Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

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

US$ in millions

Microsoft Excel
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).

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.

Adjustments to Financial Statements: Removal of Goodwill

Gilead Sciences Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
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


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Gilead Sciences Inc., adjusted financial ratios

Microsoft Excel
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


Adjusted Total Asset Turnover

Microsoft Excel
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

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.

Adjusted Financial Leverage

Microsoft Excel
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

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.

Adjusted Return on Equity (ROE)

Microsoft Excel
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%

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.

Adjusted Return on Assets (ROA)

Microsoft Excel
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%

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.