Gilead Sciences Inc (GILD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 62,125,000 | 63,171,000 | 67,952,000 | 68,407,000 | 61,627,000 |
| Total stockholders’ equity | US$ in thousands | 22,833,000 | 21,240,000 | 21,069,000 | 18,202,000 | 22,525,000 |
| Financial leverage ratio | 2.72 | 2.97 | 3.23 | 3.76 | 2.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $62,125,000K ÷ $22,833,000K
= 2.72
The financial leverage ratio of Gilead Sciences, Inc. has been fluctuating over the past five years. In 2020, the ratio was relatively high at 3.76, indicating a higher level of financial leverage compared to the other years. This could suggest that the company relied more on debt to finance its operations and growth during that period.
In 2021 and 2022, the financial leverage ratio decreased to 3.23 and 2.97 respectively, signifying a reduction in the company's reliance on debt to fund its activities. However, in 2023, the ratio further declined to 2.72, indicating a decrease in financial leverage compared to the previous year.
Overall, the trend in the financial leverage ratio of Gilead Sciences, Inc. shows a mix of high and decreasing leverage levels over the years, which could imply varying strategies in managing the company's capital structure and debt levels. Further analysis of the company's financial statements and business operations would provide more insights into the factors driving these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023