Stock Analysis on Net
Stock Analysis on Net

Eli Lilly & Co. (NYSE:LLY)

Common-Size Income Statement 

Eli Lilly & Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of sales -18.69 -20.75 -23.23 -25.82 -22.34
Gross margin 81.31% 79.25% 76.77% 74.18% 77.66%
Research and development -24.40 -27.29 -25.19 -24.47 -24.35
Marketing, selling, and administrative -19.08 -21.69 -22.57 -22.71 -24.94
Acquired in-process research and development -7.28 -11.14 -3.18 -3.43 -3.14
Asset impairment, restructuring, and other special charges -1.91 -0.20 -0.86 -1.12 -0.53
Operating income 28.64% 18.92% 24.97% 22.45% 24.69%
Interest expense -1.73 -1.42 -1.16 -1.20 -1.47
Interest income 0.39 0.51 0.22 0.09 0.13
Net investment gains (losses) on equity securities -0.11 -0.06 -1.44 0.62 5.88
Debt extinguishment loss 0.00 0.00 0.00 -1.43 0.00
Retirement benefit plans 1.03 1.35 1.31 1.02 1.03
Other income (expense) -0.06 -0.10 -0.05 0.18 -0.80
Other, net, income (expense) -0.49% 0.28% -1.12% -0.71% 4.78%
Income before income taxes 28.15% 19.21% 23.85% 21.74% 29.46%
Income taxes -4.64 -3.85 -1.97 -2.03 -4.22
Net income 23.51% 15.36% 21.88% 19.71% 25.24%

Based on: 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), 10-K (reporting date: 2020-12-31).

Revenue Consistency
Revenue remained stable at 100% through the analyzed periods, serving as a baseline for evaluating other financial metrics expressed as percentages of revenue.
Cost of Sales and Gross Margin
The cost of sales decreased steadily from 22.34% in 2020 to 18.69% in 2024, indicating improved cost efficiency. Correspondingly, the gross margin expanded from 77.66% to 81.31%, reflecting enhanced profitability at the gross level.
Research and Development Expenses
Research and development (R&D) expenses remained relatively stable, fluctuating between 24.35% and 27.29%. A peak occurred in 2023 at 27.29%, but the proportion receded to 24.4% by 2024, suggesting a potential refocus or optimization of R&D spending.
Marketing, Selling, and Administrative Expenses
These expenses showed a clear declining trend, dropping from 24.94% in 2020 to 19.08% in 2024. This decrease suggests improved operational efficiency or cost-cutting measures in selling and administrative functions.
Acquired In-Process Research and Development
Significant volatility was observed in this category, with a marked increase to 11.14% in 2023 followed by a reduction to 7.28% in 2024. This spike in 2023 could be linked to strategic acquisitions or intensified investment in acquired research assets.
Asset Impairment, Restructuring, and Special Charges
These charges mostly remained low but spiked from 0.2% in 2023 to 1.91% in 2024, indicating increased one-time costs or restructuring efforts in the latest period.
Operating Income
Operating income as a percentage of revenue fluctuated, peaking at 28.64% in 2024 after a decline to 18.92% in 2023. This rebound indicates improved operational profitability following the prior year's dip.
Interest Expense and Income
Interest expense showed a slight increase over time, moving from 1.47% in 2020 to 1.73% in 2024, potentially reflecting increased borrowing costs or debt levels. Interest income remained low but showed some variability, peaking at 0.51% in 2023 before retreating slightly.
Net Investment Gains (Losses) on Equity Securities
Net investment gains turned negative after 2020, with notable losses in 2022 (-1.44%), 2023 (-0.06%), and 2024 (-0.11%), indicating fluctuating investment performance impacting overall earnings.
Debt Extinguishment Loss
A loss of 1.43% was recorded in 2021, absent in other periods, indicating a one-time cost related to debt refinancing or retirement.
Retirement Benefit Plans
Contributions or expenses related to retirement benefit plans remained steady, hovering around 1% with minor fluctuations, suggesting stable pension-related financial impact.
Other Income and Expenses
This category was generally minor and volatile, with both positive and negative swings, reflecting miscellaneous income and expenses that did not consistently impact financials predictably.
Income Before Income Taxes
This metric tracked closely with operating income, showing a decline to 19.21% in 2023 and subsequent recovery to 28.15% in 2024, signaling an improvement in profitability before tax considerations.
Income Taxes
Income taxes as a percentage of revenue decreased sharply in 2021 and 2022, around 2%, but increased again to 4.64% by 2024, suggesting changes in taxable income or tax strategies over time.
Net Income
Net income demonstrated a downward trend post-2020, declining from 25.24% in 2020 to a low of 15.36% in 2023, followed by a recovery to 23.51% in 2024. This pattern indicates initial pressure on profitability followed by a strong rebound.