Gilead Sciences Inc (GILD)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	16,085,000	14,443,000	14,772,000	15,996,000	30,296,000
Total current liabilities	US$ in thousands	11,280,000	11,237,000	11,610,000	11,397,000	9,759,000
Current ratio		1.43	1.29	1.27	1.40	3.10

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $16,085,000K ÷ $11,280,000K
= 1.43

The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets. Gilead Sciences, Inc.'s current ratio has fluctuated over the past five years as follows:

- In 2023, the current ratio was 1.43, indicating that the company had $1.43 in current assets for every $1 in current liabilities. This represents an improvement from the previous year.
- In 2022, the current ratio was 1.29, which suggests a slight decrease in liquidity compared to 2021.
- In 2021, the current ratio was 1.27, reflecting a relatively stable liquidity position.
- In 2020, the current ratio was 1.40, which was higher than the two previous years, implying better short-term liquidity.
- In 2019, the current ratio was 3.10, significantly higher than the subsequent years, indicating a very strong liquidity position in that year.

Overall, Gilead Sciences, Inc. has maintained a current ratio above 1 in each of the past five years, indicating a generally healthy ability to meet its short-term obligations. However, fluctuations in the ratio over the years suggest varying levels of liquidity and highlight the importance of monitoring the company's current asset and liability management.