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

Eli Lilly & Co. (NYSE:LLY)

Analysis of Operating Leases

Advanced level

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Eli Lilly & Co., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total undiscounted future operating lease payments 805,200  773,200  873,600 
Discount rate1 3.32% 2.39% 2.27%
 
Total present value of future operating lease payments 696,637  702,323  787,870 

Based on: 10-K (filing date: 2021-02-17), 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).

1 Weighted-average interest rate for Eli Lilly & Co.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.32%
2019 155,800  2019 155,800  150,794 
2020 128,000  2020 128,000  119,906 
2021 89,000  2021 89,000  80,693 
2022 74,700  2022 74,700  65,552 
2023 58,200  2023 58,200  49,431 
2024 and thereafter 299,500  2024 58,200  47,843 
2025 58,200  46,305 
2026 58,200  44,818 
2027 58,200  43,377 
2028 58,200  41,984 
2029 8,500  5,935 
Total: 805,200  805,200  696,637 

Based on: 10-K (filing date: 2019-02-19).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.39%
2018 130,800  2018 130,800  127,747 
2019 119,200  2019 119,200  113,700 
2020 105,700  2020 105,700  98,470 
2021 94,700  2021 94,700  86,163 
2022 77,100  2022 77,100  68,512 
2023 and thereafter 245,700  2023 77,100  66,913 
2024 77,100  65,351 
2025 77,100  63,825 
2026 14,400  11,642 
Total: 773,200  773,200  702,323 

Based on: 10-K (filing date: 2018-02-20).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.27%
2017 134,800  2017 134,800  131,808 
2018 120,900  2018 120,900  115,593 
2019 109,900  2019 109,900  102,743 
2020 93,300  2020 93,300  85,288 
2021 75,300  2021 75,300  67,306 
2022 and thereafter 339,400  2022 75,300  65,812 
2023 75,300  64,351 
2024 75,300  62,923 
2025 75,300  61,526 
2026 38,200  30,520 
Total: 873,600  873,600  787,870 

Based on: 10-K (filing date: 2017-02-21).


Adjustments to Financial Statements for Operating Leases

Eli Lilly & Co., adjustments to financial statements

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 46,633,100  39,286,100  43,908,400  44,981,000  38,805,900 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  —  696,637  702,323  787,870 
Total assets (adjusted) 46,633,100  39,286,100  44,605,037  45,683,323  39,593,770 
Adjustment to Total Debt
Total debt (as reported) 16,595,300  15,317,200  12,770,900  13,647,100  10,305,200 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  —  696,637  702,323  787,870 
Add: Current portions of operating lease liabilities (included in Other current liabilities) 150,900  121,700  —  —  — 
Add: Long-term portions of operating lease liabilities (included in Other noncurrent liabilities) 512,800  486,700  —  —  — 
Total debt (adjusted) 17,259,000  15,925,600  13,467,537  14,349,423  11,093,070 

Based on: 10-K (filing date: 2021-02-17), 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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Eli Lilly & Co., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total Asset Turnover1
Reported total asset turnover 0.53 0.57 0.56 0.51 0.55
Adjusted total asset turnover 0.53 0.57 0.55 0.50 0.54
Debt to Equity2
Reported debt to equity 2.94 5.88 1.30 1.18 0.74
Adjusted debt to equity 3.06 6.11 1.37 1.24 0.79
Return on Assets3 (ROA)
Reported ROA 13.28% 21.17% 7.36% -0.45% 7.05%
Adjusted ROA 13.28% 21.17% 7.25% -0.45% 6.91%

Based on: 10-K (filing date: 2021-02-17), 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eli Lilly & Co.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Eli Lilly & Co.’s adjusted debt to equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Eli Lilly & Co.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Revenue 24,539,800  22,319,500  24,555,700  22,871,300  21,222,100 
Total assets 46,633,100  39,286,100  43,908,400  44,981,000  38,805,900 
Activity Ratio
Total asset turnover1 0.53 0.57 0.56 0.51 0.55
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Revenue 24,539,800  22,319,500  24,555,700  22,871,300  21,222,100 
Adjusted total assets 46,633,100  39,286,100  44,605,037  45,683,323  39,593,770 
Activity Ratio
Adjusted total asset turnover2 0.53 0.57 0.55 0.50 0.54

Based on: 10-K (filing date: 2021-02-17), 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).

2020 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 24,539,800 ÷ 46,633,100 = 0.53

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 24,539,800 ÷ 46,633,100 = 0.53

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eli Lilly & Co.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Total debt 16,595,300  15,317,200  12,770,900  13,647,100  10,305,200 
Total Eli Lilly and Company shareholders’ equity 5,641,600  2,606,900  9,828,700  11,592,200  14,007,700 
Solvency Ratio
Debt to equity1 2.94 5.88 1.30 1.18 0.74
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 17,259,000  15,925,600  13,467,537  14,349,423  11,093,070 
Total Eli Lilly and Company shareholders’ equity 5,641,600  2,606,900  9,828,700  11,592,200  14,007,700 
Solvency Ratio
Adjusted debt to equity2 3.06 6.11 1.37 1.24 0.79

Based on: 10-K (filing date: 2021-02-17), 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).

2020 Calculations

1 Debt to equity = Total debt ÷ Total Eli Lilly and Company shareholders’ equity
= 16,595,300 ÷ 5,641,600 = 2.94

2 Adjusted debt to equity = Adjusted total debt ÷ Total Eli Lilly and Company shareholders’ equity
= 17,259,000 ÷ 5,641,600 = 3.06

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Eli Lilly & Co.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 6,193,700  8,318,400  3,232,000  (204,100) 2,737,600 
Total assets 46,633,100  39,286,100  43,908,400  44,981,000  38,805,900 
Profitability Ratio
ROA1 13.28% 21.17% 7.36% -0.45% 7.05%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss) 6,193,700  8,318,400  3,232,000  (204,100) 2,737,600 
Adjusted total assets 46,633,100  39,286,100  44,605,037  45,683,323  39,593,770 
Profitability Ratio
Adjusted ROA2 13.28% 21.17% 7.25% -0.45% 6.91%

Based on: 10-K (filing date: 2021-02-17), 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).

2020 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 6,193,700 ÷ 46,633,100 = 13.28%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 6,193,700 ÷ 46,633,100 = 13.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Eli Lilly & Co.’s adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.