Gilead Sciences Inc (GILD)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	8,329,000	8,384,000	10,119,000	9,096,000	8,499,000	8,260,000	8,474,000	8,838,000	6,694,000	5,367,000	6,372,000	6,589,000	9,918,000	11,629,000	9,788,000	4,559,000	4,071,000	2,513,000	-961,000	4,452,000
Revenue (ttm)	US$ in thousands	28,749,000	28,295,000	27,800,000	27,450,000	27,116,000	27,390,000	27,382,000	27,043,000	27,281,000	27,136,000	27,515,000	27,472,000	27,305,000	27,482,000	26,638,000	25,564,000	24,689,000	23,147,000	22,174,000	22,716,000
Operating profit margin		28.97%	29.63%	36.40%	33.14%	31.34%	30.16%	30.95%	32.68%	24.54%	19.78%	23.16%	23.98%	36.32%	42.31%	36.74%	17.83%	16.49%	10.86%	-4.33%	19.60%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $8,329,000K ÷ $28,749,000K
= 28.97%

The operating profit margin of Gilead Sciences Inc has shown variations over the quarters in the provided data period from March 31, 2020, to December 31, 2024.

The operating profit margin started at 19.60% in March 2020, indicating that for every dollar of revenue generated, the company had a profit of $0.1960 after covering all operating expenses.

The margin turned negative in June 2020, reaching -4.33%, suggesting that operating expenses exceeded operating income during that period, resulting in a loss. This could be due to factors such as increased expenses or a decline in revenue.

Subsequently, the operating profit margin improved, reaching double digits in September 2020 and December 2020 at 10.86% and 16.49%, respectively. This indicated better cost management and efficiency in generating operating income during these quarters.

The trend continued to improve in the following quarters, with the operating profit margin peaking at 42.31% in September 2021. This significant increase could be attributed to factors like increased revenue, cost control measures, or efficiency improvements in operations.

Moving forward, the operating profit margin remained relatively stable in the range of 23% to 36% through June 2024. This level of consistency indicates that the company is effectively managing its operating expenses relative to its operating income during this period.

In the most recent quarter, December 31, 2024, the operating profit margin decreased slightly to 28.97%. It is important for the company to monitor this trend to ensure that profitability is sustained over time.

Overall, the operating profit margin analysis highlights the company's ability to generate profit from its core operations, emphasizing the importance of maintaining a balance between revenue growth and cost management to sustain profitability in the long run.