Gilead Sciences Inc (GILD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	9,991,000	5,037,000	2,772,000	4,718,000	6,085,000	5,705,000	5,704,000	4,936,000	5,412,000	4,699,000	4,739,000	4,296,000	5,338,000	4,362,000	4,893,000	4,065,000	5,997,000	12,886,000	6,746,000	10,051,000
Short-term investments	US$ in thousands	1,577,000	5,037,000	1,426,000	1,341,000	1,179,000	1,159,000	8,001,000	936,000	973,000	961,000	924,000	1,029,000	1,182,000	1,376,000	1,632,000	1,601,000	1,411,000	11,089,000	12,168,000	10,734,000
Total current liabilities	US$ in thousands	12,004,000	11,725,000	10,781,000	13,015,000	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
Cash ratio		0.96	0.86	0.39	0.47	0.64	0.57	0.98	0.56	0.57	0.54	0.61	0.62	0.56	0.56	0.64	0.58	0.65	2.52	1.79	2.34

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, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown fluctuations over the indicated periods.

From March 31, 2020, to March 31, 2022, the cash ratio ranged from 0.58 to 2.52, indicating fluctuations in the company's cash position in relation to its short-term liabilities during this period. Subsequently, from June 30, 2022, to September 30, 2024, the cash ratio fluctuated within a narrower range, from 0.39 to 0.98.

The lower cash ratios observed in the latter part of the data set, especially from March 31, 2023, to June 30, 2024, may suggest a decrease in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. This could be due to various factors such as increased short-term liabilities, lower cash reserves, or a combination of both.

Overall, while the cash ratio provides insights into a company's liquidity position, it is essential to consider other financial ratios and factors to gain a comprehensive understanding of Gilead Sciences Inc's financial health and liquidity management.