Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Gilead Sciences Inc., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity 1.38 1.09 1.19 1.27 1.73
Debt to equity (including operating lease liability) 1.41 1.12 1.22 1.30 1.76
Debt to capital 0.58 0.52 0.54 0.56 0.63
Debt to capital (including operating lease liability) 0.59 0.53 0.55 0.56 0.64
Debt to assets 0.45 0.40 0.40 0.39 0.46
Debt to assets (including operating lease liability) 0.46 0.41 0.41 0.40 0.47
Financial leverage 3.05 2.72 2.97 3.23 3.76
Coverage Ratios
Interest coverage 1.71 8.27 7.22 9.27 2.70
Fixed charge coverage 1.61 7.18 6.30 8.15 2.45

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Gilead Sciences Inc. debt to equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Gilead Sciences Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Gilead Sciences Inc. debt to capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Gilead Sciences Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Gilead Sciences Inc. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Gilead Sciences Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Gilead Sciences Inc. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Gilead Sciences Inc. interest coverage ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Gilead Sciences Inc. fixed charge coverage ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Equity

Gilead Sciences Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
 
Total Gilead stockholders’ equity 19,330 22,833 21,240 21,069 18,202
Solvency Ratio
Debt to equity1 1.38 1.09 1.19 1.27 1.73
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 20.19 5.73 3.67 4.98 6.58
Amgen Inc. 10.23 10.37 10.64 4.97 3.51
Bristol-Myers Squibb Co. 3.04 1.35 1.27 1.24 1.34
Danaher Corp. 0.32 0.34 0.39 0.49 0.53
Eli Lilly & Co. 2.37 2.34 1.52 1.88 2.94
Johnson & Johnson 0.51 0.43 0.52 0.46 0.56
Merck & Co. Inc. 0.80 0.93 0.67 0.87 1.26
Pfizer Inc. 0.73 0.81 0.37 0.50 0.63
Regeneron Pharmaceuticals Inc. 0.09 0.10 0.12 0.14 0.24
Thermo Fisher Scientific Inc. 0.63 0.75 0.78 0.85 0.63
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.06 0.07
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.04 0.97 0.80 0.93 1.12
Debt to Equity, Industry
Health Care 0.87 0.81 0.72 0.79 0.90

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= 26,711 ÷ 19,330 = 1.38

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Gilead Sciences Inc. debt to equity ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Equity (including Operating Lease Liability)

Gilead Sciences Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
Operating lease liabilities, current (classified as Other accrued liabilities) 113 125 111 101 107
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 498 546 467 489 608
Total debt (including operating lease liability) 27,322 25,658 25,808 27,285 32,117
 
Total Gilead stockholders’ equity 19,330 22,833 21,240 21,069 18,202
Solvency Ratio
Debt to equity (including operating lease liability)1 1.41 1.12 1.22 1.30 1.76
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 20.46 5.82 3.72 5.03 6.66
Amgen Inc. 10.36 10.50 10.83 5.07 3.55
Bristol-Myers Squibb Co. 3.13 1.41 1.31 1.27 1.37
Danaher Corp. 0.35 0.37 0.41 0.52 0.56
Eli Lilly & Co. 2.45 2.44 1.59 1.96 3.06
Johnson & Johnson 0.53 0.44 0.53 0.47 0.57
Merck & Co. Inc. 0.83 0.97 0.70 0.91 1.32
Pfizer Inc. 0.76 0.84 0.41 0.54 0.65
Regeneron Pharmaceuticals Inc. 0.10 0.11 0.12 0.15 0.25
Thermo Fisher Scientific Inc. 0.66 0.78 0.82 0.89 0.65
Vertex Pharmaceuticals Inc. 0.11 0.05 0.06 0.10 0.11
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.07 1.00 0.83 0.96 1.15
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.92 0.86 0.78 0.84 0.96

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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Gilead stockholders’ equity
= 27,322 ÷ 19,330 = 1.41

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Gilead Sciences Inc. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Capital

Gilead Sciences Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
Total Gilead stockholders’ equity 19,330 22,833 21,240 21,069 18,202
Total capital 46,041 47,820 46,470 47,764 49,604
Solvency Ratio
Debt to capital1 0.58 0.52 0.54 0.56 0.63
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.95 0.85 0.79 0.83 0.87
Amgen Inc. 0.91 0.91 0.91 0.83 0.78
Bristol-Myers Squibb Co. 0.75 0.57 0.56 0.55 0.57
Danaher Corp. 0.24 0.26 0.28 0.33 0.35
Eli Lilly & Co. 0.70 0.70 0.60 0.65 0.75
Johnson & Johnson 0.34 0.30 0.34 0.31 0.36
Merck & Co. Inc. 0.44 0.48 0.40 0.46 0.56
Pfizer Inc. 0.42 0.45 0.27 0.33 0.39
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.13 0.20
Thermo Fisher Scientific Inc. 0.39 0.43 0.44 0.46 0.39
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.05 0.06
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.51 0.49 0.44 0.48 0.53
Debt to Capital, Industry
Health Care 0.46 0.45 0.42 0.44 0.47

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 26,711 ÷ 46,041 = 0.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Gilead Sciences Inc. debt to capital ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Capital (including Operating Lease Liability)

Gilead Sciences Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
Operating lease liabilities, current (classified as Other accrued liabilities) 113 125 111 101 107
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 498 546 467 489 608
Total debt (including operating lease liability) 27,322 25,658 25,808 27,285 32,117
Total Gilead stockholders’ equity 19,330 22,833 21,240 21,069 18,202
Total capital (including operating lease liability) 46,652 48,491 47,048 48,354 50,319
Solvency Ratio
Debt to capital (including operating lease liability)1 0.59 0.53 0.55 0.56 0.64
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.95 0.85 0.79 0.83 0.87
Amgen Inc. 0.91 0.91 0.92 0.84 0.78
Bristol-Myers Squibb Co. 0.76 0.58 0.57 0.56 0.58
Danaher Corp. 0.26 0.27 0.29 0.34 0.36
Eli Lilly & Co. 0.71 0.71 0.61 0.66 0.75
Johnson & Johnson 0.35 0.31 0.35 0.32 0.36
Merck & Co. Inc. 0.45 0.49 0.41 0.48 0.57
Pfizer Inc. 0.43 0.46 0.29 0.35 0.39
Regeneron Pharmaceuticals Inc. 0.09 0.10 0.11 0.13 0.20
Thermo Fisher Scientific Inc. 0.40 0.44 0.45 0.47 0.40
Vertex Pharmaceuticals Inc. 0.10 0.04 0.06 0.09 0.10
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.52 0.50 0.45 0.49 0.54
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.48 0.46 0.44 0.46 0.49

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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 27,322 ÷ 46,652 = 0.59

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Gilead Sciences Inc. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Debt to Assets

Gilead Sciences Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
 
Total assets 58,995 62,125 63,171 67,952 68,407
Solvency Ratio
Debt to assets1 0.45 0.40 0.40 0.39 0.46
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.50 0.44 0.46 0.52 0.57
Amgen Inc. 0.65 0.67 0.60 0.54 0.52
Bristol-Myers Squibb Co. 0.54 0.42 0.41 0.41 0.43
Danaher Corp. 0.21 0.22 0.23 0.27 0.28
Eli Lilly & Co. 0.43 0.39 0.33 0.35 0.36
Johnson & Johnson 0.20 0.18 0.21 0.19 0.20
Merck & Co. Inc. 0.32 0.33 0.28 0.31 0.35
Pfizer Inc. 0.30 0.32 0.18 0.21 0.26
Regeneron Pharmaceuticals Inc. 0.07 0.08 0.09 0.11 0.16
Thermo Fisher Scientific Inc. 0.32 0.35 0.35 0.37 0.31
Vertex Pharmaceuticals Inc. 0.01 0.02 0.03 0.04 0.05
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.35 0.34 0.31 0.32 0.36
Debt to Assets, Industry
Health Care 0.30 0.29 0.27 0.28 0.31

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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 26,711 ÷ 58,995 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Gilead Sciences Inc. debt to assets ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

Gilead Sciences Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other obligations, net 1,815 1,798 2,273 1,516 2,757
Long-term debt, net, excluding current portion 24,896 23,189 22,957 25,179 28,645
Total debt 26,711 24,987 25,230 26,695 31,402
Operating lease liabilities, current (classified as Other accrued liabilities) 113 125 111 101 107
Operating lease liabilities, noncurrent (classified as Other long-term obligations) 498 546 467 489 608
Total debt (including operating lease liability) 27,322 25,658 25,808 27,285 32,117
 
Total assets 58,995 62,125 63,171 67,952 68,407
Solvency Ratio
Debt to assets (including operating lease liability)1 0.46 0.41 0.41 0.40 0.47
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.50 0.45 0.46 0.53 0.58
Amgen Inc. 0.66 0.67 0.61 0.56 0.53
Bristol-Myers Squibb Co. 0.55 0.44 0.42 0.42 0.44
Danaher Corp. 0.22 0.23 0.25 0.28 0.29
Eli Lilly & Co. 0.44 0.41 0.34 0.36 0.37
Johnson & Johnson 0.21 0.18 0.22 0.19 0.21
Merck & Co. Inc. 0.33 0.34 0.29 0.33 0.37
Pfizer Inc. 0.31 0.33 0.20 0.23 0.27
Regeneron Pharmaceuticals Inc. 0.08 0.08 0.09 0.11 0.16
Thermo Fisher Scientific Inc. 0.34 0.37 0.37 0.38 0.33
Vertex Pharmaceuticals Inc. 0.08 0.04 0.05 0.07 0.08
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.37 0.35 0.32 0.34 0.37
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.32 0.31 0.29 0.30 0.33

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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 27,322 ÷ 58,995 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Gilead Sciences Inc. debt to assets ratio (including operating lease liability) deteriorated from 2022 to 2023 and from 2023 to 2024.

Financial Leverage

Gilead Sciences Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 40.65 13.00 8.04 9.51 11.51
Amgen Inc. 15.63 15.59 17.79 9.13 6.69
Bristol-Myers Squibb Co. 5.67 3.23 3.12 3.04 3.13
Danaher Corp. 1.57 1.58 1.68 1.84 1.92
Eli Lilly & Co. 5.55 5.94 4.65 5.44 8.27
Johnson & Johnson 2.52 2.44 2.44 2.46 2.76
Merck & Co. Inc. 2.53 2.84 2.37 2.77 3.62
Pfizer Inc. 2.42 2.54 2.06 2.35 2.44
Regeneron Pharmaceuticals Inc. 1.29 1.27 1.29 1.36 1.56
Thermo Fisher Scientific Inc. 1.96 2.11 2.21 2.33 2.00
Vertex Pharmaceuticals Inc. 1.37 1.29 1.30 1.33 1.35
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.93 2.85 2.62 2.86 3.16
Financial Leverage, Industry
Health Care 2.86 2.79 2.67 2.77 2.94

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= 58,995 ÷ 19,330 = 3.05

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Gilead Sciences Inc. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Interest Coverage

Gilead Sciences Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 480 5,665 4,592 6,225 123
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34)
Add: Income tax expense 210 1,246 1,248 2,077 1,580
Add: Interest expense 977 944 935 1,001 984
Earnings before interest and tax (EBIT) 1,667 7,803 6,749 9,279 2,653
Solvency Ratio
Interest coverage1 1.71 8.27 7.22 9.27 2.70
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 2.32 3.81 7.04 6.36 2.38
Amgen Inc. 2.46 3.73 6.22 6.60 7.44
Bristol-Myers Squibb Co. -3.30 8.24 7.26 7.07 -3.84
Danaher Corp. 17.71 18.64 40.30 32.92 17.35
Eli Lilly & Co. 17.24 14.49 21.53 19.12 21.11
Johnson & Johnson 23.10 20.51 79.71 125.46 83.07
Merck & Co. Inc. 16.69 2.65 18.09 18.22 11.58
Pfizer Inc. 3.60 1.48 29.05 19.83 6.17
Regeneron Pharmaceuticals Inc. 87.59 58.52 82.80 163.75 67.97
Thermo Fisher Scientific Inc. 6.03 5.54 11.56 17.49 14.07
Vertex Pharmaceuticals Inc. 9.12 100.32 78.23 45.40 54.60
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.51 6.43 15.40 14.91 7.56
Interest Coverage, Industry
Health Care 5.70 7.09 12.71 12.24 7.71

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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,667 ÷ 977 = 1.71

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Gilead Sciences Inc. interest coverage ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Fixed Charge Coverage

Gilead Sciences Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income attributable to Gilead 480 5,665 4,592 6,225 123
Add: Net income attributable to noncontrolling interest (52) (26) (24) (34)
Add: Income tax expense 210 1,246 1,248 2,077 1,580
Add: Interest expense 977 944 935 1,001 984
Earnings before interest and tax (EBIT) 1,667 7,803 6,749 9,279 2,653
Add: Operating lease expense 163 165 162 156 171
Earnings before fixed charges and tax 1,830 7,968 6,911 9,435 2,824
 
Interest expense 977 944 935 1,001 984
Operating lease expense 163 165 162 156 171
Fixed charges 1,140 1,109 1,097 1,157 1,155
Solvency Ratio
Fixed charge coverage1 1.61 7.18 6.30 8.15 2.45
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 2.24 3.59 6.54 5.90 2.28
Amgen Inc. 2.37 3.55 5.52 5.67 6.48
Bristol-Myers Squibb Co. -2.75 6.69 6.30 6.01 -3.08
Danaher Corp. 9.05 9.55 13.41 10.85 7.10
Eli Lilly & Co. 13.81 10.98 15.17 13.33 15.06
Johnson & Johnson 18.47 16.50 38.72 48.16 33.93
Merck & Co. Inc. 13.31 2.27 13.69 13.08 8.47
Pfizer Inc. 3.13 1.34 18.79 14.22 4.98
Regeneron Pharmaceuticals Inc. 53.13 46.55 68.67 138.96 57.70
Thermo Fisher Scientific Inc. 5.01 4.61 8.12 12.19 10.30
Vertex Pharmaceuticals Inc. 2.85 48.66 47.97 29.62 39.35
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.80 5.40 11.85 11.49 6.11
Fixed Charge Coverage, Industry
Health Care 4.66 5.52 9.02 8.67 5.70

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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,830 ÷ 1,140 = 1.61

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Gilead Sciences Inc. fixed charge coverage ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.