Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Eli Lilly & Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings and current maturities of long-term debt	1,635)	5,117)	6,905)	1,501)	1,538)
Accounts payable	5,379)	3,229)	2,599)	1,931)	1,671)
Employee compensation	2,375)	2,094)	1,650)	1,060)	958)
Sales rebates and discounts	17,382)	11,539)	11,689)	8,784)	6,846)
Other current liabilities	8,457)	6,398)	4,451)	3,863)	4,040)
Current liabilities	35,228)	28,377)	27,293)	17,138)	15,053)
Long-term debt, excluding current maturities	40,868)	28,527)	18,321)	14,738)	15,346)
Long-term income taxes payable	5,875)	4,061)	3,849)	3,710)	3,920)
Other noncurrent liabilities	3,970)	3,479)	3,679)	3,129)	5,332)
Noncurrent liabilities	50,713)	36,067)	25,849)	21,576)	24,599)
Total liabilities	85,941)	64,443)	53,143)	38,714)	39,651)
Common stock, no par value	590)	592)	594)	594)	596)
Additional paid-in capital	7,346)	7,439)	7,250)	6,921)	6,833)
Retained earnings	24,470)	13,545)	10,312)	10,043)	8,959)
Employee benefit trust	(3,013)	(3,013)	(3,013)	(3,013)	(3,013)
Accumulated other comprehensive loss	(2,880)	(4,322)	(4,327)	(3,845)	(4,343)
Other equity	22)	(50)	(44)	(51)	(53)
Total Eli Lilly and Company shareholders’ equity	26,535)	14,192)	10,772)	10,650)	8,979)
Noncontrolling interests	—)	80)	92)	126)	176)
Total equity	26,535)	14,272)	10,864)	10,775)	9,155)
Total liabilities and equity	112,476)	78,715)	64,006)	49,490)	48,806)

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 company’s liabilities and stockholders’ equity demonstrate significant changes over the five-year period. Total liabilities increased substantially, while stockholders’ equity also grew, albeit at a slower rate initially. A notable trend is the increasing reliance on debt financing, particularly in the later years of the period.

Current Liabilities: Current liabilities exhibited a consistent upward trend, increasing from US$15,053 million in 2021 to US$35,228 million in 2025. The most significant drivers of this increase were substantial growth in sales rebates and discounts, accounts payable, and other current liabilities. Employee compensation also contributed to the rise, though to a lesser extent. This suggests a potential increase in sales volume coupled with evolving payment terms with suppliers and accruals.
Noncurrent Liabilities: Noncurrent liabilities also increased over the period, rising from US$24,599 million in 2021 to US$50,713 million in 2025. Long-term debt, excluding current maturities, was the primary contributor to this growth, nearly doubling over the five years. Long-term income taxes payable also increased, though at a more moderate pace. The increase in long-term debt suggests a strategic decision to finance growth through borrowing.
Total Liabilities: As a result of the increases in both current and noncurrent liabilities, total liabilities more than doubled, growing from US$39,651 million in 2021 to US$85,941 million in 2025. This represents a significant increase in the company’s financial obligations.
Stockholders’ Equity: Total stockholders’ equity also increased, moving from US$9,155 million in 2021 to US$26,535 million in 2025. Retained earnings were the primary driver of this growth, increasing significantly, particularly between 2023 and 2025. Common stock remained relatively stable, while additional paid-in capital experienced modest growth. Accumulated other comprehensive loss decreased, contributing positively to the overall equity increase. The growth in retained earnings indicates profitability and reinvestment of earnings.
Debt to Equity: While not explicitly calculated, the trend suggests a rising debt-to-equity ratio. The substantial increase in total liabilities coupled with a more moderate increase in total equity indicates a greater reliance on debt financing relative to equity financing. This shift in capital structure could potentially increase financial risk.
Overall Trend: The company experienced substantial growth in both liabilities and equity. However, the growth in liabilities significantly outpaced the growth in equity, indicating an increasing reliance on debt to fund operations and expansion. The increases in accounts payable, sales rebates, and long-term debt are particularly noteworthy and warrant further investigation into the underlying business drivers and potential financial implications.

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Eli Lilly & Co. (NYSE:LLY)

Balance Sheet: Liabilities and Stockholders’ Equity