Gilead Sciences Inc (GILD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,667,000 | 7,605,000 | 6,749,000 | 9,279,000 | 2,653,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,330,000 | 22,833,000 | 21,209,000 | 21,064,000 | 18,221,000 |
| Return on total capital | 8.62% | 33.31% | 31.82% | 44.05% | 14.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,667,000K ÷ ($—K + $19,330,000K)
= 8.62%
Based on the data provided, the return on total capital for Gilead Sciences Inc has fluctuated over the years. In December 2020, the company's return on total capital was 14.56%, showing a moderate performance. However, there was a significant improvement in December 2021, with a return on total capital of 44.05%, indicating a strong performance and efficient utilization of capital.
In the following years, Gilead Sciences Inc maintained relatively good returns on total capital, with percentages consistently above 30%, reaching 33.31% in December 2023. This suggests the company continued to effectively generate returns from its total capital investment.
However, by December 2024, the return on total capital dropped to 8.62%, indicating a decrease in the efficiency of capital utilization or possibly a decline in profitability. It would be important for stakeholders to investigate the reasons behind this decline and assess the company's strategies to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024