Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Gilead Sciences Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 1,495 1,781 2,539 1,776 1,450
State 39 80 32 228 198
Foreign 519 381 232 185 155
Current 2,053 2,242 2,803 2,189 1,803
Federal (1,562) (1,126) (1,502) (250) (164)
State (386) 170 (154) 185 (97)
Foreign 106 (39) 101 (47) 38
Deferred (1,842) (995) (1,555) (112) (223)
Income tax expense 211 1,247 1,248 2,077 1,580

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Gilead Sciences Inc. current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Gilead Sciences Inc. deferred increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Gilead Sciences Inc. income tax expense decreased from 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

Gilead Sciences Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State taxes, net of federal benefit -43.60% 2.30% -2.00% 2.50% 4.20%
Foreign earnings at different rates 10.90% -0.20% -0.60% -0.30% -10.00%
Research and other credits -31.60% -4.30% -2.70% -1.60% -6.90%
US tax on foreign earnings 12.10% 1.00% 2.70% 1.10% 7.20%
Foreign-derived intangible income deduction -19.30% -2.10% -3.80% -1.60% -8.00%
Tax examinations -33.70% -4.70% -0.20% -0.70% -10.20%
Acquired IPR&D & related charges 117.30% 1.30% 1.40% 0.00% 56.20%
Changes in valuation allowance 15.60% 0.90% 1.20% 1.50% 6.70%
Non-taxable unrealized loss on investment 6.80% 0.20% 0.70% 1.80% 23.00%
Legal entity restructuring -52.60% 0.00% 0.00% 0.00% 0.00%
Other 27.60% 2.80% 3.80% 1.40% 11.50%
Effective tax rate 30.50% 18.20% 21.50% 25.10% 94.70%

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
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Gilead Sciences Inc. effective tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Components of Deferred Tax Assets and Liabilities

Gilead Sciences Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating loss carryforwards 288 417 430 413 587
Stock-based compensation 84 94 95 117 113
Reserves and accruals not currently deductible 685 644 645 700 444
Excess of tax basis over book basis of intangible assets 910 1,041 1,067 1,157 1,177
Upfront and milestone payments 1,312 1,271 1,298 1,310 1,144
Research and other credit carryforwards 428 283 233 249 219
Equity investments 237 221 196 117 116
Liability related to future royalties 287 296 278 274 247
Capitalized R&D expenditures 2,173 1,623 784
Capital losses 590 17
Other, net 213 303 263 292 311
Deferred tax assets before valuation allowance 7,207 6,210 5,289 4,629 4,358
Valuation allowance (1,217) (663) (599) (520) (398)
Deferred tax assets 5,990 5,547 4,690 4,109 3,960
Property, plant and equipment (276) (274) (234) (227) (202)
Excess of book basis over tax basis of intangible assets (3,836) (5,481) (5,728) (6,719) (6,168)
Other (224) (184) (160) (180) (202)
Deferred tax liabilities (4,336) (5,939) (6,122) (7,126) (6,572)
Net deferred tax assets (liabilities) 1,654 (392) (1,432) (3,017) (2,612)

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
Deferred tax assets before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Gilead Sciences Inc. deferred tax assets before valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Gilead Sciences Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Gilead Sciences Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Gilead Sciences Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax asset 2,378 1,196 1,241 1,339 1,302
Deferred tax liability 724 1,588 2,673 4,356 3,914

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
Deferred tax asset Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Gilead Sciences Inc. deferred tax asset decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred tax liability Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Gilead Sciences Inc. deferred tax liability decreased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 2,378 1,196 1,241 1,339 1,302
Total assets (adjusted) 56,617 60,929 61,930 66,613 67,105
Adjustment to Total Liabilities
Total liabilities (as reported) 39,749 39,376 41,962 46,888 50,186
Less: Noncurrent deferred tax liabilities, net 724 1,588 2,673 4,356 3,914
Total liabilities (adjusted) 39,025 37,788 39,289 42,532 46,272
Adjustment to Total Gilead Stockholders’ Equity
Total Gilead stockholders’ equity (as reported) 19,330 22,833 21,240 21,069 18,202
Less: Net deferred tax assets (liabilities) 1,654 (392) (1,432) (3,017) (2,612)
Total Gilead stockholders’ equity (adjusted) 17,676 23,225 22,672 24,086 20,814
Adjustment to Net Income Attributable To Gilead
Net income attributable to Gilead (as reported) 480 5,665 4,592 6,225 123
Add: Deferred income tax expense (benefit) (1,842) (995) (1,555) (112) (223)
Net income attributable to Gilead (adjusted) (1,362) 4,670 3,037 6,113 (100)

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 Deferred Taxes (Summary)

Gilead Sciences Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 1.68% 21.03% 17.02% 23.05% 0.51%
Adjusted net profit margin -4.76% 17.34% 11.26% 22.63% -0.41%
Total Asset Turnover
Reported total asset turnover 0.48 0.43 0.43 0.40 0.36
Adjusted total asset turnover 0.51 0.44 0.44 0.41 0.36
Financial Leverage
Reported financial leverage 3.05 2.72 2.97 3.23 3.76
Adjusted financial leverage 3.20 2.62 2.73 2.77 3.22
Return on Equity (ROE)
Reported ROE 2.48% 24.81% 21.62% 29.55% 0.68%
Adjusted ROE -7.71% 20.11% 13.40% 25.38% -0.48%
Return on Assets (ROA)
Reported ROA 0.81% 9.12% 7.27% 9.16% 0.18%
Adjusted ROA -2.41% 7.66% 4.90% 9.18% -0.15%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Gilead Sciences Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
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 adjusted 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 adjusted 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 Net Profit Margin

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
Product sales 28,610 26,934 26,982 27,008 24,355
Profitability Ratio
Net profit margin1 1.68% 21.03% 17.02% 23.05% 0.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead (1,362) 4,670 3,037 6,113 (100)
Product sales 28,610 26,934 26,982 27,008 24,355
Profitability Ratio
Adjusted net profit margin2 -4.76% 17.34% 11.26% 22.63% -0.41%

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 Net profit margin = 100 × Net income attributable to Gilead ÷ Product sales
= 100 × 480 ÷ 28,610 = 1.68%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Gilead ÷ Product sales
= 100 × -1,362 ÷ 28,610 = -4.76%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Gilead Sciences Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Product sales 28,610 26,934 26,982 27,008 24,355
Adjusted total assets 56,617 60,929 61,930 66,613 67,105
Activity Ratio
Adjusted total asset turnover2 0.51 0.44 0.44 0.41 0.36

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 ÷ 56,617 = 0.51

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 56,617 60,929 61,930 66,613 67,105
Adjusted total Gilead stockholders’ equity 17,676 23,225 22,672 24,086 20,814
Solvency Ratio
Adjusted financial leverage2 3.20 2.62 2.73 2.77 3.22

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 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
= 56,617 ÷ 17,676 = 3.20

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead (1,362) 4,670 3,037 6,113 (100)
Adjusted total Gilead stockholders’ equity 17,676 23,225 22,672 24,086 20,814
Profitability Ratio
Adjusted ROE2 -7.71% 20.11% 13.40% 25.38% -0.48%

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 × Adjusted net income attributable to Gilead ÷ Adjusted total Gilead stockholders’ equity
= 100 × -1,362 ÷ 17,676 = -7.71%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Gilead (1,362) 4,670 3,037 6,113 (100)
Adjusted total assets 56,617 60,929 61,930 66,613 67,105
Profitability Ratio
Adjusted ROA2 -2.41% 7.66% 4.90% 9.18% -0.15%

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 × Adjusted net income attributable to Gilead ÷ Adjusted total assets
= 100 × -1,362 ÷ 56,617 = -2.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.