Analysis of Liquidity Ratios

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Eli Lilly & Co., liquidity ratios

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Current ratio	1.40	1.16	1.73	1.32	1.37
Quick ratio	0.85	0.68	1.20	0.91	0.98
Cash ratio	0.29	0.21	0.68	0.55	0.55

Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Eli Lilly & Co.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Eli Lilly & Co.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Eli Lilly & Co.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Eli Lilly & Co., current ratio calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in thousands)
Current assets	17,462,100	13,709,600	20,549,600	19,202,100	15,101,400
Current liabilities	12,481,600	11,775,200	11,888,100	14,535,900	10,986,600
Liquidity Ratio
Current ratio¹	1.40	1.16	1.73	1.32	1.37
Benchmarks
Current Ratio, Competitors²
Abbott Laboratories	1.72	1.44	1.62	2.26	4.02
AbbVie Inc.	0.84	3.18	0.98	1.28	1.65
Amgen Inc.	1.81	1.44	2.79	5.49	4.11
Bristol-Myers Squibb Co.	1.58	1.60	1.61	1.55	1.55
Gilead Sciences Inc.	—	3.10	3.38	2.74	2.22
Illumina Inc.	3.60	6.69	2.49	3.99	3.29
Johnson & Johnson	1.21	1.26	1.47	1.41	2.47
Merck & Co. Inc.	—	1.24	1.17	1.33	1.78
Pfizer Inc.	—	0.88	1.57	1.35	1.25
Regeneron Pharmaceuticals Inc.	3.63	3.67	4.47	3.82	2.56
Vertex Pharmaceuticals Inc.	4.33	3.61	3.43	3.28	2.31
Zoetis Inc.	3.05	2.63	3.60	3.85	3.03
Current Ratio, Sector
Pharmaceuticals & Biotechnology	—	1.57	1.73	1.82	2.10
Current Ratio, Industry
Health Care	—	1.49	1.52	1.61	1.75

¹ 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 17,462,100 ÷ 12,481,600 = 1.40

² Click competitor name to see calculations.

Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Eli Lilly & Co.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Eli Lilly & Co., quick ratio calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in thousands)
Cash and cash equivalents	3,657,100	2,337,500	7,998,200	6,536,200	4,582,100
Short-term investments	24,200	101,000	88,200	1,497,900	1,456,500
Accounts receivable, net of allowances	5,875,300	4,547,300	5,246,500	4,546,300	4,029,400
Other receivables	1,053,700	994,200	958,400	715,900	736,900
Total quick assets	10,610,300	7,980,000	14,291,300	13,296,300	10,804,900

Current liabilities	12,481,600	11,775,200	11,888,100	14,535,900	10,986,600
Liquidity Ratio
Quick ratio¹	0.85	0.68	1.20	0.91	0.98
Benchmarks
Quick Ratio, Competitors²
Abbott Laboratories	1.14	0.88	1.03	1.67	3.31
AbbVie Inc.	0.60	2.91	0.78	0.89	1.14
Amgen Inc.	1.30	1.01	2.44	4.98	3.68
Bristol-Myers Squibb Co.	1.28	1.26	1.37	1.30	1.27
Gilead Sciences Inc.	—	2.86	3.15	2.52	1.78
Illumina Inc.	3.18	6.00	2.23	3.43	2.75
Johnson & Johnson	0.91	0.94	1.08	1.04	2.04
Merck & Co. Inc.	—	0.78	0.72	0.83	1.24
Pfizer Inc.	—	0.50	0.84	0.93	0.84
Regeneron Pharmaceuticals Inc.	2.86	2.81	3.50	2.98	2.13
Vertex Pharmaceuticals Inc.	4.02	3.33	3.19	2.94	2.06
Zoetis Inc.	2.13	1.67	2.24	2.34	1.47
Quick Ratio, Sector
Pharmaceuticals & Biotechnology	—	1.18	1.28	1.41	1.64
Quick Ratio, Industry
Health Care	—	1.13	1.12	1.24	1.35

¹ 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,610,300 ÷ 12,481,600 = 0.85

² Click competitor name to see calculations.

Liquidity ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Eli Lilly & Co.’s quick ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Eli Lilly & Co., cash ratio calculation, comparison to benchmarks

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in thousands)
Cash and cash equivalents	3,657,100	2,337,500	7,998,200	6,536,200	4,582,100
Short-term investments	24,200	101,000	88,200	1,497,900	1,456,500
Total cash assets	3,681,300	2,438,500	8,086,400	8,034,100	6,038,600

Current liabilities	12,481,600	11,775,200	11,888,100	14,535,900	10,986,600
Liquidity Ratio
Cash ratio¹	0.29	0.21	0.68	0.55	0.55
Benchmarks
Cash Ratio, Competitors²
Abbott Laboratories	0.60	0.38	0.45	1.08	2.82
AbbVie Inc.	0.30	2.56	0.47	0.59	0.66
Amgen Inc.	0.91	0.69	2.17	4.62	3.40
Bristol-Myers Squibb Co.	0.83	0.84	0.83	0.71	0.72
Gilead Sciences Inc.	—	2.50	2.84	2.19	1.29
Illumina Inc.	2.79	5.13	1.95	2.88	2.21
Johnson & Johnson	0.59	0.54	0.63	0.60	1.59
Merck & Co. Inc.	—	0.47	0.40	0.46	0.83
Pfizer Inc.	—	0.26	0.59	0.66	0.57
Regeneron Pharmaceuticals Inc.	1.33	1.53	1.95	1.24	0.84
Vertex Pharmaceuticals Inc.	3.55	2.85	2.83	2.59	1.81
Zoetis Inc.	1.66	1.07	1.39	1.43	0.65
Cash Ratio, Sector
Pharmaceuticals & Biotechnology	—	0.81	0.90	1.01	1.23
Cash Ratio, Industry
Health Care	—	0.73	0.72	0.85	0.94

¹ 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,681,300 ÷ 12,481,600 = 0.29

² Click competitor name to see calculations.

Liquidity ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Eli Lilly & Co.’s cash ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Eli Lilly & Co. (NYSE:LLY)