Eli Lilly & Co. (NYSE:LLY)

The financial data over the five-year period reveals significant fluctuations in key performance indicators, primarily net operating profit after taxes (NOPAT), invested capital, and return on invested capital (ROIC).

Net Operating Profit After Taxes (NOPAT)

This metric shows a declining trend from 2020 to 2023, dropping from approximately 6.36 billion US dollars in 2020 to about 3.09 billion US dollars in 2023. However, there is a notable rebound in 2024, with NOPAT increasing sharply to approximately 8.47 billion US dollars, exceeding the 2020 level.

Invested Capital

Invested capital displays a generally upward trend across the period. It increased from around 24.56 billion US dollars in 2020 to approximately 35.80 billion US dollars in 2024. Despite some fluctuations, with a slight dip in 2022, the overall upward movement suggests increased deployment of capital resources in the later years.

Return on Invested Capital (ROIC)

The ROIC percentage declines from 25.89% in 2020 to a low of 10.52% in 2023. This decline corresponds with both a reduction in NOPAT and an increase in invested capital, indicating decreased efficiency in generating returns from capital employed. In 2024, ROIC recovers markedly to 23.65%, aligning with the surge in NOPAT and continued growth in invested capital, suggesting a restoration of capital efficiency.

Overall, the data outlines a period marked by reduced profitability and capital efficiency from 2020 through 2023, followed by a strong recovery in 2024. The rebound in 2024 is particularly significant as it not only reverses the downward trends but also improves the company’s return levels close to those recorded in 2020. The increase in invested capital over the full period indicates ongoing investment activities which, after a period of diminished returns, appear to have begun generating improved profits and returns on capital.

Operating Profit Margin (OPM)

The operating profit margin exhibited a fluctuating trend over the observed periods. Starting at a high of 30.98% in 2020, it declined significantly to 22.91% in 2021, followed by a moderate recovery to 24.99% in 2022. The margin then decreased further to 19.99% in 2023 before rising again sharply to 29.7% in 2024. This pattern indicates variable operational efficiency and profitability across the years, with a notable dip in 2023 and a strong rebound the following year.

Turnover of Capital (TO)

The turnover of capital showed a consistent upward trend over the period. Commencing at a ratio of 1 in 2020, the ratio increased steadily each year, reaching 1.26 by the end of 2024. This gradual increase suggests improving efficiency in utilizing capital to generate revenue, reflecting potential gains in asset management or operational productivity.

1 – Effective Cash Tax Rate (CTR)

This metric, representing the complement of the effective cash tax rate, experienced a general decline from 83.63% in 2020 down to a low of 45.3% in 2023, before recovering somewhat to 63.28% in 2024. A declining value indicates an increase in the effective tax paid relative to income or cash flow, implying rising tax expenses or reduced tax benefits during the middle years, partially mitigated in the final year.

Return on Invested Capital (ROIC)

The return on invested capital depicted a downward trajectory from 25.89% in 2020 to a nadir of 10.52% in 2023, followed by a substantial recovery to 23.65% in 2024. Such a trend points to decreasing profitability of the company's invested capital over most of the timeframe, with a pronounced decline particularly noticeable through 2022 and 2023. The recovery in 2024 suggests an improvement in generating returns relative to invested capital, potentially associated with the increased operating profit margin and enhanced capital turnover in that year.

The financial data reveals several noteworthy trends in the company's performance over the five-year period ending December 31, 2024.

Net Operating Profit Before Taxes (NOPBT)

The NOPBT shows fluctuation within the five years. Starting at approximately 7.6 billion US dollars in 2020, it declined to about 6.5 billion US dollars in 2021. A moderate recovery occurred in 2022 with a rise to just over 7.1 billion, followed by a slight dip in 2023 to around 6.8 billion. A significant increase is observed in 2024, with NOPBT nearly doubling to approximately 13.4 billion US dollars. This indicates a strong recovery or one-time positive effects in the latest year.

Revenue

Revenue exhibited a consistent upward trajectory, growing steadily each year. From approximately 24.5 billion US dollars in 2020, revenue rose to about 28.3 billion in 2021 and marginally increased to 28.5 billion in 2022. A larger increase occurred in 2023, reaching 34.1 billion, followed by a substantial jump to 45.0 billion US dollars in 2024. This pattern indicates successful top-line growth, with accelerated expansion notably in the final two years.

Operating Profit Margin (OPM)

The operating profit margin demonstrates variability that does not consistently parallel revenue growth. The margin started at nearly 31% in 2020 but declined sharply to just under 23% in 2021. It showed a moderate improvement to 25% in 2022, then decreased again to 20% in 2023. Finally, in 2024, the margin rebounded to roughly 30%. This fluctuation suggests varying cost control and operational efficiency challenges over the years, with the latest year showing a return to a stronger profitability ratio.

Overall, the data indicates solid revenue growth with some volatility in operating profitability. The pronounced increase in both NOPBT and revenue in 2024, combined with the improved operating profit margin, suggests a particularly successful year, possibly driven by enhanced operational performance or favorable market conditions. Prior years exhibit cyclical fluctuations in profitability margins despite steady revenue increases, highlighting potential areas for cost management improvements during that period.

The financial data reveals a consistent upward trend in revenue over the observed five-year period. Starting from approximately 24.54 billion US dollars in 2020, revenue increases steadily each year, reaching over 45.04 billion US dollars by 2024. This represents a significant growth trajectory, with the most notable acceleration occurring between 2023 and 2024.

Invested capital also shows an overall upward movement but with some fluctuations. The invested capital starts at about 24.56 billion US dollars in 2020 and increases in 2021 to approximately 26.14 billion US dollars. It then declines slightly in 2022 before rising again in 2023 and registering a substantial increase in 2024 to roughly 35.80 billion US dollars. This pattern indicates some variability in capital deployment, possibly reflecting strategic investments or capital management adjustments during the period.

The turnover of capital ratio, which measures the efficiency of capital usage in generating revenue, demonstrates a generally positive trend with minor deviations. Beginning at a value of 1 in 2020, this ratio increases annually to 1.08 in 2021 and further to 1.17 in 2022. It experiences a slight dip to 1.16 in 2023 but rebounds strongly to 1.26 in 2024. The increasing ratio suggests improving efficiency in the company’s utilization of its invested capital to generate revenues, highlighting enhanced operational effectiveness.

Revenue Growth

Steady and substantial increase each year, with a notable surge from 2023 to 2024.

Invested Capital

Generally upward trend with some fluctuations, indicating variable capital allocation over the years.

Turnover of Capital

Improving ratio overall, reflecting enhanced efficiency in capital use despite a minor dip in 2023.

The financial data reveals several notable trends regarding the company's operating taxes, profitability, and tax rates over the five-year period from 2020 to 2024.

Cash Operating Taxes

There is a clear upward trajectory in cash operating taxes paid by the company. The amount more than tripled from approximately 1.24 billion USD in 2020 to nearly 4.91 billion USD in 2024. This increase suggests a growing tax burden or possibly higher taxable income over the years.

Net Operating Profit Before Taxes (NOPBT)

NOPBT shows fluctuation throughout the period. After a peak of about 7.60 billion USD in 2020, it declined to approximately 6.49 billion USD in 2021. It then slightly recovered to 7.13 billion USD in 2022 but dipped again to around 6.82 billion USD in 2023. A striking increase occurs in 2024, with NOPBT nearly doubling to approximately 13.38 billion USD. This suggests a strong improvement in operational profitability in the latest year following a period of relative volatility.

Effective Cash Tax Rate (CTR)

The effective cash tax rate exhibited considerable variability. Starting at 16.37% in 2020, it rose steadily to 22.3% in 2021 and then sharply to 39.42% in 2022. The rate peaked at 54.7% in 2023, indicating a significantly higher tax impact relative to profits during that year. Subsequently, the rate decreased to 36.72% in 2024, still higher than the early years but notably lower than the previous year's peak.

In summary, the company experienced increasing tax payments and fluctuating profitability with a notable surge in profit in the most recent year. The effective cash tax rate reflected these dynamics, peaking in 2023 before easing in 2024. These patterns may indicate changes in tax legislation, company earnings quality, or one-off tax adjustments impacting the reported figures over time.