Gilead Sciences Inc (GILD)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 6,085,000 5,412,000 5,338,000 5,997,000 11,631,000
Short-term investments US$ in thousands 1,179,000 973,000 1,182,000 1,411,000 12,721,000
Receivables US$ in thousands 4,660,000 4,777,000 4,493,000 4,901,000 3,582,000
Total current liabilities US$ in thousands 11,280,000 11,237,000 11,610,000 11,397,000 9,759,000
Quick ratio 1.06 0.99 0.95 1.08 2.86

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,085,000K + $1,179,000K + $4,660,000K) ÷ $11,280,000K
= 1.06

The quick ratio of Gilead Sciences, Inc. has exhibited fluctuating trends over the past five years. The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that Gilead Sciences has an adequate level of liquid assets to cover its current liabilities.

In 2019, the quick ratio was notably high at 3.01, suggesting a strong liquidity position relative to its short-term liabilities. However, in the following years, the quick ratio decreased, reaching its lowest point of 1.13 in 2021. This decline may indicate a slight deterioration in Gilead Sciences' liquidity position during that period.

In 2022 and 2023, the quick ratio improved to 1.15 and 1.27, respectively. These upticks suggest that Gilead Sciences has strengthened its ability to cover its short-term obligations with liquid assets in those years. Overall, the quick ratio of Gilead Sciences has shown variability but has generally remained above 1, indicating a favorable liquidity position, with a recent uptrend reflecting potential improvements in liquidity management.


Peer comparison

Dec 31, 2023


See also:

Gilead Sciences Inc Quick Ratio