Gilead Sciences Inc (GILD)

Liquidity ratios

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
Current ratio 1.43 1.34 1.02 1.28 1.29 1.30 1.43 1.48 1.27 1.37 1.36 1.37 1.40 3.25 2.33 3.04 3.10 2.96 3.76 3.62
Quick ratio 1.06 0.98 0.78 0.95 0.99 0.96 1.06 1.06 0.95 1.01 1.05 0.99 1.08 2.94 2.10 2.79 2.86 2.74 3.41 3.32
Cash ratio 0.64 0.57 0.48 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 2.50 2.39 3.03 2.97

The liquidity ratios of Gilead Sciences, Inc. show some fluctuations over the past eight quarters.

The current ratio has generally been above 1, indicating that the company has had more current assets than current liabilities to meet its short-term obligations. In the most recent quarter, the current ratio increased to 1.43, which is a positive sign for the company's liquidity position.

The quick ratio, also known as the acid-test ratio, measures the company's ability to pay off its current liabilities without relying on the sale of inventory. Gilead Sciences' quick ratio has also been consistently above 1, suggesting a strong ability to cover short-term obligations with liquid assets. However, it did dip to 0.91 in Q2 2023, which could indicate potential liquidity challenges during that period.

The cash ratio, which is the most stringent measure of liquidity, focuses solely on the company's ability to cover current liabilities with cash and cash equivalents. Gilead Sciences' cash ratio has hovered around 0.80 to 0.86 over the past eight quarters, indicating that the company maintains a significant amount of cash reserves relative to its short-term obligations.

Overall, Gilead Sciences, Inc. has generally maintained healthy liquidity ratios, with the current and quick ratios consistently above 1. However, investors and stakeholders should keep an eye on any fluctuations, particularly in the quick ratio, to assess the company's ongoing liquidity position.

See also:

Gilead Sciences Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

Gilead Sciences, Inc. experienced fluctuations in its cash conversion cycle over the past eight quarters. The cash conversion cycle, which represents the time taken to convert inputs like inventory into cash from sales, ranged between 99.55 days to 132.21 days during this period.

The company's cash conversion cycle reached its peak at 132.21 days in Q4 2023, indicating a slower conversion of resources into cash compared to previous quarters. This may suggest inefficiencies in managing inventory, accounts receivable, and accounts payable during this period.

On the other hand, in Q1 2022, Gilead Sciences, Inc. had the shortest cash conversion cycle of 99.55 days, reflecting a more efficient utilization of resources to generate cash inflows. The company managed to optimize its inventory turnover, collection of receivables, and payment of payables in that quarter.

Overall, Gilead Sciences, Inc. should pay close attention to its cash conversion cycle to improve working capital management and operational efficiency, aiming to minimize the time taken to convert investments in working capital into cash inflows.