Eli Lilly & Co. (NYSE:LLY)

The analysis reveals several noteworthy trends in the financial performance and position over the reported periods.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit relative stability with minor fluctuations. The reported ratio increased from 0.53 in 2020 to 0.58 by 2021 and 2022, declined to 0.53 in 2023, then rose again to 0.57 in 2024. Adjusted figures follow a similar pattern but with higher values, peaking at 0.64 in 2024. This suggests consistent asset utilization efficiency with slight improvement in the adjusted measure recently.

Current Ratio

The current ratio shows a declining trend from 1.4 in 2020 to a low of 0.94 in 2023, followed by a recovery to 1.15 in 2024. This decline indicates a reduction in short-term liquidity over the first four years, with a partial rebound in the last year, though still below the initial level, possibly signaling tighter working capital management.

Debt to Equity Ratio

Reported debt to equity ratios demonstrate a decrease from 2.94 in 2020 to 1.52 in 2022, then increased markedly to 2.37 by 2024. The adjusted ratios tell a more volatile story, dropping from 3.39 in 2020 to 2.1 in 2022, then surging dramatically to 5.53 by 2024. The sharp increase in adjusted debt to equity suggests significant leveraging and increased financial risk in recent years.

Debt to Capital Ratio

Debt to capital ratios show a gradual decrease from 0.75 (reported) and 0.77 (adjusted) in 2020 to about 0.60-0.68 in 2022, followed by an increase to about 0.70 (reported) and 0.85 (adjusted) by 2024. This pattern reflects initial deleveraging efforts followed by renewed capital structuring with relatively higher reliance on debt towards the end of the period.

Financial Leverage

Reported financial leverage decreases from 8.27 in 2020 to 4.65 in 2022 before rising again to around 5.5 in 2024. Adjusted financial leverage trends similarly but with a marked increase after 2022, reaching 11.22 by 2024. The elevated adjusted leverage highlights increased use of debt relative to equity, which could amplify returns but also risk exposure.

Net Profit Margin

Reported net profit margin declines from 25.24% in 2020 to 15.36% in 2023 before recovering to 23.51% in 2024. Adjusted margins feature more volatility with a peak of 24.47% in 2021, a substantial dip to 6.81% in 2023, then an improvement to 17.65% in 2024. This indicates fluctuations in profitability, with challenges to margin stability particularly noticeable in adjusted results.

Return on Equity (ROE)

ROE steadily declines from very high levels: reported ROE drops from 109.79% in 2020 to 48.65% in 2023 but surges to 74.62% in 2024. Adjusted ROE similarly falls from 120.07% in 2020 to 42.98% in 2023 before rising sharply to 126.28% in 2024. These elevated ROEs, with sharp fluctuations, likely reflect the impact of high financial leverage and changing profitability over the years.

Return on Assets (ROA)

ROA trends downward from 13.28% (reported) and 13.94% (adjusted) in 2020 to 8.19% and 3.97%, respectively, in 2023, followed by recovery to 13.45% and 11.25% in 2024. This suggests a reduction in asset profitability during the mid-period, with an improvement in the final year, paralleling patterns seen in margins and turnover.

Overall, the financial ratios indicate that while asset utilization and profitability experienced periods of decline and volatility, there was a noticeable rebound in 2024 across multiple measures. The firm has increasingly used leverage, especially in adjusted terms, leading to heightened financial risk but also enabling elevated returns on equity when profitability recovered. Short-term liquidity showed compression mid-period but improved by the end. These trends suggest a phase of financial restructuring and operational adjustment with a recent improvement in performance indicators.

Revenue Growth

There is a consistent upward trend in revenue from 2020 to 2024. Revenue increased from approximately 24.54 billion US dollars in 2020 to 45.04 billion US dollars in 2024, nearly doubling over the five-year period. The growth was especially pronounced in the last two years, with a substantial jump from 34.12 billion in 2023 to 45.04 billion in 2024.

Total Assets Development

Total assets have shown steady growth each year, rising from 46.63 billion US dollars in 2020 to 78.71 billion US dollars in 2024. The increase is somewhat more accelerated in the latter part of the period, particularly between 2022 and 2024, reflecting significant asset base expansion.

Reported Total Asset Turnover

The reported total asset turnover ratio displays relatively minor fluctuations. It improved from 0.53 in 2020 to 0.58 in 2021 and remained stable at 0.58 in 2022. However, it declined to 0.53 in 2023 before recovering somewhat to 0.57 in 2024. This indicates that efficiency in generating revenue from the total assets has been mostly stable, with slight variations, and a return to near early-period efficiency levels by 2024.

Adjusted Total Assets Trends

The adjusted total assets follow a growth pattern very similar to total assets, increasing from 43.79 billion US dollars in 2020 to 70.67 billion in 2024. This suggests that after adjustments, the asset base remains substantial and grows consistently over time.

Adjusted Total Asset Turnover Analysis

The adjusted total asset turnover ratio is consistently higher than the reported ratio, indicating possibly more efficient use of the adjusted asset base. It rose from 0.56 in 2020 to a peak of 0.61 in both 2021 and 2022, dipped slightly to 0.58 in 2023, and then increased to 0.64 in 2024. The trend suggests an improvement in asset utilization efficiency related to the adjusted asset values, especially notable in the most recent year.

The analysis of the financial data over the five-year period reveals notable trends and fluctuations in liquidity measures. Both current assets and current liabilities have shown a general upward trajectory, with current assets growing from approximately 17.46 billion USD in 2020 to about 32.74 billion USD in 2024. Current liabilities have increased even more substantially, from around 12.48 billion USD to approximately 28.38 billion USD over the same period.

The reported current ratio, which measures the company's short-term liquidity by comparing current assets to current liabilities, has exhibited a declining trend from 1.4 in 2020 to a low of 0.94 in 2023, before recovering to 1.15 in 2024. This suggests that liquidity had tightened significantly by 2023, with current assets becoming slightly insufficient to cover current liabilities, but showed signs of improvement in 2024.

Adjusted current assets and the adjusted current ratio follow the same movement and values as the reported counterparts, indicating that the adjustments made to current assets have minimal or no impact on the overall liquidity assessment.

Current Assets

Exhibited steady growth over the period, increasing by about 87.5% from 2020 to 2024, with a marked increase between 2022 and 2023.

Current Liabilities

Also increased substantially, more than doubling from 2020 to 2024, which has pressured liquidity ratios downward for much of the period.

Current Ratio

Declined steadily from 1.4 in 2020 to below 1 (0.94) in 2023, suggesting potential liquidity strain, but rebounded to 1.15 in 2024, indicating improved ability to cover liabilities.

Adjusted Metrics

The similarity between reported and adjusted figures suggests that adjustments do not materially affect the assessment of short-term financial health.

In summary, the data indicates growing operational scale with increases in both assets and liabilities. The reduction and subsequent recovery in the current ratio highlights a period of decreased liquidity which improves by the end of the latest reporting period. The company appears to have taken measures to strengthen its liquidity position following the dip observed in 2023.

The financial data indicates several noteworthy trends in the company's leverage and capital structure over the five-year period.

Total Debt

Total debt initially showed a slight increase from 16,595,300 thousand US$ at the end of 2020 to 16,884,700 thousand US$ in 2021, followed by a modest decrease in 2022. However, from 2022 onward, there was a pronounced increase in total debt, reaching 33,644,200 thousand US$ by the end of 2024. This reflects a near doubling of total debt over the last two years under review.

Total Shareholders’ Equity

The reported shareholders’ equity demonstrated growth from 5,641,600 thousand US$ in 2020 to 10,649,800 thousand US$ in 2022, with a plateau in 2023 and further increase to 14,192,100 thousand US$ by end of 2024. This upward trend indicates a strengthening of the company’s equity base, although growth was more stable in the last two years.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreased from 2.94 in 2020 to 1.52 in 2022, indicating a reduction in leverage relative to equity. However, it then rose again to 2.37 by 2024, reflecting the increased debt load outpacing equity growth towards the end of the period.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to reported total debt, increasing slightly from 17,259,000 thousand US$ in 2020 to 17,570,400 thousand US$ in 2021 before declining in 2022. Subsequently, adjusted debt surged significantly to 34,790,800 thousand US$ by 2024, marking a substantial increase in obligations considered under the adjusted measure.

Adjusted Total Equity

Adjusted total equity, in contrast to the reported equity, showed growth through 2021 but then recorded a decline in 2023 to 5,402,700 thousand US$, followed by a modest recovery to 6,296,900 thousand US$ in 2024. This more volatile pattern suggests the adjustments may incorporate factors impacting equity valuation or components differently than reported figures.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declined initially from 3.39 in 2020 to approximately 2.1 in 2022, indicating reduced leverage relative to adjusted equity. However, a sharp increase to 5.53 by 2024 highlights a significant rise in leverage when considering the adjusted balances, underlining growing financial risk or increased debt burden on the adjusted basis.

In summary, the company’s leverage ratios experienced an improvement from 2020 through 2022, with decreasing debt relative to equity. However, the subsequent years exhibit a reversal, characterized by rapid accumulation of debt and an increase in leverage ratios, particularly pronounced in the adjusted figures. The equity base, while generally growing on a reported basis, fluctuated under the adjusted measurement, especially with a marked dip in 2023. These trends suggest a strategic increase in debt financing in recent years and highlight the importance of monitoring both reported and adjusted perspectives to fully understand the company’s financial position.

The financial data over the five-year period reveals notable trends in the company’s capital structure, particularly concerning its debt levels and related ratios.

Total Debt

Total debt showed a relatively stable level from 2020 to 2022, ranging between approximately 16.2 billion and 16.9 billion US dollars. However, from 2023 onwards, there was a marked increase, with total debt rising substantially to 25.2 billion and further to 33.6 billion US dollars by 2024. This indicates a significant rise in leverage during the latter years of the period.

Total Capital

Total capital followed an increasing trend throughout the entire period. Beginning at around 22.2 billion US dollars in 2020, it gradually increased each year, with a larger jump occurring between 2022 and 2023, ultimately reaching approximately 47.8 billion US dollars in 2024. This growth in capital suggests an expansion of the company’s financing base, both from debt and equity sources.

Reported Debt to Capital Ratio

The reported debt to capital ratio exhibited a decreasing trend from 0.75 in 2020 to 0.60 in 2022, which indicates a reduction in reliance on debt relative to capital during the initial three years. However, this trend reversed in 2023 and 2024, with the ratio increasing back to 0.70 in both years. Thus, despite the overall capital growth, the proportion of debt financing rose in the latter part of the period.

Adjusted Total Debt and Capital

The adjusted figures show a consistent pattern similar to the reported numbers. Adjusted total debt experienced stability through 2022, followed by a sharp increase in 2023 and 2024, rising from approximately 17.0 billion to 34.8 billion US dollars. Adjusted total capital increased steadily from 22.3 billion in 2020 to 41.1 billion in 2024, with a notable slowdown in growth in 2022 and 2023 compared to earlier years.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased slightly from 0.77 in 2020 to 0.68 during 2021 and 2022, signaling reduced leverage. However, from 2023 there was a sharp increase to 0.83, extending further to 0.85 in 2024, indicating a significant increase in the portion of debt on the capital base after adjustment. This suggests that the company’s true leverage might be higher than shown by the reported ratio.

Overall, the data reflects a strategic increase in debt financing starting in 2023, while the total capital base expanded steadily over the entire timeframe. The shift in leverage ratios, especially the adjusted ratios, points to a heightened dependence on debt financing in the most recent years assessed, which could have implications for financial risk and cost of capital going forward.

Over the observed periods, the total assets of the company demonstrate a clear upward trajectory, increasing steadily from approximately 46.6 billion US dollars in 2020 to nearly 78.7 billion US dollars by the end of 2024. This represents a substantial growth in the asset base, with a pronounced acceleration in asset accumulation particularly noticeable between 2022 and 2024.

Shareholders’ equity also shows consistent growth, rising from about 5.6 billion US dollars in 2020 to nearly 14.2 billion US dollars by 2024. The largest year-over-year increase in equity occurs between 2023 and 2024, suggesting enhanced retained earnings or other equity-augmenting activities during this period.

The reported financial leverage ratio, which measures the relationship between total assets and shareholders’ equity, declines from a high of 8.27 in 2020 to a lower point of 4.65 in 2022, indicating a relative strengthening of equity compared to assets. However, this trend reverses somewhat in the two subsequent years, with leverage increasing to 5.94 in 2023 and slightly decreasing to 5.55 by 2024. This suggests a moderate increase in the use of debt or other liabilities to finance assets after 2022, although the ratio remains below the initial 2020 level.

When adjusted figures are considered, adjusted total assets mirror the pattern of total assets but on a slightly lower scale, rising from approximately 43.8 billion US dollars in 2020 to 70.7 billion US dollars in 2024. This corroborates the overall asset growth trend but reflects the impact of adjustments that reduce the asset base relative to the reported totals.

Contrastingly, adjusted total equity does not maintain the same consistent upward trend as reported equity. After increasing from about 5.1 billion US dollars in 2020 to 8.4 billion US dollars in 2021, it declines to 8.1 billion in 2022 and then experiences a sharp reduction to 5.4 billion in 2023 before a slight recovery to 6.3 billion in 2024. This volatility suggests that the adjustments applied could be related to items that significantly affect the equity base, possibly reflecting reclassifications, write-downs, or other accounting impacts.

The adjusted financial leverage ratio derived from the adjusted figures begins at 8.61 in 2020 and decreases to 5.52 in 2021 but then rises steadily over the following years, reaching 10.82 in 2023 and increasing further to 11.22 in 2024. This contrasting trend compared to the reported leverage ratio indicates that, after adjustments, the company’s leverage has increased significantly in recent years, reflecting either higher debt levels or lower equity as adjusted for certain factors.

In summary, the company’s reported financial position shows substantial asset growth accompanied by growing shareholders’ equity and a generally manageable level of financial leverage. However, the adjusted financial metrics reveal more pronounced leverage and volatility in equity, suggesting the presence of accounting adjustments that materially affect the company’s perceived financial stability and the risk profile associated with its capital structure.

Revenue

The revenue shows a consistent upward trend over the five-year period. Beginning at approximately $24.5 billion in 2020, it increased steadily each year, reaching about $45 billion by the end of 2024. The most significant growth occurred between 2023 and 2024, indicating accelerating sales expansion during the latest year.

Net Income

Net income fluctuated throughout the period. It started at around $6.19 billion in 2020, declined to approximately $5.58 billion in 2021, then rose again to about $6.24 billion in 2022. A decrease followed in 2023 to roughly $5.24 billion, but a marked recovery ensued in 2024, reaching $10.59 billion, which represents the highest net income recorded in this timeframe.

Reported Net Profit Margin

The reported net profit margin experienced volatility alongside net income changes. Declining from 25.24% in 2020 to 19.71% in 2021, it improved to 21.88% in 2022 but fell sharply to 15.36% in 2023. A significant rebound occurred in 2024, with the margin rising to 23.51%, reflecting enhanced profitability relative to revenue in the most recent year.

Adjusted Net Income

Adjusted net income presents a less consistent pattern. It increased from $6.11 billion in 2020 to a peak of $6.93 billion in 2021, then declined substantially to $4.58 billion in 2022 and further to $2.32 billion in 2023. In 2024, adjusted net income improved markedly to $7.95 billion, though it remains below the 2021 peak, indicating periods of exceptional adjustments impacting profitability.

Adjusted Net Profit Margin

Adjusted net profit margin illustrates a declining trend over the initial years, dropping from 24.88% in 2020 to 16.04% in 2022, then falling sharply to 6.81% in 2023. A recovery to 17.65% occurred in 2024, though this margin remains below the early period levels. The pattern points to considerable variability in adjusted profitability margins, suggesting fluctuations in underlying operational performance or non-recurring items.

Overall Insights

The company demonstrated robust revenue growth over the five-year span, with revenue nearly doubling. Net income and profit margins have been more variable, with notable declines in 2021 and 2023, but strong recoveries in 2024. The disparity between reported and adjusted metrics, especially in 2023, implies significant one-time impacts or adjustments influencing financial results. The recovery in 2024 across all measures indicates improved financial performance and operational efficiency relative to recent years.

Net Income

The net income demonstrates variability over the observed periods, initially decreasing from 6,193,700 thousand USD in 2020 to 5,581,700 thousand USD in 2021, followed by a recovery to 6,244,800 thousand USD in 2022. A decline is noted again in 2023, with net income dropping to 5,240,400 thousand USD. However, in 2024, there is a significant increase reaching 10,590,000 thousand USD, representing the highest value within the timeframe.

Total Shareholders' Equity

Total shareholders' equity shows a consistent upward trend throughout the years. Starting from 5,641,600 thousand USD in 2020, it increases significantly to 8,979,200 thousand USD in 2021 and continues rising to 10,649,800 thousand USD in 2022. The upward trajectory persists in 2023 and 2024, reaching 14,192,100 thousand USD in the latest period, indicating strengthening equity base.

Reported Return on Equity (ROE)

Reported ROE declines progressively from 109.79% in 2020 to 62.16% in 2021, then further decreases slightly to 58.64% in 2022 and to 48.65% in 2023. Despite this downward trend, there is a notable recovery in 2024, where reported ROE rises to 74.62%, suggesting improved profitability relative to shareholders' equity during the last year.

Adjusted Net Income

Adjusted net income presents fluctuations distinct from the net income trend. It grows from 6,106,300 thousand USD in 2020 to 6,929,900 thousand USD in 2021, then experiences a significant drop in 2022 to 4,576,900 thousand USD and continues declining sharply to 2,322,300 thousand USD in 2023. However, the figure rebounds notably in 2024, reaching 7,951,600 thousand USD, surpassing previous levels except for 2021.

Adjusted Total Equity

Adjusted total equity increases markedly from 5,085,800 thousand USD in 2020 to 8,387,200 thousand USD in 2021. It decreases modestly to 8,076,800 thousand USD in 2022 and drops more significantly to 5,402,700 thousand USD in 2023. There is a slight recovery in 2024, with adjusted equity reaching 6,296,900 thousand USD, yet it remains below the peak in 2021.

Adjusted Return on Equity (ROE)

Adjusted ROE declines systematically from 120.07% in 2020 to 82.62% in 2021, followed by a drop to 56.67% in 2022 and further to 42.98% in 2023. In 2024, a marked increase occurs, with adjusted ROE rising sharply to 126.28%, exceeding all previous values within the observed period.

Overall Observations

The data reflects a general trend of volatility in profitability measures with cyclical declines followed by strong recoveries in the most recent period (2024). Shareholders' equity shows steady growth, indicating capital strengthening. Both reported and adjusted ROE follow a declining pattern until 2023, then experience significant rebounds in 2024, with adjusted ROE showing an especially pronounced recovery. Adjusted net income and adjusted equity display more pronounced fluctuations compared to their unadjusted counterparts, signaling the impact of adjustments on underlying performance metrics. The substantial profitability improvements in 2024 suggest operational or financial factors that positively influenced returns despite earlier periods of softness.

Net Income

The net income shows variability over the five-year period. It initially decreases from 6,193,700 thousand USD in 2020 to 5,581,700 thousand USD in 2021, followed by an increase to 6,244,800 thousand USD in 2022. Subsequently, it declines again to 5,240,400 thousand USD in 2023 before sharply rising to 10,590,000 thousand USD in 2024, more than doubling the previous year’s figure.

Total Assets

Total assets demonstrate a consistent upward trend throughout the period. Beginning at 46,633,100 thousand USD in 2020, assets increase steadily each year, reaching 78,714,900 thousand USD in 2024. Notably, the growth accelerates in the last two years, with a substantial increase from 64,006,300 thousand USD in 2023 to 78,714,900 thousand USD in 2024.

Reported Return on Assets (ROA)

The reported ROA displays a fluctuating pattern, starting at 13.28% in 2020 and declining to 11.44% in 2021. It recovers moderately to 12.62% in 2022 before a significant drop to 8.19% in 2023. In 2024, ROA rises again to 13.45%, surpassing the initial 2020 level.

Adjusted Net Income

Adjusted net income follows a different trajectory than reported net income. It increases from 6,106,300 thousand USD in 2020 to a peak of 6,929,900 thousand USD in 2021. However, it declines sharply over the next two years, falling to 4,576,900 thousand USD in 2022 and further to 2,322,300 thousand USD in 2023. In 2024, adjusted net income recovers significantly to 7,951,600 thousand USD, though it remains below the 2021 peak.

Adjusted Total Assets

The adjusted total assets mirror the increasing trend observed in reported total assets but at lower values. From 43,793,800 thousand USD in 2020, the assets increase steadily each year, reaching 70,666,300 thousand USD in 2024. The rate of increase is particularly notable in the last two years, consistent with the reported total assets trend.

Adjusted Return on Assets (ROA)

Adjusted ROA shows a mixed pattern with an initial increase from 13.94% in 2020 to 14.97% in 2021, followed by a sharp decline to 9.8% in 2022 and a further drop to 3.97% in 2023. It partially recovers to 11.25% in 2024, though it does not reach the earlier peak levels. The decline in 2022 and 2023 suggests periods of reduced profitability relative to asset base when considering adjustments.

Summary of Trends and Insights

Overall, the company exhibits growth in its asset base, both reported and adjusted, throughout the period. Net income and adjusted net income show volatility, with sharp declines in 2023 followed by significant recoveries in 2024. The fluctuations in ROA, both reported and adjusted, reflect variability in profitability relative to assets, with noticeable declines in 2023 and partial rebounds in 2024. The divergence between adjusted and reported figures highlights the impact of adjustments on understanding profitability performance, especially during periods of decreased income and returns.