Gilead Sciences Inc (GILD)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 209.56 + — – —
= 209.56
The cash conversion cycle of Gilead Sciences Inc has shown fluctuating trends over the past few years. Beginning at 157.39 days on March 31, 2020, the company managed to reduce its cash conversion cycle to 81.20 days by June 30, 2022, indicating an improvement in efficiency in managing its cash, inventory, and receivables.
However, there was a subsequent uptick in the cash conversion cycle, reaching a peak of 240.62 days on December 31, 2020, and then fluctuating around the 200-day mark until June 30, 2023. This period of increased days in the cycle may indicate potential issues with working capital management, such as slower collections, extended payment periods, or excess inventory levels.
From September 30, 2023, to December 31, 2024, there was a gradual decrease in the cash conversion cycle, suggesting that the company may have implemented strategies to streamline its operations and improve its cash flow efficiency. Overall, monitoring the cash conversion cycle can provide insights into Gilead Sciences' ability to convert its investments in raw materials and labor into cash inflows and optimize its working capital management.
Peer comparison
Dec 31, 2024