GURUFOCUS.COM » STOCK LIST » USA » NAS » Gilead Sciences Inc (NAS:GILD) » Definitions » Financial Strength
Switch to:

Gilead Sciences Financial Strength

: 5 (As of Jun. 2022)
View and export this data going back to 1992. Start your Free Trial

Gilead Sciences has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Gilead Sciences's Interest Coverage for the quarter that ended in Jun. 2022 was 9.75. Gilead Sciences's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.05. As of today, Gilead Sciences's Altman Z-Score is 2.34.


Competitive Comparison

For the Drug Manufacturers - General subindustry, Gilead Sciences's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Gilead Sciences Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, Gilead Sciences's Financial Strength distribution charts can be found below:

* The bar in red indicates where Gilead Sciences's Financial Strength falls into.



Gilead Sciences Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Gilead Sciences's Interest Expense for the months ended in Jun. 2022 was $-242 Mil. Its Operating Income for the months ended in Jun. 2022 was $2,359 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $25,195 Mil.

Gilead Sciences's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2359/-242
=9.75

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Gilead Sciences's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1021 + 25195) / 25040
=1.05

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Gilead Sciences has a Z-score of 2.34, indicating it is in Grey Zones. This implies that Gilead Sciences is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.34 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Gilead Sciences  (NAS:GILD) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Gilead Sciences has the Financial Strength Rank of 5.


Gilead Sciences Financial Strength Related Terms

Thank you for viewing the detailed overview of Gilead Sciences's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Gilead Sciences Business Description

Gilead Sciences logo
Address
333 Lakeside Drive, Foster, CA, USA, 94404
Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. The acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have broadened this focus to include pulmonary and cardiovascular diseases and cancer. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of combination drug Harvoni, and the Kite, Forty Seven, and Immunomedics acquisitions boost Gilead's exposure to cell therapy and noncell therapy in oncology.
Executives
Bluestone Jeffrey director C/O PROVENTION BIO, INC. P.O. BOX 666 OLDWICK NJ 08858
Welters Anthony director
Rodriguez Javier director 601 HAWAII ST. EL SEGUNDO CA 90245
Wilfong Diane E. officer: SVP, Controller & CAO 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Horning Sandra director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Parsey Merdad officer: Chief Medical Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Dickinson Andrew D officer: EVP, Chief Financial Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Mercier Johanna officer: Chief Commercial Officer 333 LAKESIDE DRIVE FOSTER CITY CA 94404
O'day Daniel Patrick director, officer: Chairman & CEO 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Hamill Laura officer: EVP, Worldwide Commercial Ops 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Manwani Harish director UNILEVER ASIA PRIVATE LTD 20 PASIR PANJANG,0622 MAPLETREE BUS CTY SINGAPORE U0 117439
Pletcher Brett A officer: EVP, Gen Counsel & Corp Sec 333 LAKESIDE DRIVE FOSTER CITY X1 94404
Mchutchison John G officer: Chief Scientific Off/HeadR&D 333 LAKESIDE DRIVE FOSTER CITY X1 94404
Barton Jacqueline K director 1200 EAST CALIFORNIA BLVD PASADENA CA 91125-0072
Meyers James R officer: EVP Worldwide Commercial Ops GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404

Gilead Sciences Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)