Question

Asset Turnover assistance is needed

Below is the link for the financial statements for Gilead Sciences, Inc. for the fiscal year ending 2016.

http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-sec (Links to an external site.)

First, select 2017 under the Year filter using the drop-down arrow labeled All Years and then select Annual filings under the Groupings filter using the drop-down arrow labeled All Forms. Press the large Search button to access the requested annual filing for 2016.

You should select the 10k dated 2/27/2017, and choose to download it in PDF, Word, or Excel format. The PDF format is the best format for searching.

Required Ratios for Final Project Submission

Answer 1

Asset turnover ration= net sales / average total assets

net sales can be seen in the income statement provided on-page 68 at the link. that is $29953

average total assets can be found on the consolidated balance sheet on page 65 of the pdf that was downloaded from the link ($56977+51716 divided by 2)

asset turnover ration =.5511

other major ratios: all the data is given in the financial statement downloaded from the link

1. debt to equity ratio: this can be used to judge the co. financial leverage = total liabilities / shareholder equity 37614 /19363 = 1.942

2. current ratio: this judge the co. ability to pay back its short term debt current asset/current liability 20445/9219 = 2.2177

3 quick ratio: helps in determining co. short term liquidity. formula (current assets- inventory) / current liabilities 18858 / 9219 = 2.0455

4. return on equity: this ratio can be used directly yo determine the profitability of any co net income/shareholder equity 13488/19363 =.69658

5.net profit margin: this ratio proves the efficiency of the co. on cost control net profit / net sales 13488/29953 =.4503