Gilead Sciences Inc (GILD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	5,665,000	4,592,000	6,225,000	123,000	5,386,000
Total stockholders’ equity	US$ in thousands	22,833,000	21,240,000	21,069,000	18,202,000	22,525,000
ROE		24.81%	21.62%	29.55%	0.68%	23.91%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,665,000K ÷ $22,833,000K
= 24.81%

The return on equity (ROE) for Gilead Sciences, Inc. has varied over the past five years. In 2023, the ROE was 24.81%, showing an improvement compared to 21.62% in 2022. This indicates that the company generated $24.81 in net income for every dollar of shareholder equity in 2023. The significant increase in ROE from 2022 to 2023 suggests that the company efficiently utilized shareholder funds to generate profits.

In 2021, Gilead Sciences achieved a high ROE of 29.55%, which was the peak over the period under review. This indicates a strong performance in generating returns for shareholders during that year. However, in 2020, the ROE was considerably lower at 0.68%, suggesting a sharp decline in profitability and efficiency in utilizing shareholder equity.

Moreover, in 2019, Gilead Sciences had an ROE of 23.91%, which was relatively close to the ROE in 2023. This indicates a consistent performance in generating returns for shareholders between those two years.

Overall, the fluctuation in ROE over the five-year period indicates varying levels of efficiency in generating profits with shareholder equity. Investors and analysts may further investigate the factors contributing to these fluctuations to assess the company's financial performance and management effectiveness.