Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Eli Lilly & Co., balance sheet: inventory

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Finished products	791,700)	901,200)	761,900)	758,900)	647,300)
Work in process	3,248,600)	2,597,700)	2,372,700)	2,535,400)	2,067,600)
Raw materials and supplies	1,630,100)	801,900)	717,200)	651,200)	424,600)
Inventories, approximates replacement cost	5,670,400)	4,300,800)	3,851,800)	3,945,500)	3,139,500)
Increase (reduction) to LIFO cost	102,400)	8,900)	34,200)	34,800)	51,200)
Inventories	5,772,800)	4,309,700)	3,886,000)	3,980,300)	3,190,700)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Eli Lilly & Co. inventories increased from 2021 to 2022 and from 2022 to 2023.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Inventories
Inventories at LIFO (as reported)	5,772,800)	4,309,700)	3,886,000)	3,980,300)	3,190,700)
Add: Inventory LIFO reserve	(102,400)	(8,900)	(34,200)	(34,800)	(51,200)
Inventories at FIFO (adjusted)	5,670,400)	4,300,800)	3,851,800)	3,945,500)	3,139,500)
Adjustment to Current Assets
Current assets (as reported)	25,727,000)	18,034,500)	18,452,400)	17,462,100)	13,709,600)
Add: Inventory LIFO reserve	(102,400)	(8,900)	(34,200)	(34,800)	(51,200)
Current assets (adjusted)	25,624,600)	18,025,600)	18,418,200)	17,427,300)	13,658,400)
Adjustment to Total Assets
Total assets (as reported)	64,006,300)	49,489,800)	48,806,000)	46,633,100)	39,286,100)
Add: Inventory LIFO reserve	(102,400)	(8,900)	(34,200)	(34,800)	(51,200)
Total assets (adjusted)	63,903,900)	49,480,900)	48,771,800)	46,598,300)	39,234,900)
Adjustment to Total Eli Lilly And Company Shareholders’ Equity
Total Eli Lilly and Company shareholders’ equity (as reported)	10,771,900)	10,649,800)	8,979,200)	5,641,600)	2,606,900)
Add: Inventory LIFO reserve	(102,400)	(8,900)	(34,200)	(34,800)	(51,200)
Total Eli Lilly and Company shareholders’ equity (adjusted)	10,669,500)	10,640,900)	8,945,000)	5,606,800)	2,555,700)
Adjustment to Net Income
Net income (as reported)	5,240,400)	6,244,800)	5,581,700)	6,193,700)	8,318,400)
Add: Increase (decrease) in inventory LIFO reserve	(93,500)	25,300)	600)	16,400)	(14,800)
Net income (adjusted)	5,146,900)	6,270,100)	5,582,300)	6,210,100)	8,303,600)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Eli Lilly & Co. inventory value on Dec 31, 2023 would be $5,670,400) (in thousands) if the FIFO inventory method was used instead of LIFO. Eli Lilly & Co. inventories, valued on a LIFO basis, on Dec 31, 2023 were $5,772,800). Eli Lilly & Co. inventories would have been $(102,400) higher than reported on Dec 31, 2023 if the FIFO method had been used instead.

Eli Lilly & Co., Financial Data: Reported vs. Adjusted

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Eli Lilly & Co., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current Ratio
Reported current ratio (LIFO)	0.94	1.05	1.23	1.40	1.16
Adjusted current ratio (FIFO)	0.94	1.05	1.22	1.40	1.16
Net Profit Margin
Reported net profit margin (LIFO)	15.36%	21.88%	19.71%	25.24%	37.27%
Adjusted net profit margin (FIFO)	15.08%	21.97%	19.71%	25.31%	37.20%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.53	0.58	0.58	0.53	0.57
Adjusted total asset turnover (FIFO)	0.53	0.58	0.58	0.53	0.57
Financial Leverage
Reported financial leverage (LIFO)	5.94	4.65	5.44	8.27	15.07
Adjusted financial leverage (FIFO)	5.99	4.65	5.45	8.31	15.35
Return on Equity (ROE)
Reported ROE (LIFO)	48.65%	58.64%	62.16%	109.79%	319.09%
Adjusted ROE (FIFO)	48.24%	58.92%	62.41%	110.76%	324.91%
Return on Assets (ROA)
Reported ROA (LIFO)	8.19%	12.62%	11.44%	13.28%	21.17%
Adjusted ROA (FIFO)	8.05%	12.67%	11.45%	13.33%	21.16%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Eli Lilly & Co. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Eli Lilly & Co. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Eli Lilly & Co. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Eli Lilly & Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Eli Lilly & Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Eli Lilly & Co. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Eli Lilly & Co., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Current assets	25,727,000)	18,034,500)	18,452,400)	17,462,100)	13,709,600)
Current liabilities	27,293,200)	17,138,200)	15,052,700)	12,481,600)	11,775,200)
Liquidity Ratio
Current ratio¹	0.94	1.05	1.23	1.40	1.16
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	25,624,600)	18,025,600)	18,418,200)	17,427,300)	13,658,400)
Current liabilities	27,293,200)	17,138,200)	15,052,700)	12,481,600)	11,775,200)
Liquidity Ratio
Adjusted current ratio²	0.94	1.05	1.22	1.40	1.16

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 25,727,000 ÷ 27,293,200 = 0.94

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 25,624,600 ÷ 27,293,200 = 0.94

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Eli Lilly & Co. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	5,240,400)	6,244,800)	5,581,700)	6,193,700)	8,318,400)
Revenue	34,124,100)	28,541,400)	28,318,400)	24,539,800)	22,319,500)
Profitability Ratio
Net profit margin¹	15.36%	21.88%	19.71%	25.24%	37.27%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	5,146,900)	6,270,100)	5,582,300)	6,210,100)	8,303,600)
Revenue	34,124,100)	28,541,400)	28,318,400)	24,539,800)	22,319,500)
Profitability Ratio
Adjusted net profit margin²	15.08%	21.97%	19.71%	25.31%	37.20%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 5,240,400 ÷ 34,124,100 = 15.36%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 5,146,900 ÷ 34,124,100 = 15.08%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Eli Lilly & Co. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue	34,124,100)	28,541,400)	28,318,400)	24,539,800)	22,319,500)
Total assets	64,006,300)	49,489,800)	48,806,000)	46,633,100)	39,286,100)
Activity Ratio
Total asset turnover¹	0.53	0.58	0.58	0.53	0.57
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Revenue	34,124,100)	28,541,400)	28,318,400)	24,539,800)	22,319,500)
Adjusted total assets	63,903,900)	49,480,900)	48,771,800)	46,598,300)	39,234,900)
Activity Ratio
Adjusted total asset turnover²	0.53	0.58	0.58	0.53	0.57

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 34,124,100 ÷ 64,006,300 = 0.53

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 34,124,100 ÷ 63,903,900 = 0.53

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Eli Lilly & Co. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	64,006,300)	49,489,800)	48,806,000)	46,633,100)	39,286,100)
Total Eli Lilly and Company shareholders’ equity	10,771,900)	10,649,800)	8,979,200)	5,641,600)	2,606,900)
Solvency Ratio
Financial leverage¹	5.94	4.65	5.44	8.27	15.07
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	63,903,900)	49,480,900)	48,771,800)	46,598,300)	39,234,900)
Adjusted total Eli Lilly and Company shareholders’ equity	10,669,500)	10,640,900)	8,945,000)	5,606,800)	2,555,700)
Solvency Ratio
Adjusted financial leverage²	5.99	4.65	5.45	8.31	15.35

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Eli Lilly and Company shareholders’ equity
= 64,006,300 ÷ 10,771,900 = 5.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Eli Lilly and Company shareholders’ equity
= 63,903,900 ÷ 10,669,500 = 5.99

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Eli Lilly & Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	5,240,400)	6,244,800)	5,581,700)	6,193,700)	8,318,400)
Total Eli Lilly and Company shareholders’ equity	10,771,900)	10,649,800)	8,979,200)	5,641,600)	2,606,900)
Profitability Ratio
ROE¹	48.65%	58.64%	62.16%	109.79%	319.09%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	5,146,900)	6,270,100)	5,582,300)	6,210,100)	8,303,600)
Adjusted total Eli Lilly and Company shareholders’ equity	10,669,500)	10,640,900)	8,945,000)	5,606,800)	2,555,700)
Profitability Ratio
Adjusted ROE²	48.24%	58.92%	62.41%	110.76%	324.91%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × 5,240,400 ÷ 10,771,900 = 48.65%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total Eli Lilly and Company shareholders’ equity
= 100 × 5,146,900 ÷ 10,669,500 = 48.24%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Eli Lilly & Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	5,240,400)	6,244,800)	5,581,700)	6,193,700)	8,318,400)
Total assets	64,006,300)	49,489,800)	48,806,000)	46,633,100)	39,286,100)
Profitability Ratio
ROA¹	8.19%	12.62%	11.44%	13.28%	21.17%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	5,146,900)	6,270,100)	5,582,300)	6,210,100)	8,303,600)
Adjusted total assets	63,903,900)	49,480,900)	48,771,800)	46,598,300)	39,234,900)
Profitability Ratio
Adjusted ROA²	8.05%	12.67%	11.45%	13.33%	21.16%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 5,240,400 ÷ 64,006,300 = 8.19%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,146,900 ÷ 63,903,900 = 8.05%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Eli Lilly & Co. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Eli Lilly & Co. (NYSE:LLY)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Eli Lilly & Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Eli Lilly & Co., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)