Gilead Sciences, Inc. — Earnings Quality Grade F
GILD · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 61 days, change +5 days YoY
AR growth 11.2% exceeds revenue growth 2.4%
Revenue 2.4%, CFFO -7.5%. Cash follows revenue
Expense Quality
Inventory 3.7% vs COGS -0.3%. Normal
CapEx growth 7.6% vs revenue 2.4%. Normal
SG&A/Gross Profit = 24.6%, excellent (<30%)
Gross margin 78.8%, change +0.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.18. Profits backed by cash
FCF $9.5B, FCF/NI = 1.11
Accruals ratio = -2.6%. Low accruals
Cash $9.6B covers only 39% of debt $24.9B
Balance Sheet Health
Goodwill+Intangibles $25.3B = 111% of equity. Over 50%
Debt/EBITDA = 1.8x. Healthy
Other assets grew 28.5% vs revenue 2.4%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -11% YoY. Normal
Manipulation Score
M-Score = -2.45 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08