Gilead Sciences Inc (GILD)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	41.50	41.22	41.68	42.13	34.29	35.38	36.62	36.48	49.26	59.18	74.27	97.40	125.21	71.01	75.60	71.73	67.24	65.39	64.19	62.40
Days of sales outstanding (DSO)	days	64.85	65.94	58.20	58.07	66.01	60.53	56.48	52.17	62.30	62.32	57.92	56.66	72.46	62.48	53.50	63.74	58.24	54.10	55.44	53.69
Number of days of payables	days	12.77	14.53	15.88	16.76	20.59	14.85	13.85	14.35	21.46	20.66	25.48	31.21	62.79	37.13	38.23	42.92	52.00	46.86	44.80	40.09
Cash conversion cycle	days	93.58	92.63	84.01	83.44	79.71	81.06	79.25	74.29	90.09	100.84	106.71	122.85	134.88	96.36	90.87	92.55	73.48	72.64	74.83	75.99

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.50 + 64.85 – 12.77
= 93.58

The cash conversion cycle for Gilead Sciences, Inc. has shown some variability over the last eight quarters. In Q1 2022, the cash conversion cycle was at its lowest point, at 99.55 days, indicating that on average, it took the company just under a hundred days to convert its investments in inventory and other resources back into cash.

Subsequently, there was a slight increase in the cash conversion cycle, reaching a peak of 132.21 days in Q4 2023. This indicates a longer time frame for Gilead Sciences to convert its investments back into cash.

Overall, the trend of the cash conversion cycle for Gilead Sciences, Inc. shows fluctuations but generally remains within a range of approximately 100 to 130 days. Further analysis would be needed to determine the specific factors driving these changes in the cash conversion cycle and their implications for the company's operational efficiency and liquidity management.