Gilead Sciences Inc (GILD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.36 | 0.37 | 0.42 | 0.36 |
| Debt-to-capital ratio | 0.50 | 0.52 | 0.54 | 0.61 | 0.50 |
| Debt-to-equity ratio | 1.02 | 1.08 | 1.20 | 1.57 | 0.98 |
| Financial leverage ratio | 2.72 | 2.97 | 3.23 | 3.76 | 2.74 |
Gilead Sciences, Inc.'s solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.39 to 0.46, with the most recent figure standing at 0.40 as of December 31, 2023. This ratio suggests that around 40% of the company's assets are financed by debt.
The debt-to-capital ratio, which includes both equity and debt in the denominator, has fluctuated over the years, ranging from 0.52 to 0.63. As of December 31, 2023, it stood at 0.52, indicating that 52% of the company's capital structure is comprised of debt.
The debt-to-equity ratio reflects the extent to which debt is being used to finance the company's operations relative to shareholders' equity. Gilead's debt-to-equity ratio has varied from 1.09 to 1.73 over the past five years, with the latest figure at 1.09 as of December 31, 2023. This ratio implies that for every dollar of shareholder equity, the company has $1.09 in debt.
Lastly, the financial leverage ratio, which shows the company's total assets relative to equity, has also shown fluctuations, ranging from 2.72 to 3.76. As of December 31, 2023, the financial leverage ratio was 2.72, indicating that the company's assets are 2.72 times greater than its equity.
Overall, Gilead Sciences, Inc. displays relatively stable solvency ratios over the years, with a mix of debt and equity financing. The trend of these ratios should be monitored to assess the company's long-term financial health and ability to sustain its operations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.32 | 7.25 | 9.29 | 2.73 | 6.21 |
The interest coverage ratio measures a company's ability to meet interest obligations on its outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest payments from operating income.
For Gilead Sciences, Inc., the interest coverage ratio has shown a generally healthy trend over the past five years, ranging from 4.31 in 2019 to 11.74 in 2022. Specifically, in 2023, Gilead Sciences has an interest coverage ratio of 9.33, which indicates the company's ability to cover its interest expenses 9.33 times over with its operating income.
Overall, the interest coverage ratios for Gilead Sciences, Inc. have been relatively stable and well above industry benchmarks, suggesting the company has a robust ability to meet its interest obligations from its operational earnings. This indicates a lower risk of default on its debt obligations due to its strong earnings capacity.