Common-Size Income Statement
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Eli Lilly & Co. pages available for free this week:
- Income Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
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Eli Lilly & Co., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends over the five-year period. A consistent improvement in gross margin is observed, alongside fluctuating expenses and ultimately, a significant increase in net income as a percentage of revenue.
- Profitability
- Gross margin demonstrates a steady upward trend, increasing from 74.18% in 2021 to 83.04% in 2025. This suggests improving efficiency in production or increased pricing power. Operating income as a percentage of revenue exhibits more volatility, peaking at 28.64% in 2024 before reaching a high of 40.35% in 2025. Net income shows a similar pattern, rising from 19.71% in 2021 to 31.67% in 2025, indicating a substantial improvement in overall profitability.
- Cost of Sales
- Cost of sales consistently decreases as a percentage of revenue, moving from -25.82% in 2021 to -16.96% in 2025. This decline contributes directly to the observed improvement in gross margin.
- Operating Expenses
- Research and development expenses initially increase as a percentage of revenue, peaking at -27.29% in 2023, before declining to -20.46% in 2025. Marketing, selling, and administrative expenses also decrease steadily over the period, from -22.71% to -17.02%. Acquired in-process research and development shows significant fluctuation, with a notable increase to -11.14% in 2023, followed by a decrease to -4.46% in 2025. Asset impairment, restructuring, and other special charges are relatively small but show an increase in 2024 before decreasing again in 2025.
- Non-Operating Items
- Interest expense on borrowings remains relatively stable, fluctuating between -1.16% and -1.73% of revenue. Other income (expense) and other net income (expense) exhibit minor variations throughout the period. These items have a limited impact on overall profitability.
- Income Taxes
- Income taxes as a percentage of revenue increase over time, from -2.03% in 2021 to -7.81% in 2025. This increase is consistent with the growth in income before income taxes and suggests a stable effective tax rate.
Overall, the financial performance demonstrates a positive trajectory. The company appears to be managing its costs effectively, particularly cost of sales, while strategically investing in research and development. The substantial increase in net income as a percentage of revenue suggests successful execution of its business strategy.