Gilead Sciences Inc (GILD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.05 | 2.72 | 2.98 | 3.23 | 3.75 |
Gilead Sciences Inc demonstrates strong solvency ratios as indicated by the data provided. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent and stable trend of 0.00 over the years from 2020 to 2024. This implies that the company has minimal debt in relation to its assets, capital, and equity, signifying a low level of financial risk.
Furthermore, the Financial leverage ratio, which measures the company's reliance on debt financing, displays a declining trend from 3.75 in 2020 to 2.72 in 2023, before slightly increasing to 3.05 in 2024. This decreasing trend indicates that Gilead Sciences Inc has been gradually reducing its reliance on debt to finance its operations, which is a positive sign for long-term financial health.
Overall, the solvency ratios suggest that Gilead Sciences Inc has a strong financial position with a conservative capital structure and prudent debt management, indicating its ability to meet its financial obligations and maintain stability in the face of economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.71 | 8.06 | 7.22 | 9.27 | 2.70 |
The interest coverage ratio for Gilead Sciences Inc has displayed varying levels over the past few years. In December 2020, the ratio stood at 2.70, indicating that the company's operating income was sufficient to cover its interest expenses 2.70 times.
By December 2021, Gilead Sciences Inc significantly improved its interest coverage to 9.27, reflecting a stronger ability to meet its interest obligations from its operating earnings.
In 2022, the interest coverage ratio decreased to 7.22, but it still demonstrated a healthy ability to cover interest payments from operating profits.
The ratio further improved in December 2023 to 8.06, suggesting the company's capacity to handle its interest expenses was enhanced compared to the previous year.
However, there was a notable decline in interest coverage by December 2024, with the ratio dropping to 1.71. This decrease may raise concerns about Gilead Sciences Inc's ability to comfortably cover its interest charges from its operating income.
Overall, fluctuations in the interest coverage ratio warrant monitoring to ensure Gilead Sciences Inc maintains a sustainable balance between its operating earnings and interest obligations.