Gilead Sciences Inc (GILD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,856,000 | 6,775,000 | 9,303,000 | 2,687,000 | 6,177,000 |
| Long-term debt | US$ in thousands | 23,189,000 | 22,957,000 | 25,179,000 | 28,645,000 | 22,094,000 |
| Total stockholders’ equity | US$ in thousands | 22,833,000 | 21,240,000 | 21,069,000 | 18,202,000 | 22,525,000 |
| Return on total capital | 17.07% | 15.33% | 20.12% | 5.74% | 13.84% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,856,000K ÷ ($23,189,000K + $22,833,000K)
= 17.07%
Gilead Sciences, Inc.'s return on total capital has shown fluctuations over the past five years, ranging from 9.10% in 2019 to 23.62% in 2022. In 2023, the return on total capital decreased to 18.42%. This indicates that the company has been able to generate varying levels of return relative to its total capital employed in different years. It is important for the company to closely monitor and analyze the factors affecting the return on total capital to ensure efficient utilization of its capital resources and sustainable financial performance in the long term.
Peer comparison
Dec 31, 2023