Gilead Sciences Inc (GILD)

Liquidity ratios

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
Current ratio 1.50 1.26 1.14 1.08 1.46 1.34 1.10 1.37 1.36 1.33 1.43 1.54 1.30 1.39 1.42 1.36 1.39 3.36 2.49 3.41
Quick 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
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

Gilead Sciences Inc's liquidity ratios have seen fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, declined from a high of 3.41 in March 2020 to a low of 1.08 in March 2024. This downward trend indicates a potential decrease in the company's ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also experienced a decline from 2.34 in March 2020 to 0.39 in June 2024. This suggests that Gilead Sciences may be facing challenges in meeting its immediate payment obligations without relying on inventory.

The cash ratio, which specifically focuses on the company's ability to cover its current liabilities with cash and cash equivalents, followed a similar trend, decreasing from 2.34 in March 2020 to 0.96 in December 2024. This indicates a reduction in the company's cash position relative to its short-term liabilities.

Overall, the declining trend in Gilead Sciences Inc's liquidity ratios raises concerns about its ability to efficiently manage its short-term financial obligations and indicates a potential need for the company to implement strategies to improve its liquidity position in the future.

See also:

Gilead Sciences Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 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

The cash conversion cycle of Gilead Sciences Inc has shown fluctuations over the past few years based on the provided data. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2021, the company managed to reduce its cash conversion cycle significantly from 157.39 days to 206.17 days, indicating an improvement in efficiency in managing its working capital. However, the cycle increased substantially to 240.62 days by December 31, 2021, and then decreased to 146.51 days by March 31, 2022.

Gilead Sciences Inc experienced a further decrease in its cash conversion cycle, reaching 81.20 days by June 30, 2022, which suggests the company became more efficient in managing its cash flows and working capital during that period. However, by December 31, 2023, the cash conversion cycle increased to 205.86 days, indicating a potential delay in the conversion of investments into cash.

The cycle decreased again by March 31, 2024, to 110.53 days, signifying a more efficient management of working capital. The fluctuations in the cash conversion cycle may be influenced by factors like changes in sales patterns, inventory management, and payment terms with suppliers.

Overall, Gilead Sciences Inc's cash conversion cycle has shown variability over the years, and it is essential for the company to continually monitor and optimize its working capital management to ensure smooth cash flow operations.