Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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).
- Short-term borrowings and current maturities of long-term debt
- This component exhibited a notable increase from 0.02% in 2020 to a peak of 10.79% in 2023, followed by a decrease to 6.5% in 2024. The sharp rise suggests a shift toward greater short-term financing or reclassification of debt maturities, which slightly reversed in the latest year.
- Accounts payable
- Accounts payable showed a gradual rising trend over the period, increasing from 3.45% in 2020 to 4.1% in 2024. This steady increase indicates a growing reliance on trade credit or higher purchasing activity on credit terms.
- Employee compensation
- This liability component remained relatively stable, fluctuating mildly around the 2% level, rising slightly to 2.66% in 2024. The data suggests a consistent but modest increase in employee-related obligations relative to total liabilities and equity.
- Sales rebates and discounts
- Sales rebates and discounts as a percentage of total liabilities and equity increased significantly from 12.55% in 2020 to a high of 18.26% in 2023, before coming down to 14.66% in 2024. The pronounced peak in 2023 may reflect intensified discounting or rebate programs to drive sales, easing somewhat in the final year.
- Dividends payable
- Dividends payable rose moderately from 1.65% in 2020 to 2.06% in 2022, then decreased slightly to 1.71% by 2024. This pattern implies a peak in dividend obligations mid-period followed by a slight reduction.
- Other current liabilities
- Other current liabilities declined steadily from 6.96% in 2020 to 5.13% in 2023, then increased again to 6.42% in 2024. This variability suggests shifting classifications or fluctuations in miscellaneous short-term obligations.
- Current liabilities
- The overall current liabilities proportion rose markedly from 26.77% in 2020 to a peak of 42.64% in 2023, before reducing to 36.05% in 2024. This substantial increase mainly reflects rising short-term borrowings and other current accruals, indicating a higher short-term funding reliance that somewhat eased later.
- Long-term debt, excluding current maturities
- Long-term debt decreased from 35.57% in 2020 to 28.62% in 2023, then rose sharply to 36.24% in 2024. The initial decline suggests debt repayments or refinancing, while the jump in 2024 may indicate new long-term borrowings or reclassification effects.
- Accrued retirement benefits
- Accrued retirement benefits showed a consistent declining trend from 8.78% in 2020 to 1.65% in 2024. This reduction points to either payment of retirement obligations, changes in actuarial assumptions, or benefit plan modifications reducing liabilities.
- Long-term income taxes payable
- Long-term income taxes payable decreased steadily from 8.23% in 2020 to 5.16% in 2024, reflecting either tax payments, adjustments, or changing deferred tax positions.
- Other noncurrent liabilities
- Other noncurrent liabilities declined significantly from 8.16% in 2020 to 2.77% in 2024, indicating a reduction in miscellaneous long-term obligations or reclassifications to current liabilities.
- Noncurrent liabilities
- Noncurrent liabilities decreased from 60.74% in 2020 to 40.39% in 2023, then rose to 45.82% in 2024. The trend reflects a broad decline in long-term obligations during the initial years, followed by some reversal, possibly linked to the increase in long-term debt in 2024.
- Total liabilities
- Total liabilities decreased from 87.51% in 2020 to 78.23% in 2022, then increased to 83.03% in 2023 and slightly declined to 81.87% in 2024. This suggests a general reduction in total liabilities during early years followed by a modest rebound thereafter.
- Common stock, no par value
- This equity component declined steadily from 1.28% in 2020 to 0.75% in 2024, indicating either share repurchases, capital structure adjustments, or declining relative book value of common stock.
- Additional paid-in capital
- Additional paid-in capital decreased from 14.54% in 2020 to 9.45% in 2024, showing a gradual decline that may stem from share buybacks, amortization of capital premiums, or adjustments in equity accounts.
- Retained earnings
- Retained earnings rose from 16.79% in 2020 to 20.29% in 2022, then declined to 16.11% in 2023 before a minor recovery to 17.21% in 2024. The fluctuation suggests variations in net earnings retention and possible dividend distributions.
- Employee benefit trust
- The negative balance in employee benefit trust decreased in absolute value, from -6.46% in 2020 to -3.83% in 2024, suggesting a strengthening of this equity component or reduced offsetting liabilities within this category.
- Accumulated other comprehensive loss
- Accumulated other comprehensive loss improved from -13.93% in 2020 to -5.49% in 2024, reflecting a reduction in unrealized losses or adverse valuation adjustments recognized in equity.
- Cost of common stock in treasury
- Cost of common stock in treasury as a percentage of total liabilities and equity decreased marginally from -0.12% in 2020 to -0.06% in 2024, indicating a slight reduction in treasury stock holdings or their offsetting impact.
- Total Eli Lilly and Company shareholders’ equity
- This aggregate equity measure increased from 12.1% in 2020 to 21.52% in 2022, then declined to 16.83% in 2023 with a slight recovery to 18.03% in 2024. Such variations reflect the combined effects of earnings, equity transactions, and other comprehensive income items influencing shareholders' equity.
- Noncontrolling interests
- Noncontrolling interests decreased from 0.39% in 2020 to 0.10% in 2024, indicating a reduction in the minority interest within consolidated subsidiaries.
- Total equity
- Total equity mirrored trends in primary equity components, rising from 12.49% in 2020 to 21.77% in 2022, then decreasing to 16.97% in 2023 and increasing slightly to 18.13% in 2024, illustrating fluctuations in net assets attributable to shareholders over time.
- Total liabilities and equity
- Consistently balanced at 100%, this confirms the proper composition of the capital structure throughout the years under review.