Gilead Sciences Inc (GILD)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.05 | 2.95 | 2.93 | 3.21 | 2.73 | 2.80 | 2.96 | 2.96 | 2.98 | 2.97 | 3.11 | 3.17 | 3.23 | 3.13 | 3.45 | 3.56 | 3.75 | 3.48 | 3.08 | 2.69 |
Based on the provided data, Gilead Sciences Inc has consistently maintained a strong financial position in terms of solvency ratios.
1. Debt-to-assets ratio: The company has a debt-to-assets ratio of 0.00 across all reported periods. This indicates that Gilead Sciences Inc has not relied on debt to finance its assets, which is a positive sign of financial stability.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 throughout the reported periods. This suggests that the company has not heavily leveraged its capital structure with debt, further demonstrating its strong financial health.
3. Debt-to-equity ratio: Gilead Sciences Inc has consistently maintained a debt-to-equity ratio of 0.00 over the reported periods. This implies that the company has not taken on significant debt in relation to its equity, indicating a low level of financial risk.
4. Financial leverage ratio: The financial leverage ratio, which indicates the company's level of financial leverage, shows some fluctuations but overall remains within a moderate range. The ratio has varied between 2.69 and 3.75 over the periods, with the most recent figure at 3.05 as of December 31, 2024. While there are fluctuations, the company's financial leverage has generally remained at manageable levels.
Overall, the solvency ratios suggest that Gilead Sciences Inc has a stable financial position with low debt levels and moderate financial leverage, indicating a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.71 | 1.18 | 2.58 | 2.11 | 8.27 | 8.87 | 9.02 | 8.83 | 7.21 | 5.80 | 6.73 | 6.97 | 9.27 | 10.06 | 7.61 | 2.93 | 2.70 | 2.83 | 0.42 | 5.90 |
Based on the data provided, Gilead Sciences Inc's interest coverage ratio has fluctuated over the specified periods. The interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In March 2020, the interest coverage ratio was 5.90, indicating that Gilead had sufficient earnings to cover its interest expenses almost six times. However, by June 2020, the ratio dropped significantly to 0.42, suggesting a potential strain on the company's ability to cover its interest payments from its earnings.
Over the subsequent quarters, Gilead's interest coverage ratio showed some improvement, reaching a peak of 10.06 in September 2021. This indicated a strong capacity to pay interest obligations with its earnings. However, the ratio decreased to 1.18 by September 2024, reflecting a significant decline in the company's ability to cover interest expenses.
It is important for investors and creditors to closely monitor Gilead's interest coverage ratio to assess the company's financial health and ability to service its debt obligations. The fluctuations in the interest coverage ratio highlight the importance of considering both short-term and long-term trends in determining the company's financial stability.