Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', GILD's fixed asset turnover was 5.33, illustrating how efficiently fixed assets are generating revenue. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2021' stood at 1.02.
• In '2022', GILD's fixed asset turnover was 5.15, illustrating how efficiently fixed assets are generating revenue. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2022' stood at 0.97. Industry average declined by 0.05 from previous year.
• In '2023', GILD's fixed asset turnover was 5.03, illustrating how efficiently fixed assets are generating revenue. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2023' stood at 0.99. Industry average increased by 0.01 compared to previous year.
• In '2024', GILD's fixed asset turnover was 5.36, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2024' stood at 1.05. Industry average increased by 0.07 compared to previous year.
Overall, GILD's fixed asset turnover has steadily improved over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.