Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Gilead Sciences Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Goodwill	8,314)	8,314)	8,314)	8,332)	8,108)
Sofosbuvir	10,720)	10,720)	10,720)	10,720)	10,720)
Axicabtagene ciloleucel	7,110)	7,110)	7,110)	7,110)	6,200)
Trodelvy	11,730)	11,730)	5,630)	5,630)	4,600)
Hepcludex	845)	845)	845)	845)	—)
Other	1,475)	1,415)	1,490)	1,611)	1,376)
Finite-lived assets, gross carrying amount	31,880)	31,820)	25,795)	25,916)	22,896)
Accumulated amortization	(14,822)	(12,436)	(10,121)	(8,381)	(6,660)
Finite-lived assets, net carrying amount	17,058)	19,384)	15,674)	17,535)	16,236)
IPR&D	2,890)	7,070)	13,220)	15,920)	16,890)
Indefinite-lived assets	2,890)	7,070)	13,220)	15,920)	16,890)
Intangible assets	19,948)	26,454)	28,894)	33,455)	33,126)
Goodwill and intangible assets	28,262)	34,768)	37,208)	41,787)	41,234)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Gilead Sciences Inc. intangible assets decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Gilead Sciences Inc. goodwill and intangible assets decreased from 2022 to 2023 and from 2023 to 2024.

Gilead Sciences Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	58,995)	62,125)	63,171)	67,952)	68,407)
Less: Goodwill	8,314)	8,314)	8,314)	8,332)	8,108)
Total assets (adjusted)	50,681)	53,811)	54,857)	59,620)	60,299)
Adjustment to Total Gilead Stockholders’ Equity
Total Gilead stockholders’ equity (as reported)	19,330)	22,833)	21,240)	21,069)	18,202)
Less: Goodwill	8,314)	8,314)	8,314)	8,332)	8,108)
Total Gilead stockholders’ equity (adjusted)	11,016)	14,519)	12,926)	12,737)	10,094)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Gilead Sciences Inc., Financial Data: Reported vs. Adjusted

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Gilead Sciences Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total Asset Turnover
Reported total asset turnover	0.48	0.43	0.43	0.40	0.36
Adjusted total asset turnover	0.56	0.50	0.49	0.45	0.40
Financial Leverage
Reported financial leverage	3.05	2.72	2.97	3.23	3.76
Adjusted financial leverage	4.60	3.71	4.24	4.68	5.97
Return on Equity (ROE)
Reported ROE	2.48%	24.81%	21.62%	29.55%	0.68%
Adjusted ROE	4.36%	39.02%	35.53%	48.87%	1.22%
Return on Assets (ROA)
Reported ROA	0.81%	9.12%	7.27%	9.16%	0.18%
Adjusted ROA	0.95%	10.53%	8.37%	10.44%	0.20%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Gilead Sciences Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Gilead Sciences Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Gilead Sciences Inc. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Gilead Sciences Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Product sales	28,610)	26,934)	26,982)	27,008)	24,355)
Total assets	58,995)	62,125)	63,171)	67,952)	68,407)
Activity Ratio
Total asset turnover¹	0.48	0.43	0.43	0.40	0.36
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Product sales	28,610)	26,934)	26,982)	27,008)	24,355)
Adjusted total assets	50,681)	53,811)	54,857)	59,620)	60,299)
Activity Ratio
Adjusted total asset turnover²	0.56	0.50	0.49	0.45	0.40

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Product sales ÷ Total assets
= 28,610 ÷ 58,995 = 0.48

² Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 28,610 ÷ 50,681 = 0.56

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Gilead Sciences Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	58,995)	62,125)	63,171)	67,952)	68,407)
Total Gilead stockholders’ equity	19,330)	22,833)	21,240)	21,069)	18,202)
Solvency Ratio
Financial leverage¹	3.05	2.72	2.97	3.23	3.76
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	50,681)	53,811)	54,857)	59,620)	60,299)
Adjusted total Gilead stockholders’ equity	11,016)	14,519)	12,926)	12,737)	10,094)
Solvency Ratio
Adjusted financial leverage²	4.60	3.71	4.24	4.68	5.97

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 58,995 ÷ 19,330 = 3.05

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Gilead stockholders’ equity
= 50,681 ÷ 11,016 = 4.60

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Gilead Sciences Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	480)	5,665)	4,592)	6,225)	123)
Total Gilead stockholders’ equity	19,330)	22,833)	21,240)	21,069)	18,202)
Profitability Ratio
ROE¹	2.48%	24.81%	21.62%	29.55%	0.68%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	480)	5,665)	4,592)	6,225)	123)
Adjusted total Gilead stockholders’ equity	11,016)	14,519)	12,926)	12,737)	10,094)
Profitability Ratio
Adjusted ROE²	4.36%	39.02%	35.53%	48.87%	1.22%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income attributable to Gilead ÷ Total Gilead stockholders’ equity
= 100 × 480 ÷ 19,330 = 2.48%

² Adjusted ROE = 100 × Net income attributable to Gilead ÷ Adjusted total Gilead stockholders’ equity
= 100 × 480 ÷ 11,016 = 4.36%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Gilead Sciences Inc. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	480)	5,665)	4,592)	6,225)	123)
Total assets	58,995)	62,125)	63,171)	67,952)	68,407)
Profitability Ratio
ROA¹	0.81%	9.12%	7.27%	9.16%	0.18%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Gilead	480)	5,665)	4,592)	6,225)	123)
Adjusted total assets	50,681)	53,811)	54,857)	59,620)	60,299)
Profitability Ratio
Adjusted ROA²	0.95%	10.53%	8.37%	10.44%	0.20%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × 480 ÷ 58,995 = 0.81%

² Adjusted ROA = 100 × Net income attributable to Gilead ÷ Adjusted total assets
= 100 × 480 ÷ 50,681 = 0.95%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Gilead Sciences Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Gilead Sciences Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Gilead Sciences Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)