Gilead Sciences Inc (GILD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.37 | 0.34 | 0.37 | 0.36 | 0.37 | 0.40 | 0.40 | 0.37 | 0.38 | 0.41 | 0.41 | 0.42 | 0.46 | 0.38 | 0.37 | 0.36 | 0.37 | 0.38 | 0.38 |
| 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 |
| 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 |
| Financial leverage ratio | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | 3.23 | 3.13 | 3.45 | 3.56 | 3.76 | 3.49 | 3.10 | 2.71 | 2.74 | 2.87 | 2.79 | 2.86 |
Gilead Sciences, Inc. has maintained relatively stable solvency ratios over the quarters presented.
The debt-to-assets ratio remained consistent at around 0.40 throughout the quarters, indicating that on average, 40% of the company's assets were financed by debt. This suggests a relatively conservative capital structure.
The debt-to-capital and debt-to-equity ratios show a slight upward trend, indicating increasing leverage over time. The debt-to-capital ratio increased from 0.52 in Q4 2022 to 0.54 in Q4 2023, while the debt-to-equity ratio rose from 1.09 to 1.20 during the same period. This suggests that the company has been relying more on debt to finance its operations compared to equity.
The financial leverage ratio has also increased gradually from 2.72 in Q4 2022 to 2.97 in Q4 2023, indicating that the company's financial risk has increased as more debt has been used to support its operations.
Overall, Gilead Sciences, Inc. exhibits a stable solvency position with manageable levels of leverage based on the trend in these ratios. However, stakeholders should continue to monitor the company's debt levels and its ability to service its debt obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.32 | 8.93 | 9.08 | 8.89 | 7.25 | 5.82 | 6.76 | 6.99 | 9.29 | 10.09 | 7.64 | 2.96 | 2.73 | 2.86 | 0.45 | 5.93 | 6.21 | 5.25 | 9.26 | 8.80 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Gilead Sciences, Inc. has maintained a consistently strong interest coverage ratio over the past eight quarters, ranging from 9.33 to 11.74. This indicates that the company generates sufficient earnings before interest and taxes (EBIT) to cover its interest expenses comfortably.
The trend shows a relatively stable and healthy financial position, with each quarter showing a ratio well above 1, indicating that Gilead Sciences has ample earnings to cover its interest obligations. This stability suggests that the company has a solid ability to service its debt and is effectively managing its financial leverage.
Overall, the consistent and high interest coverage ratios reflect Gilead Sciences, Inc.'s strong financial health and ability to meet its interest payment obligations, which is a positive signal for investors and creditors.