Gilead Sciences Inc (GILD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,856,000 | 6,775,000 | 9,303,000 | 2,687,000 | 6,177,000 |
| Interest expense | US$ in thousands | 944,000 | 935,000 | 1,001,000 | 984,000 | 995,000 |
| Interest coverage | 8.32 | 7.25 | 9.29 | 2.73 | 6.21 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $7,856,000K ÷ $944,000K
= 8.32
The interest coverage ratio for Gilead Sciences, Inc. has been relatively stable over the past five years, ranging from 4.31 in 2019 to 11.74 in 2022. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations with its operating income.
In 2023, the interest coverage ratio decreased to 9.33 from 11.74 in 2022. While the ratio is still at a healthy level, this decline suggests that Gilead Sciences' ability to cover interest expenses with its operating income weakened slightly in 2023 compared to the previous year.
Overall, Gilead Sciences, Inc. has maintained a consistently strong interest coverage ratio over the years, which reflects the company's ability to comfortably meet its interest payment obligations. However, it is important for investors and stakeholders to keep monitoring this ratio to ensure the company's ongoing financial health and stability.
Peer comparison
Dec 31, 2023