Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Eli Lilly & Co., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibited an initial increase from 2.83 in 2020 to 3.15 in 2021, indicating improved efficiency in generating revenue from fixed assets. However, this trend reversed in subsequent years, declining to 2.81 in 2022, then further decreasing steadily to 2.64 in 2023 and 2.63 in 2024. This suggests a deterioration in the utilization of fixed assets over the later periods.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- When including operating leases and right-of-use assets, the ratio similarly showed an increase from 2.63 in 2020 to 2.93 in 2021, followed by declines to 2.63 in 2022 and 2.45 in 2023. A minor recovery to 2.48 was observed in 2024. This pattern largely mirrors the net fixed asset turnover trend, albeit with a slight uptick in the last period, indicating some improvement in asset utilization related to leased assets.
- Total asset turnover
- The total asset turnover ratio rose from 0.53 in 2020 to 0.58 in 2021 and remained stable at 0.58 in 2022, implying better overall asset efficiency. Nevertheless, a decline back to 0.53 occurred in 2023 before a partial rebound to 0.57 in 2024. The fluctuations signal some variability in how effectively total assets are used to generate sales.
- Equity turnover
- Equity turnover demonstrated a steady decline from 4.35 in 2020 to 3.15 in 2021, continuing to decrease further to 2.68 in 2022. Subsequently, it reversed direction, recovering to 3.17 in both 2023 and 2024. The initial drop reflects reduced efficiency in using equity to generate revenue, while the resurgence in later years suggests an improvement in equity utilization.
Net Fixed Asset Turnover
Eli Lilly & Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue has shown a consistent upward trend over the five-year period. Starting at approximately $24.54 billion in 2020, revenue increased to around $28.32 billion in 2021, with a slight flattening in 2022 at $28.54 billion. Thereafter, the growth accelerated markedly, reaching $34.12 billion in 2023 and then a significant rise to $45.04 billion in 2024. This indicates a strong expansion in sales or services rendered over the analyzed period, with the most substantial growth occurring in the latter two years.
- Property and Equipment, Net
- The net value of property and equipment exhibited a steady increase throughout the timeframe. Beginning at $8.68 billion in 2020, it rose modestly to $8.99 billion in 2021, followed by more pronounced increases each subsequent year: $10.14 billion in 2022, $12.91 billion in 2023, and sharply to $17.10 billion in 2024. This suggests ongoing capital investment and asset accumulation, likely supporting operational expansion or modernization efforts.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, showed a declining trend. It started at 2.83 in 2020 and increased slightly to 3.15 in 2021. However, from 2022 onwards, the ratio decreased progressively to 2.81, then 2.64 in 2023, and 2.63 in 2024. This decline reflects that the growth in fixed assets has outpaced revenue growth in recent years, potentially indicating reduced efficiency in asset utilization or a strategic decision to invest ahead of demand growth.
- Summary Insights
- The company experienced strong revenue growth especially after 2022, supported by significant capital investments in property and equipment. However, the diminishing net fixed asset turnover ratio suggests that these investments are not yet fully translating into proportional revenue increases, which may imply a temporary lag in operational efficiency or a deliberate growth strategy focused on long-term capacity building. Monitoring future periods will be essential to assess whether asset utilization improves as these investments mature.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Eli Lilly & Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets (presented in Other noncurrent assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue demonstrated a consistent upward trajectory over the five-year period. Beginning at approximately 24.54 billion USD in 2020, revenue increased to roughly 28.32 billion USD in 2021, marking a notable growth. This was followed by a slight increase to 28.54 billion USD in 2022. Subsequently, the company observed a more substantial rise in revenue in 2023, reaching 34.12 billion USD, and an even more pronounced increase in 2024, peaking at 45.04 billion USD. This pattern reflects a strong acceleration in revenue growth, particularly in the last two years.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, exhibited a steady increase throughout the period. Starting at approximately 9.35 billion USD in 2020, this figure rose moderately to 9.67 billion USD in 2021 and then to 10.87 billion USD in 2022. The upward trend intensified in 2023 with a rise to 13.94 billion USD, and a significant jump was recorded in 2024 to 18.15 billion USD. This escalation indicates considerable investment in fixed assets and lease rights over these years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of the company's use of its fixed assets to generate revenue, showed some variability during the timeframe. It improved from 2.63 in 2020 to 2.93 in 2021, indicating increased efficiency that year. However, it then declined to 2.63 in 2022 and continued a downward trend to 2.45 in 2023. There was a slight recovery in 2024, with the ratio rising marginally to 2.48. The overall pattern suggests that while the company expanded its asset base significantly, the proportional increase in revenue relative to assets did not consistently keep pace, especially in the mid to later years.
- Summary of Financial Position and Performance Trends
- The company experienced robust revenue growth over the five years, particularly accelerating in the final two years. Concurrently, it increased investments in property and equipment substantially, which is evidenced by the rising net asset values. Despite these investments and growing revenue, efficiency in generating revenue from fixed assets showed fluctuations and a general slight decline after peaking in 2021, although it partially recovered in 2024. This indicates that while asset expansion supported increased revenue, the rate of output per unit of asset lowered somewhat during the middle years, suggesting potential areas for operational efficiency improvements moving forward.
Total Asset Turnover
Eli Lilly & Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a steady upward trajectory over the five-year period. Starting at approximately $24.54 billion in 2020, revenue increased noticeably each year, reaching around $28.32 billion in 2021 and slightly more to $28.54 billion in 2022. A more pronounced growth occurred afterward, with revenue rising to $34.12 billion in 2023 and accelerating to $45.04 billion by the end of 2024. This pattern indicates consistent and substantial revenue growth, particularly in the last two years.
- Total Assets Trends
- Total assets also increased consistently over the period analyzed. From approximately $46.63 billion in 2020, total assets grew moderately to $48.81 billion in 2021 and slightly further to $49.49 billion in 2022. A significant increase occurred thereafter, with total assets reaching $64.01 billion in 2023 and further expanding to $78.71 billion in 2024. The growth rate of total assets appears to accelerate in the latter part of the period, reflecting either asset acquisitions, investments, or capital expansion.
- Total Asset Turnover Ratio
- The total asset turnover ratio remained relatively stable across the five years, fluctuating within a narrow range. It started at 0.53 in 2020, increased to 0.58 in both 2021 and 2022, then slightly declined back to 0.53 in 2023, followed by a modest increase to 0.57 in 2024. These values suggest that the efficiency in using assets to generate revenue maintained a consistent level, with minor variations and no evidence of a significant trend either upward or downward.
- Summary Insights
- The data reflect robust revenue growth alongside expanding total assets, especially pronounced in the most recent years. Despite the increase in asset base, the asset turnover ratio has stayed relatively steady, implying that the company's revenue generation capabilities have scaled proportionately with its asset growth. This balance suggests maintained operational efficiency amid expansion, highlighting successful management in leveraging additional assets to sustain revenue increases.
Equity Turnover
Eli Lilly & Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total Eli Lilly and Company shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Revenue ÷ Total Eli Lilly and Company shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue shows a consistent and significant upward trend over the five-year period. It increased from approximately $24.54 billion in 2020 to around $45.04 billion in 2024, reflecting strong growth. The growth rate appears to accelerate notably from 2022 to 2024, with a particularly sharp rise between 2023 and 2024.
- Total Shareholders’ Equity
- The total shareholders’ equity also exhibits a steady increase from about $5.64 billion in 2020 to approximately $14.19 billion in 2024. The most significant growth occurred between 2020 and 2021, and the equity continues to increase year over year, though at a somewhat slower pace after 2021.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of using shareholders' equity to generate revenue, shows a declining trend from 4.35 in 2020 to a low of 2.68 in 2022. After 2022, the ratio stabilizes around 3.17 through 2023 and 2024. This suggests that while revenue has increased, shareholders' equity has grown at a faster pace, leading to reduced turnover ratios, indicating a moderate decrease in equity utilization efficiency.
- Overall Analysis
- There is a clear growth in both revenue and shareholders’ equity over these years, indicating expansion and strengthening of the financial base. However, the declining equity turnover ratio suggests that the increase in equity is outpacing revenue growth, which might point to a more capital-intensive stage or retained earnings contributing to equity expansion. The stabilization of the equity turnover ratio in the last two years may signal the beginning of a balance between equity growth and revenue generation efficiency.