Eli Lilly & Co. (LLY)

Liquidity Analysis

Difficulty: Beginner

Annual Data

Quarterly Data

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

Eli Lilly & Co., liquidity ratios

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Current ratio	1.32	1.37	1.53	1.09	1.47
Quick ratio	0.91	0.98	1.04	0.77	1.06
Cash ratio	0.55	0.55	0.54	0.43	0.61

Source: Based on data from Eli Lilly & Co. Annual Reports

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 2015 to 2016 and from 2016 to 2017.
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 2015 to 2016 and from 2016 to 2017.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Eli Lilly & Co.'s cash ratio improved from 2015 to 2016 and from 2016 to 2017.

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

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Current assets	19,202,100	15,101,400	12,573,600	12,179,800	13,104,700
Current liabilities	14,535,900	10,986,600	8,229,600	11,207,500	8,916,600
Ratio
Current ratio¹	1.32	1.37	1.53	1.09	1.47
Benchmarks
Current Ratio, Competitors
Abbott Laboratories	2.26	4.02	1.54	1.45	2.02
AbbVie Inc.	1.28	1.65	1.50	1.41	2.59
Allergan PLC	1.16	2.27	1.03	1.37	1.35
Amgen Inc.	5.49	4.11	4.44	4.95	3.44
Biogen Inc.	2.34	2.55	2.60	2.11	1.81
Bristol-Myers Squibb Co.	1.55	1.55	1.30	1.73	1.52
Celgene Corp.	4.99	3.67	4.77	4.60	3.88
Gilead Sciences Inc.	2.74	2.22	2.50	3.07	1.15
Johnson & Johnson	1.41	2.47	2.17	2.36	2.20
Merck & Co. Inc.	1.33	1.78	1.55	1.77	2.00
Pfizer Inc.	1.35	1.25	1.49	2.67	2.41
Regeneron Pharmaceuticals Inc.	3.82	2.56	3.59	3.31	6.01
Current Ratio, Sector
Pharmaceuticals & Biotechnology	1.82	2.14	1.92	2.19	2.13
Current Ratio, Industry
Health Care	1.52	1.75	1.65	1.84	1.89

Source: Based on data from Eli Lilly & Co. Annual Reports

2017 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 19,202,100 ÷ 14,535,900 = 1.32

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 2015 to 2016 and from 2016 to 2017.

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

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Cash and cash equivalents	6,536,200	4,582,100	3,666,400	3,871,600	3,830,200
Short-term investments	1,497,900	1,456,500	785,400	955,400	1,567,100
Accounts receivable, net of allowances	4,546,300	4,029,400	3,513,000	3,234,600	3,434,400
Other receivables	715,900	736,900	558,600	566,700	588,400
Total quick assets	13,296,300	10,804,900	8,523,400	8,628,300	9,420,100
Current liabilities	14,535,900	10,986,600	8,229,600	11,207,500	8,916,600
Ratio
Quick ratio¹	0.91	0.98	1.04	0.77	1.06
Benchmarks
Quick Ratio, Competitors
Abbott Laboratories	1.67	3.31	1.04	0.76	1.27
AbbVie Inc.	0.89	1.14	1.21	1.06	2.00
Allergan PLC	0.95	2.00	0.42	0.52	0.53
Amgen Inc.	4.98	3.68	3.97	4.22	2.78
Biogen Inc.	1.78	1.94	1.93	1.54	1.31
Bristol-Myers Squibb Co.	1.30	1.27	1.05	1.26	0.61
Celgene Corp.	4.67	3.24	4.05	4.13	3.47
Gilead Sciences Inc.	2.52	1.78	2.07	2.56	0.67
Johnson & Johnson	1.04	2.04	1.77	1.76	1.59
Merck & Co. Inc.	0.83	1.24	1.04	1.19	1.38
Pfizer Inc.	0.93	0.84	1.07	2.07	1.79
Regeneron Pharmaceuticals Inc.	2.98	2.13	3.10	2.93	5.52
Quick Ratio, Sector
Pharmaceuticals & Biotechnology	1.42	1.69	1.48	1.63	1.50
Quick Ratio, Industry
Health Care	1.18	1.38	1.28	1.38	1.35

Source: Based on data from Eli Lilly & Co. Annual Reports

2017 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 13,296,300 ÷ 14,535,900 = 0.91

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 2015 to 2016 and from 2016 to 2017.

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

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Cash and cash equivalents	6,536,200	4,582,100	3,666,400	3,871,600	3,830,200
Short-term investments	1,497,900	1,456,500	785,400	955,400	1,567,100
Total cash assets	8,034,100	6,038,600	4,451,800	4,827,000	5,397,300
Current liabilities	14,535,900	10,986,600	8,229,600	11,207,500	8,916,600
Ratio
Cash ratio¹	0.55	0.55	0.54	0.43	0.61
Benchmarks
Cash Ratio, Competitors
Abbott Laboratories	1.08	2.82	0.67	0.42	0.85
AbbVie Inc.	0.59	0.66	0.77	0.73	1.44
Allergan PLC	0.65	1.68	0.13	0.05	0.10
Amgen Inc.	4.62	3.40	3.62	3.86	2.44
Biogen Inc.	1.10	1.43	1.33	0.83	0.70
Bristol-Myers Squibb Co.	0.71	0.72	0.53	0.88	0.36
Celgene Corp.	4.03	2.69	3.33	3.57	2.92
Gilead Sciences Inc.	2.19	1.29	1.48	1.76	0.34
Johnson & Johnson	0.60	1.59	1.38	1.32	1.14
Merck & Co. Inc.	0.46	0.83	0.70	0.84	0.98
Pfizer Inc.	0.66	0.57	0.79	1.67	1.39
Regeneron Pharmaceuticals Inc.	1.24	0.84	1.29	1.38	2.32
Cash Ratio, Sector
Pharmaceuticals & Biotechnology	1.03	1.29	1.08	1.21	1.08
Cash Ratio, Industry
Health Care	0.80	0.97	0.89	0.98	0.95

Source: Based on data from Eli Lilly & Co. Annual Reports

2017 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 8,034,100 ÷ 14,535,900 = 0.55

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 improved from 2015 to 2016 and from 2016 to 2017.