stephanie kessinger jerry...
TRANSCRIPT
Stephanie Kessinger
&
Jerry Moon
1
Agenda Company Overview
Operational Overview
Financial Overview
Conclusion
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Company Overview Type of business: Pharmaceutical company
History: Founded in June 1987
Products: Medications to treat HIV/AIDS, Liver Diseases, Oncology, Cardiovascular, and Respiratory Issues
Company Structure: for-profit
Location: Headquarters - Foster City, California
Operations worldwide
Size: 6,000 staff members
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Company Overview Mission: to discover, develop and commercialize
therapeutics that advance patient care, while challenging employees to make a difference and building a thriving worldwide enterprise
Vision: To discover, develop and commercialize innovative therapeutics in the areas of unmet medical need that improve patient care
Core Values: Integrity, Teamwork, accountability, and excellence
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Operational Overview
Pharmaceutical Company
Focus on Anti-viral Medications
Current Competitors
Pfizer and Merck
Often Collaborate with Competition
Major issues of two must recent annual reports
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Financial Strengths
Financial Status: Good- Excellent
Net Income: $2-3 Billion, steady increase
Revenue: $11.2 Billion, steady increase
Stockholders Equity: $11.3 Billion, steady increase
2nd QTR FY14 $4.19 Billion in operating cash flows
2014 Income Statement projected to exceed 2013
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Financial Weaknesses Limited
Debt
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Ratio Analysis & Trends Profitability
Liquidity
Debt
Asset Management & Efficiency
Compare to Merck & Pfizer
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Profitability
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2013 Gilead Pfizer Merck
ROE 27% 28.8% 8.8%
ROA 13.67% 12.78% 4.17%
Total Margin 27.5% 42.7% 10%
Gilead Profitability Trends
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3
ROE
ROA
Total Margin
2011 2012 2013
Liquidity Ratios
2013 Gilead Pfizer Merck Industry
Current Ratio 2.03 2.41 2.00 1.72
Debt to Capitalization ratio
25.7% 31% 29%
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$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
2011 2012 2013
operatingcash flow
free cash flow
Quick Ratio Trends
0
1
2
3
4
5
6
2011 2012 2013
Gilead
Merck
Pfizer
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Debt Management Ratio Gilead Pfizer Merck
Debt to Equity 0.58 0.48 0.50
Debt Ratio 49% 52% 55%
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$0.00
$2,000.00
$4,000.00
$6,000.00
$8,000.00
2011 2012 2013
currentliabilities
longtermliabilities
Decrease Total Liabilities 7.2% • Increase in current liabilities • Decrease in long term debt
Gilead Debt Management Trends
0
0.2
0.4
0.6
0.8
1
1.2
2011 2012 2013
Debt/Equity
Debt ratio
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Industry Asset Turnover Ratio
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2011 2012 2013
Gilead
Merck
Pfizer
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R&D Spending
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$8,000.00
$9,000.00
$10,000.00
2011 2012 2013
Gilead
Merck
Pfizer
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Recommendations Expand Research and Development
Pay off debt (long term and current liabilities)
Acquisition Targets
Partnerships
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Gilead Pfizer Merck
Revenues $11 Billion $51.6 Billion
$44 Billion
R&D Spending
$2.11 Billion $6.67 Billion $7.5 Billion
European payment delays
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$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
120 days 365 days
Spain
Portugal
Italy
Greece
Total
Ability to pay debt
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References http://finance.yahoo.com/q?s=GILD
http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-reportsAnnual
Gilead’s annual report and 10K
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