Financial statement analysis and common stock valuation

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Eli Lilly & Co..

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Eli Lilly & Co. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Revenues

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Eli Lilly & Co., the result of its operating activities.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Analysis of Liquidity Ratios

Measures the adequacy of Eli Lilly & Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Eli Lilly & Co. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Eli Lilly & Co. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Eli Lilly & Co. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Enterprise Value to EBITDA (EV/EBITDA)

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.