Stock Analysis on Net
Stock Analysis on Net

Eli Lilly & Co. (NYSE:LLY)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Eli Lilly & Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 48.65% = 8.19% × 5.94
Sep 30, 2023 44.46% = 8.61% × 5.16
Jun 30, 2023 58.73% = 11.85% × 4.95
Mar 31, 2023 50.82% = 10.70% × 4.75
Dec 31, 2022 58.64% = 12.62% × 4.65
Sep 30, 2022 59.91% = 12.71% × 4.71
Jun 30, 2022 66.61% = 12.09% × 5.51
Mar 31, 2022 65.69% = 13.06% × 5.03
Dec 31, 2021 62.16% = 11.44% × 5.44
Sep 30, 2021 76.99% = 12.39% × 6.21
Jun 30, 2021 94.20% = 12.70% × 7.42
Mar 31, 2021 88.31% = 13.01% × 6.79
Dec 31, 2020 109.79% = 13.28% × 8.27
Sep 30, 2020 115.45% = 12.68% × 9.10
Jun 30, 2020 137.26% = 13.39% × 10.25
Mar 31, 2020 179.72% = 13.46% × 13.35
Dec 31, 2019 319.09% = 21.17% × 15.07
Sep 30, 2019 — = — × 11.20
Jun 30, 2019 — = — × 13.91
Mar 31, 2019 — = — × 15.32

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Eli Lilly & Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 48.65% = 15.36% × 0.53 × 5.94
Sep 30, 2023 44.46% = 15.55% × 0.55 × 5.16
Jun 30, 2023 58.73% = 22.01% × 0.54 × 4.95
Mar 31, 2023 50.82% = 20.54% × 0.52 × 4.75
Dec 31, 2022 58.64% = 21.88% × 0.58 × 4.65
Sep 30, 2022 59.91% = 20.63% × 0.62 × 4.71
Jun 30, 2022 66.61% = 19.58% × 0.62 × 5.51
Mar 31, 2022 65.69% = 20.90% × 0.62 × 5.03
Dec 31, 2021 62.16% = 19.71% × 0.58 × 5.44
Sep 30, 2021 76.99% = 21.52% × 0.58 × 6.21
Jun 30, 2021 94.20% = 22.71% × 0.56 × 7.42
Mar 31, 2021 88.31% = 23.91% × 0.54 × 6.79
Dec 31, 2020 109.79% = 25.24% × 0.53 × 8.27
Sep 30, 2020 115.45% = 24.01% × 0.53 × 9.10
Jun 30, 2020 137.26% = 24.48% × 0.55 × 10.25
Mar 31, 2020 179.72% = 23.97% × 0.56 × 13.35
Dec 31, 2019 319.09% = 37.27% × 0.57 × 15.07
Sep 30, 2019 — = — × — × 11.20
Jun 30, 2019 — = — × — × 13.91
Mar 31, 2019 — = — × — × 15.32

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Eli Lilly & Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.19% = 15.36% × 0.53
Sep 30, 2023 8.61% = 15.55% × 0.55
Jun 30, 2023 11.85% = 22.01% × 0.54
Mar 31, 2023 10.70% = 20.54% × 0.52
Dec 31, 2022 12.62% = 21.88% × 0.58
Sep 30, 2022 12.71% = 20.63% × 0.62
Jun 30, 2022 12.09% = 19.58% × 0.62
Mar 31, 2022 13.06% = 20.90% × 0.62
Dec 31, 2021 11.44% = 19.71% × 0.58
Sep 30, 2021 12.39% = 21.52% × 0.58
Jun 30, 2021 12.70% = 22.71% × 0.56
Mar 31, 2021 13.01% = 23.91% × 0.54
Dec 31, 2020 13.28% = 25.24% × 0.53
Sep 30, 2020 12.68% = 24.01% × 0.53
Jun 30, 2020 13.39% = 24.48% × 0.55
Mar 31, 2020 13.46% = 23.97% × 0.56
Dec 31, 2019 21.17% = 37.27% × 0.57
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in asset turnover ratio.