Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Gilead Sciences Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 62,125 63,171 67,952 68,407 61,627
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 62,125 63,171 67,952 68,407 61,627
Adjustment to Total Debt
Total debt (as reported) 24,987 25,230 26,695 31,402 24,593
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Operating lease liabilities, current (classified as Other accrued liabilities) 125 111 101 107 99
Add: Operating lease liabilities, noncurrent (classified as Other long-term obligations) 546 467 489 608 626
Total debt (adjusted) 25,658 25,808 27,285 32,117 25,318

Based on: 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), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Gilead Sciences Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.43 0.43 0.40 0.36 0.36
Adjusted total asset turnover 0.43 0.43 0.40 0.36 0.36
Debt to Equity2
Reported debt to equity 1.09 1.19 1.27 1.73 1.09
Adjusted debt to equity 1.12 1.22 1.30 1.76 1.12
Return on Assets3 (ROA)
Reported ROA 9.12% 7.27% 9.16% 0.18% 8.74%
Adjusted ROA 9.12% 7.27% 9.16% 0.18% 8.74%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Gilead Sciences Inc. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Gilead Sciences Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Product sales 26,934 26,982 27,008 24,355 22,119
Total assets 62,125 63,171 67,952 68,407 61,627
Activity Ratio
Total asset turnover1 0.43 0.43 0.40 0.36 0.36
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Product sales 26,934 26,982 27,008 24,355 22,119
Adjusted total assets 62,125 63,171 67,952 68,407 61,627
Activity Ratio
Adjusted total asset turnover2 0.43 0.43 0.40 0.36 0.36

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Product sales ÷ Total assets
= 26,934 ÷ 62,125 = 0.43

2 Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 26,934 ÷ 62,125 = 0.43

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 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 24,987 25,230 26,695 31,402 24,593
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Solvency Ratio
Debt to equity1 1.09 1.19 1.27 1.73 1.09
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 25,658 25,808 27,285 32,117 25,318
Total Gilead stockholders’ equity 22,833 21,240 21,069 18,202 22,525
Solvency Ratio
Adjusted debt to equity2 1.12 1.22 1.30 1.76 1.12

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= 24,987 ÷ 22,833 = 1.09

2 Adjusted debt to equity = Adjusted total debt ÷ Total Gilead stockholders’ equity
= 25,658 ÷ 22,833 = 1.12

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Gilead Sciences Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Total assets 62,125 63,171 67,952 68,407 61,627
Profitability Ratio
ROA1 9.12% 7.27% 9.16% 0.18% 8.74%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 5,665 4,592 6,225 123 5,386
Adjusted total assets 62,125 63,171 67,952 68,407 61,627
Profitability Ratio
Adjusted ROA2 9.12% 7.27% 9.16% 0.18% 8.74%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to Gilead ÷ Total assets
= 100 × 5,665 ÷ 62,125 = 9.12%

2 Adjusted ROA = 100 × Net income attributable to Gilead ÷ Adjusted total assets
= 100 × 5,665 ÷ 62,125 = 9.12%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Gilead Sciences Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.