Gilead Sciences Inc (GILD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.25% | 39.40% | 54.37% | 80.13% | 77.71% |
| Operating profit margin | 28.99% | 27.75% | 37.68% | 16.49% | 19.10% |
| Pretax margin | 26.35% | 22.11% | 31.54% | 6.90% | 23.08% |
| Net profit margin | 21.60% | 17.39% | 23.65% | 0.50% | 23.99% |
Gilead Sciences, Inc.'s profitability ratios have shown fluctuations over the past five years, indicating changes in its operational efficiency and financial performance:
1. Gross Profit Margin: Gilead's gross profit margin has ranged between 75.82% to 81.48% over the period analyzed. The company's ability to control production costs and generate revenue from its products is evident, although a slight dip in 2023 compared to 2022 suggests potential challenges in maintaining profitability at the top line.
2. Operating Profit Margin: Gilead's operating profit margin has also fluctuated, with a range from 19.10% to 40.23%. The fluctuation in this margin indicates variations in the company's ability to control its operating expenses relative to its revenue generation. The decrease in 2023 compared to 2022 may indicate increased operating expenses relative to revenue.
3. Pretax Margin: Gilead's pretax margin has shown significant variability, ranging from 6.76% to 30.32%. This suggests fluctuations in the company's ability to manage its pre-tax earnings relative to total revenue. The substantial increase in 2023 compared to 2022 may indicate better tax management or improved operational efficiency, leading to higher pre-tax profitability.
4. Net Profit Margin: Gilead's net profit margin has also shown fluctuations, ranging from 0.50% to 23.99%. The significant increase in net profit margin in 2023 compared to 2022 is notable, indicating improved bottom-line profitability. This improvement may be attributed to better cost management, increased revenue, or other operational efficiencies implemented by the company.
Overall, Gilead Sciences, Inc.'s profitability ratios reveal a mix of strengths and areas for improvement. While the company has shown resilience in maintaining profitability over the years, there are fluctuations that suggest the need for continuous monitoring and strategic adjustments to optimize profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.24% | 11.60% | 14.60% | 5.95% | 6.96% |
| Return on assets (ROA) | 9.12% | 7.27% | 9.16% | 0.18% | 8.74% |
| Return on total capital | 17.07% | 15.33% | 20.12% | 5.74% | 13.84% |
| Return on equity (ROE) | 24.81% | 21.62% | 29.55% | 0.68% | 23.91% |
Gilead Sciences, Inc. has shown a consistent performance in terms of profitability ratios over the past five years.
- Operating return on assets (Operating ROA) has varied but generally remained healthy, ranging from 6.96% in 2019 to 17.37% in 2022, with a notable decrease to 14.18% in 2023. This ratio indicates how efficiently the company is generating operating profits from its total assets.
- Return on assets (ROA) experienced fluctuations, with significant increases in 2021 and 2023, reaching a peak of 9.16% in 2021 and a low of 0.18% in 2020. The ROA reflects the company's ability to generate profits from its total assets.
- Return on total capital generally trended upwards from 9.10% in 2019 to 23.62% in 2022, before declining slightly to 18.42% in 2023. This ratio measures the efficiency of the company in generating returns from both debt and equity capital.
- Return on equity (ROE) also showed variability, peaking at 29.55% in 2021 and hitting a low of 0.68% in 2020. The company managed to maintain high ROE levels over the years, reaching 24.81% in 2023. ROE represents the company's profitability from the perspective of its equity shareholders.
Overall, Gilead Sciences, Inc. has demonstrated strong profitability ratios, indicating efficient use of its assets, capital, and equity to generate returns for its stakeholders. However, the company should continue to monitor and manage fluctuations in these ratios to sustain and enhance its profitability in the future.