Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Eli Lilly & Co., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	45,042,700)	34,124,100)	28,541,400)	28,318,400)	24,539,800)
Cost of sales	(8,418,300)	(7,082,200)	(6,629,800)	(7,312,800)	(5,483,300)
Gross margin	36,624,400)	27,041,900)	21,911,600)	21,005,600)	19,056,500)
Research and development	(10,990,600)	(9,313,400)	(7,190,800)	(6,930,700)	(5,976,300)
Marketing, selling, and administrative	(8,593,800)	(7,403,100)	(6,440,400)	(6,431,600)	(6,121,200)
Acquired in-process research and development	(3,280,400)	(3,799,800)	(908,500)	(970,100)	(769,800)
Asset impairment, restructuring, and other special charges	(860,600)	(67,700)	(244,600)	(316,100)	(131,200)
Operating income	12,899,000)	6,457,900)	7,127,300)	6,357,100)	6,058,000)
Interest expense	(780,600)	(485,900)	(331,600)	(339,800)	(359,600)
Interest income	175,200)	173,600)	62,800)	25,400)	33,000)
Net investment gains (losses) on equity securities	(49,500)	(20,200)	(410,700)	176,900)	1,442,200)
Debt extinguishment loss	—)	—)	—)	(405,200)	—)
Retirement benefit plans	461,700)	461,900)	372,900)	289,700)	251,800)
Other income (expense)	(25,400)	(32,700)	(14,300)	51,400)	(195,500)
Other, net, income (expense)	(218,600)	96,700)	(320,900)	(201,600)	1,171,900)
Income before income taxes	12,680,400)	6,554,600)	6,806,400)	6,155,500)	7,229,900)
Income taxes	(2,090,400)	(1,314,200)	(561,600)	(573,800)	(1,036,200)
Net income	10,590,000)	5,240,400)	6,244,800)	5,581,700)	6,193,700)

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: Revenue shows a consistent upward trend over the five-year period, increasing from approximately $24.54 billion in 2020 to about $45.04 billion in 2024. The most significant growth appears between 2023 and 2024, indicating possibly enhanced sales performance or market expansion.
Cost of Sales: The cost of sales has risen from around $5.48 billion in 2020 to $8.42 billion in 2024. Although it increased year over year, the growth rate seems more moderate compared to revenue, which may suggest improved cost management or better economies of scale.
Gross Margin: Gross margin consistently expands, rising from approximately $19.06 billion in 2020 to $36.62 billion in 2024. This indicates an improving profitability at the gross level, with gross margin growth outpacing cost of sales increases, reflecting strengthened operational efficiency or product mix improvements.
Research and Development (R&D): Expenditures on research and development show a steady upward trajectory, from $5.98 billion in 2020 to $10.99 billion in 2024. This significant increase suggests a strategic focus on innovation and future product pipelines, which could impact long-term growth.
Marketing, Selling, and Administrative Expenses: These expenses have increased gradually from $6.12 billion in 2020 to $8.59 billion in 2024. The growth in these costs is consistent but less pronounced than the rise in revenue, which may imply relatively controlled operating expenses in these areas.
Acquired In-Process Research and Development: Spending in this category has fluctuated, starting at $770 million in 2020, peaking at nearly $3.80 billion in 2023, then slightly decreasing to $3.28 billion in 2024. The peak in 2023 suggests significant acquisition activity or investment in third-party R&D during that year.
Asset Impairment, Restructuring, and Other Special Charges: These charges have remained relatively low over the period but show some volatility, with the highest recorded charge of $860.6 million in 2024. This variability could be related to one-off events or strategic restructuring efforts.
Operating Income: Operating income initially increased from $6.06 billion in 2020 to $7.13 billion in 2022, then dipped to $6.46 billion in 2023, before experiencing a sharp rise to $12.90 billion in 2024. The significant jump in 2024 suggests strong operational performance and possibly improved margin management.
Interest Expense and Income: Interest expense has generally increased from $360 million in 2020 to $781 million in 2024, indicating higher debt levels or increased borrowing costs. Conversely, interest income has grown from $33 million to $175 million, but this increase is modest when compared to the rise in expenses.
Net Investment Gains (Losses) on Equity Securities: This line item fluctuates over the years, moving from a gain of $1.44 billion in 2020 to losses in the later years, including losses of $495 thousand in 2024. The inconsistent performance suggests variable success in investment activities or changing market conditions.
Debt Extinguishment Loss: A notable debt extinguishment loss of $405.2 million occurred only in 2021, with no similar items recorded in other years, indicating a one-time impact likely related to refinancing or debt restructuring.
Retirement Benefit Plans: Payments or related accounting entries for retirement benefit plans have steadily increased from $252 million in 2020 to $462 million in 2023, remaining stable in 2024. This suggests growing obligations or accruals associated with employee benefits.
Other Income (Expense) and Other, Net, Income (Expense): These categories show mixed results with occasional gains and losses, reflecting variability in miscellaneous operational or non-operational items. Neither consistently influences income before income taxes strongly, as amounts fluctuate around relatively low values.
Income Before Income Taxes: Income before taxes follows a fluctuating pattern but overall increases from $7.23 billion in 2020 to $12.68 billion in 2024, aligned with the trends observed in operating income and other income components.
Income Taxes: Income taxes paid vary between approximately $561 million and $2.09 billion, peaking in 2024. Tax expense increases generally correspond with higher pre-tax income levels, maintaining a reasonable relationship between profitability and tax burden.
Net Income: Net income shows a generally increasing trend from $6.19 billion in 2020 to $10.59 billion in 2024, despite some fluctuations such as a decline in 2023. The strong recovery and growth in 2024 reflect improved overall profitability and effective expense management.

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Eli Lilly & Co. (NYSE:LLY)

Income Statement