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.
Peer comparison
Dec 31, 2023