Eli Lilly & Co. (LLY)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Eli Lilly & Co., long-term (investment) activity ratios

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net fixed asset turnover	2.75	2.59	2.57	2.48	2.46
Total asset turnover	0.56	0.51	0.55	0.56	0.53
Equity turnover	2.50	1.97	1.52	1.37	1.28

Long-term activity ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Eli Lilly & Co.’s net fixed asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Eli Lilly & Co.’s total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Equity turnover	An activity ratio calculated as total revenue divided by shareholders’ equity.	Eli Lilly & Co.’s equity turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Eli Lilly & Co., net fixed asset turnover calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in thousands)
Revenue	24,555,700	22,871,300	21,222,100	19,958,700	19,615,600
Property and equipment, net	8,919,500	8,826,500	8,252,600	8,053,500	7,963,900
Long-term Activity Ratio
Net fixed asset turnover¹	2.75	2.59	2.57	2.48	2.46
Benchmarks
Net Fixed Asset Turnover, Competitors²
Abbott Laboratories	4.04	3.60	3.66	3.56	3.41
AbbVie Inc.	11.36	10.07	9.85	8.91	8.03
Allergan PLC	8.83	8.93	9.04	9.58	8.19
Amgen Inc.	4.54	4.37	4.41	4.27	3.70
Biogen Inc.	3.74	3.86	4.58	4.92	5.50
Bristol-Myers Squibb Co.	4.49	4.15	3.90	3.75	3.59
Gilead Sciences Inc.	5.41	7.79	10.45	14.13	14.62
Johnson & Johnson	4.79	4.50	4.52	4.41	4.61
Merck & Co. Inc.	3.18	3.23	3.31	3.16	3.22
Pfizer Inc.	4.01	3.79	3.97	3.55	4.22
Regeneron Pharmaceuticals Inc.	2.61	2.49	2.33	2.57	2.89
Vertex Pharmaceuticals Inc.	3.75	3.15	2.44	1.48	0.81
Zoetis Inc.	3.51	3.70	3.54	3.65	3.63
Net Fixed Asset Turnover, Sector
Pharmaceuticals & Biotechnology	4.31	4.19	4.32	4.22	—
Net Fixed Asset Turnover, Industry
Health Care	6.08	5.88	6.08	5.70	—

¹ 2018 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 24,555,700 ÷ 8,919,500 = 2.75

² Click competitor name to see calculations.

Long-term activity ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Eli Lilly & Co.’s net fixed asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Eli Lilly & Co., total asset turnover calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in thousands)
Revenue	24,555,700	22,871,300	21,222,100	19,958,700	19,615,600
Total assets	43,908,400	44,981,000	38,805,900	35,568,900	37,178,200
Long-term Activity Ratio
Total asset turnover¹	0.56	0.51	0.55	0.56	0.53
Benchmarks
Total Asset Turnover, Competitors²
Abbott Laboratories	0.46	0.36	0.40	0.49	0.49
AbbVie Inc.	0.55	0.40	0.39	0.43	0.72
Allergan PLC	0.16	0.13	0.11	0.11	0.25
Amgen Inc.	0.34	0.27	0.28	0.29	0.28
Biogen Inc.	0.53	0.52	0.50	0.55	0.68
Bristol-Myers Squibb Co.	0.64	0.62	0.58	0.52	0.47
Gilead Sciences Inc.	0.34	0.37	0.53	0.62	0.71
Johnson & Johnson	0.53	0.49	0.51	0.53	0.57
Merck & Co. Inc.	0.51	0.46	0.42	0.39	0.43
Pfizer Inc.	0.34	0.31	0.31	0.29	0.29
Regeneron Pharmaceuticals Inc.	0.57	0.67	0.70	0.73	0.73
Vertex Pharmaceuticals Inc.	0.49	0.70	0.59	0.41	0.25
Zoetis Inc.	0.54	0.62	0.64	0.60	0.72
Total Asset Turnover, Sector
Pharmaceuticals & Biotechnology	0.43	0.37	0.38	0.38	—
Total Asset Turnover, Industry
Health Care	0.54	0.48	0.49	0.47	—

¹ 2018 Calculation
Total asset turnover = Revenue ÷ Total assets
= 24,555,700 ÷ 43,908,400 = 0.56

² Click competitor name to see calculations.

Long-term activity ratio	Description	The company
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Eli Lilly & Co.’s total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Eli Lilly & Co., equity turnover calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in thousands)
Revenue	24,555,700	22,871,300	21,222,100	19,958,700	19,615,600
Total Eli Lilly and Company shareholders’ equity	9,828,700	11,592,200	14,007,700	14,571,300	15,373,200
Long-term Activity Ratio
Equity turnover¹	2.50	1.97	1.52	1.37	1.28
Benchmarks
Equity Turnover, Competitors²
Abbott Laboratories	1.00	0.89	1.02	0.96	0.94
AbbVie Inc.	—	5.54	5.53	5.79	11.46
Allergan PLC	0.24	0.22	0.19	0.20	0.46
Amgen Inc.	1.80	0.86	0.73	0.75	0.75
Biogen Inc.	1.03	0.97	0.94	1.15	0.90
Bristol-Myers Squibb Co.	1.61	1.77	1.20	1.16	1.07
Gilead Sciences Inc.	1.01	1.26	1.59	1.73	1.59
Johnson & Johnson	1.37	1.27	1.02	0.98	1.07
Merck & Co. Inc.	1.58	1.17	0.99	0.88	0.87
Pfizer Inc.	0.85	0.74	0.89	0.75	0.70
Regeneron Pharmaceuticals Inc.	0.77	0.96	1.09	1.12	1.11
Vertex Pharmaceuticals Inc.	0.69	1.23	1.47	1.10	0.54
Zoetis Inc.	2.67	3.00	3.29	4.46	3.65
Equity Turnover, Sector
Pharmaceuticals & Biotechnology	1.17	0.97	0.92	0.88	—
Equity Turnover, Industry
Health Care	1.39	1.23	1.19	1.09	—

¹ 2018 Calculation
Equity turnover = Revenue ÷ Total Eli Lilly and Company shareholders’ equity
= 24,555,700 ÷ 9,828,700 = 2.50

² Click competitor name to see calculations.

Long-term activity ratio	Description	The company
Equity turnover	An activity ratio calculated as total revenue divided by shareholders’ equity.	Eli Lilly & Co.’s equity turnover ratio improved from 2016 to 2017 and from 2017 to 2018.