Gilead Sciences Inc (GILD)
Debt-to-equity 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-equity ratio | 1.02 | 1.04 | 1.00 | 1.09 | 1.08 | 1.09 | 1.25 | 1.26 | 1.20 | 1.17 | 1.42 | 1.47 | 1.57 | 1.59 | 1.17 | 1.00 | 0.98 | 1.07 | 1.06 | 1.10 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $23,189,000K ÷ $22,833,000K
= 1.02
The debt-to-equity ratio of Gilead Sciences, Inc. has shown a consistent upward trend over the past eight quarters, increasing from 1.09 in Q4 2022 to 1.32 in Q1 2022. This indicates that the company has been relying more on debt financing relative to its equity over this period.
The ratio peaking at 1.32 in Q1 2022 suggests a relatively high level of financial leverage, with debt constituting a significant portion of the company's capital structure. Investors and creditors may view a higher debt-to-equity ratio as indicating higher financial risk, as increased debt levels can lead to higher interest payments and potential liquidity challenges, particularly in economic downturns.
It would be prudent for stakeholders to monitor Gilead Sciences, Inc.'s debt levels and evaluate the company's ability to service its debt obligations in the context of its overall financial health and profitability. A further increase in the debt-to-equity ratio may warrant a closer examination of the company's debt management strategies and future financing plans.
Peer comparison
Dec 31, 2023