Gilead Sciences Inc (GILD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	9,991,000	6,085,000	5,412,000	5,338,000	5,997,000
Short-term investments	US$ in thousands	1,577,000	1,179,000	973,000	1,182,000	1,411,000
Total current liabilities	US$ in thousands	12,004,000	11,280,000	11,237,000	11,610,000	11,397,000
Cash ratio		0.96	0.64	0.57	0.56	0.65

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,991,000K + $1,577,000K) ÷ $12,004,000K
= 0.96

The cash ratio of Gilead Sciences Inc has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was reported at 0.65, indicating that the company had $0.65 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the cash ratio decreased to 0.56 by December 31, 2021, suggesting a lower level of liquidity compared to the previous year.

In the following year, by December 31, 2022, the cash ratio improved slightly to 0.57, although it remained relatively low. By December 31, 2023, the cash ratio increased to 0.64, indicating an improvement in the company's liquidity position. Notably, by December 31, 2024, the cash ratio significantly rose to 0.96, signaling a substantial increase in the company's ability to meet its short-term obligations using its cash reserves.

Overall, the trend in Gilead Sciences Inc's cash ratio demonstrates some variability over the years, with a notable improvement in liquidity by the end of the period under consideration. A higher cash ratio indicates a stronger financial position in terms of cash liquidity and the ability to cover short-term obligations. Investors and stakeholders may view the upward trend positively as it suggests enhanced financial stability and sustainability for the company.