Gilead Sciences Inc (GILD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,991,000 | 6,085,000 | 5,412,000 | 5,338,000 | 5,997,000 |
| Short-term investments | US$ in thousands | 1,577,000 | 1,179,000 | 973,000 | 1,182,000 | 1,411,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 12,004,000 | 11,280,000 | 11,237,000 | 11,610,000 | 11,397,000 |
| Quick ratio | 0.96 | 0.64 | 0.57 | 0.56 | 0.65 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,991,000K
+ $1,577,000K
+ $—K)
÷ $12,004,000K
= 0.96
The quick ratio of Gilead Sciences Inc has fluctuated over the past five years, ranging from 0.56 to 0.96. The quick ratio measures the company's ability to meet its short-term financial obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty in meeting its short-term liabilities using its liquid assets alone.
In 2021 and 2022, the quick ratio was below 1, suggesting that Gilead Sciences may have had challenges in meeting its short-term obligations with its current liquid assets during those years. However, the ratio improved in 2023 and 2024, with the quick ratio exceeding 1 in 2024, indicating a healthier position in terms of liquidity.
Overall, Gilead Sciences Inc should continue to monitor its quick ratio to ensure it maintains a strong liquidity position to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024