capital. This could be attributed to various factors such as efficient inventory management, effective accounts receivable collection, or a rapid turnover of assets.

On the other hand, in Q1 2023, the working capital turnover ratio decreased to 9.23, which is still relatively high compared to previous quarters. This decrease may indicate a slower rate of sales relative to the working capital available during that period.

Overall, the working capital turnover ratio for Gilead Sciences, Inc. has exhibited fluctuations over the past 8 quarters, but generally remained at healthy levels, suggesting effective management of working capital resources to support sales activities.