Gilead Sciences Inc (GILD)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	7,856,000	8,202,000	8,308,000	8,238,000	6,775,000	5,514,000	6,544,000	6,868,000	9,303,000	10,388,000	7,762,000	2,958,000	2,687,000	2,750,000	434,000	5,823,000	6,177,000	5,299,000	9,473,000	9,160,000
Long-term debt	US$ in thousands	23,189,000	23,189,000	21,209,000	22,956,000	22,957,000	22,953,000	25,195,000	25,183,000	25,179,000	25,175,000	27,914,000	27,907,000	28,645,000	27,792,000	21,103,000	22,098,000	22,094,000	22,090,000	24,084,000	24,080,000
Total stockholders’ equity	US$ in thousands	22,833,000	22,314,000	21,158,000	20,997,000	21,240,000	21,081,000	20,236,000	19,927,000	21,069,000	21,470,000	19,703,000	18,952,000	18,202,000	17,445,000	18,027,000	22,067,000	22,525,000	20,604,000	22,616,000	21,951,000
Return on total capital		17.07%	18.03%	19.61%	18.74%	15.33%	12.52%	14.40%	15.23%	20.12%	22.27%	16.30%	6.31%	5.74%	6.08%	1.11%	13.18%	13.84%	12.41%	20.28%	19.90%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,856,000K ÷ ($23,189,000K + $22,833,000K)
= 17.07%

Gilead Sciences, Inc. has demonstrated a consistent and relatively stable return on total capital over the past eight quarters. The return on total capital ranged from 18.42% to 23.62% during this period. The company's return on total capital peaked in Q4 2022 at 23.62% and has since remained at levels above 18%.

The trend indicates that Gilead Sciences, Inc. has been effectively utilizing its capital resources to generate returns for its stakeholders. The company's ability to consistently deliver positive returns on total capital reflects efficient capital allocation and operational performance.

Overall, the steady performance in return on total capital suggests that Gilead Sciences, Inc. has been effectively managing its capital structure and deploying its resources to generate value for its shareholders. An analysis of this metric over time can help investors assess the company's financial health and operational efficiency.