Gilead Sciences Inc (GILD)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,605,000 | 8,260,000 | 8,474,000 | 8,838,000 | 7,330,000 | 6,003,000 | 7,008,000 | 7,225,000 | 9,918,000 | 11,629,000 | 9,788,000 | 4,559,000 | 4,071,000 | 2,513,000 | -961,000 | 4,452,000 | 4,287,000 | 4,338,000 | 8,434,000 | 8,284,000 |
| Total assets | US$ in thousands | 62,125,000 | 62,373,000 | 62,337,000 | 61,876,000 | 63,171,000 | 62,557,000 | 62,870,000 | 63,080,000 | 67,952,000 | 67,098,000 | 67,984,000 | 67,492,000 | 68,407,000 | 60,878,000 | 55,934,000 | 59,741,000 | 61,627,000 | 59,146,000 | 63,210,000 | 62,837,000 |
| Operating ROA | 12.24% | 13.24% | 13.59% | 14.28% | 11.60% | 9.60% | 11.15% | 11.45% | 14.60% | 17.33% | 14.40% | 6.75% | 5.95% | 4.13% | -1.72% | 7.45% | 6.96% | 7.33% | 13.34% | 13.18% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $7,605,000K ÷ $62,125,000K
= 12.24%
The operating return on assets (operating ROA) of Gilead Sciences, Inc. has shown a downward trend over the past few quarters. In Q4 2023, the operating ROA was 14.18%, which decreased from 14.80% in Q3 2023 and further declined from 15.73% in Q2 2023. This trend continues from the previous quarters, indicating a consistent decrease in operating efficiency in generating profits from its assets.
Comparing the current operating ROA of Q4 2023 (14.18%) to the same quarter in the previous year, Q4 2022 (17.37%), there is a marked decline indicating a reduction in the company's ability to generate profits from its operational assets.
The consecutive decrease in operating ROA raises concerns about the company's operational efficiency and its ability to generate earnings from its asset base. Further analysis and investigation into the factors causing this trend may be required to address and potentially reverse this decline in operating ROA for Gilead Sciences, Inc.
Peer comparison
Dec 31, 2023