Gilead Sciences Inc (GILD)
Quick ratio
| 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 | US$ in thousands | 9,991,000 | 5,037,000 | 2,772,000 | 4,718,000 | 6,085,000 | 5,705,000 | 5,704,000 | 4,936,000 | 5,412,000 | 4,699,000 | 4,739,000 | 4,296,000 | 5,338,000 | 4,362,000 | 4,893,000 | 4,065,000 | 5,997,000 | 12,886,000 | 6,746,000 | 10,051,000 |
| Short-term investments | US$ in thousands | 1,577,000 | 5,037,000 | 1,426,000 | 1,341,000 | 1,179,000 | 1,159,000 | 8,001,000 | 936,000 | 973,000 | 961,000 | 924,000 | 1,029,000 | 1,182,000 | 1,376,000 | 1,632,000 | 1,601,000 | 1,411,000 | 11,089,000 | 12,168,000 | 10,734,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 12,004,000 | 11,725,000 | 10,781,000 | 13,015,000 | 11,280,000 | 11,945,000 | 13,964,000 | 10,528,000 | 11,237,000 | 10,423,000 | 9,220,000 | 8,558,000 | 11,610,000 | 10,245,000 | 10,214,000 | 9,705,000 | 11,397,000 | 9,509,000 | 10,564,000 | 8,879,000 |
| 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 |
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, also known as the acid-test ratio, is a financial metric used to assess a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered acceptable, as it indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing Gilead Sciences Inc's quick ratio over the past few years, we observe fluctuations in the ratio. As of December 31, 2024, the quick ratio stood at 0.96, indicating that the company had $0.96 of liquid assets available to cover each $1 of current liabilities. This suggests that the company's short-term liquidity position improved compared to prior periods.
However, it is essential to note that the quick ratio was at its lowest point of 0.39 on June 30, 2024, which may have raised concerns about the company's ability to meet its short-term obligations solely with its liquid assets at that point in time. The subsequent increase in the quick ratio to 0.96 by December 31, 2024, reflects an improvement in Gilead Sciences Inc's liquidity position.
Overall, the trend in Gilead Sciences Inc's quick ratio indicates some variability in the company's short-term liquidity management. Investors and stakeholders should continue to monitor this ratio to assess the company's ongoing ability to meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024