Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Eli Lilly & Co. (NYSE:LLY)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Eli Lilly & Co., adjustment to net income (loss)

US$ in thousands

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) (as reported) 8,318,400  3,232,000  (204,100) 2,737,600  2,408,400 
Add: Change in net unrealized gains (losses) on securities 27,000  (6,700) (126,300) 213,900  (89,600)
Net income (loss) (adjusted) 8,345,400  3,225,300  (330,400) 2,951,500  2,318,800 

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Eli Lilly & Co., adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 37.27% 13.16% -0.89% 12.90% 12.07%
Adjusted net profit margin 37.39% 13.13% -1.44% 13.91% 11.62%
Return on Equity (ROE)
Reported ROE 319.09% 32.88% -1.76% 19.54% 16.53%
Adjusted ROE 320.13% 32.82% -2.85% 21.07% 15.91%
Return on Assets (ROA)
Reported ROA 21.17% 7.36% -0.45% 7.05% 6.77%
Adjusted ROA 21.24% 7.35% -0.73% 7.61% 6.52%

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Eli Lilly & Co.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Eli Lilly & Co.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Eli Lilly & Co.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Net Profit Margin

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 8,318,400  3,232,000  (204,100) 2,737,600  2,408,400 
Revenue 22,319,500  24,555,700  22,871,300  21,222,100  19,958,700 
Profitability Ratio
Net profit margin1 37.27% 13.16% -0.89% 12.90% 12.07%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 8,345,400  3,225,300  (330,400) 2,951,500  2,318,800 
Revenue 22,319,500  24,555,700  22,871,300  21,222,100  19,958,700 
Profitability Ratio
Adjusted net profit margin2 37.39% 13.13% -1.44% 13.91% 11.62%

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 8,318,400 ÷ 22,319,500 = 37.27%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × 8,345,400 ÷ 22,319,500 = 37.39%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Eli Lilly & Co.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 8,318,400  3,232,000  (204,100) 2,737,600  2,408,400 
Total Eli Lilly and Company shareholders’ equity 2,606,900  9,828,700  11,592,200  14,007,700  14,571,300 
Profitability Ratio
ROE1 319.09% 32.88% -1.76% 19.54% 16.53%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 8,345,400  3,225,300  (330,400) 2,951,500  2,318,800 
Total Eli Lilly and Company shareholders’ equity 2,606,900  9,828,700  11,592,200  14,007,700  14,571,300 
Profitability Ratio
Adjusted ROE2 320.13% 32.82% -2.85% 21.07% 15.91%

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROE = 100 × Net income (loss) ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × 8,318,400 ÷ 2,606,900 = 319.09%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × 8,345,400 ÷ 2,606,900 = 320.13%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Eli Lilly & Co.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 8,318,400  3,232,000  (204,100) 2,737,600  2,408,400 
Total assets 39,286,100  43,908,400  44,981,000  38,805,900  35,568,900 
Profitability Ratio
ROA1 21.17% 7.36% -0.45% 7.05% 6.77%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 8,345,400  3,225,300  (330,400) 2,951,500  2,318,800 
Total assets 39,286,100  43,908,400  44,981,000  38,805,900  35,568,900 
Profitability Ratio
Adjusted ROA2 21.24% 7.35% -0.73% 7.61% 6.52%

Based on: 10-K (filing date: 2020-02-19), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 8,318,400 ÷ 39,286,100 = 21.17%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × 8,345,400 ÷ 39,286,100 = 21.24%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Eli Lilly & Co.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.