Gilead Sciences Inc (GILD)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.50	0.51	0.50	0.52	0.52	0.52	0.55	0.56	0.54	0.54	0.59	0.60	0.61	0.61	0.54	0.50	0.50	0.52	0.52	0.52

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $23,189,000K ÷ ($23,189,000K + $22,833,000K)
= 0.50

The debt-to-capital ratio of Gilead Sciences, Inc. has been relatively stable over the past eight quarters, ranging between 0.52 and 0.57. This ratio measures the proportion of debt used to finance the company's operations compared to its total capital, which includes debt and equity.

The gradual increase in the debt-to-capital ratio from 0.52 in Q4 2022 to 0.57 in Q1 2022 indicates that the company has been relying more on debt financing compared to equity financing during this period. This trend suggests that Gilead Sciences may be taking on more debt to fund its operations or growth initiatives.

It is essential to monitor the debt-to-capital ratio over time to assess the company's leverage and financial risk. A higher ratio indicates higher financial leverage and potentially greater risk, as the company has more debt relative to its total capital. On the other hand, a lower ratio suggests a more conservative capital structure with less reliance on debt financing.

Overall, maintaining a balanced debt-to-capital ratio is crucial for Gilead Sciences to ensure financial stability and sustainability in the long term.