GILDNEUTRAL

Current Ratio

1.97x

Updated 272h ago

Sector Performance

78th percentile

GILD

1.97x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

The current ratio of 1.97x means Gilead has $1.97 in current assets (like cash and receivables) for every $1 of short-term liabilities, indicating it can comfortably cover near-term obligations.

Among sector peers, this is well above the median of 1.21x, placing GILD in the 77th percentile. The year-over-year change is not available, but the quarter-over-quarter increase of +5.3% from 1.87x shows recent improvement in liquidity. A high current ratio combined with a rising trend suggests reduced short-term financial risk, as the company’s buffer against unexpected cash needs is growing. This liquidity strength generally lowers risk for investors but may also signal inefficient use of cash if excess assets are idle. The metric supports the overall NEUTRAL verdict because the strong current ratio and positive trend offset potential concerns about capital allocation.

Frequently Asked Questions

What does the Current Ratio tell investors about GILD?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are GILD's closest peers by Current Ratio?

The closest peers by Current Ratio include: SPG (0.41x), CHTR (0.40x), USB (0.40x), GEN (0.40x), DRI (0.39x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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GILD

1.97x

Sector Median

1.20x

Sector Avg

2.57x

How GILD's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.