Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Eli Lilly & Co., profitability ratios
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).
The financial data reveals several important trends over the five-year period ending December 31, 2024. The company's profitability margins and returns exhibit notable fluctuations, with some measures improving in later years after periods of decline.
- Gross Profit Margin
- The gross profit margin demonstrates a generally positive trend, beginning at 77.66% in 2020, experiencing a dip to 74.18% in 2021, but then recovering and rising steadily to reach 81.31% by 2024. This indicates improved efficiency in core production or service delivery over the timeframe.
- Operating Profit Margin
- Operating profit margin shows greater volatility. Starting at 24.69% in 2020, it declined to 22.45% in 2021, rose slightly to 24.97% in 2022, then dipped significantly to 18.92% in 2023 before rebounding markedly to 28.64% in 2024. The drop in 2023 suggests a year of higher operating expenses or lower operating income, but the subsequent strong recovery points to improved operational management or cost control.
- Net Profit Margin
- Net profit margin follows a somewhat similar pattern to operating margin, starting at 25.24% in 2020, falling to 19.71% in 2021, and partially recovering to 21.88% in 2022. It then further declined to 15.36% in 2023, the lowest point in the period, but improved significantly to 23.51% in 2024. This pattern suggests that after a challenging period impacting bottom-line profitability, conditions improved considerably by the final year.
- Return on Equity (ROE)
- Return on equity declines persistently from a very high 109.79% in 2020 to 62.16% in 2021 and further down to 58.64% in 2022, continuing this downward trajectory to 48.65% in 2023. However, the trend reverses in 2024 with a substantial increase to 74.62%. The high initial ROE indicates strong profitability relative to shareholder equity, but the decline signals weakening returns over several years, potentially due to higher equity or reduced net income, before a recovery phase.
- Return on Assets (ROA)
- ROA shows a moderate decline trend from 13.28% in 2020 to 11.44% in 2021, followed by a slight recovery to 12.62% in 2022. However, it falls sharply to 8.19% in 2023, before rebounding to 13.45% in 2024, surpassing the initial level. This suggests variability in asset utilization efficiency and profitability, with a significant drop in 2023 indicating operational or asset-use challenges, followed by an improvement in 2024.
Return on Sales
Return on Investment
Gross Profit Margin
Eli Lilly & Co., gross profit margin 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) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, 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. | ||||||
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
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- Revenue displays a consistent upward trajectory over the five-year period. Starting with a value of approximately 24.54 billion US dollars at the end of 2020, revenue increases steadily each year, reaching about 45.04 billion US dollars by the end of 2024. This represents a substantial growth of over 83% within the given timeframe.
- Gross Margin Trend
- Gross margin also increases significantly from roughly 19.06 billion US dollars in 2020 to 36.62 billion US dollars by 2024. The growth in gross margin is particularly notable in the last two years, with a marked acceleration between 2022 and 2024.
- Gross Profit Margin Percentage
- The gross profit margin percentage fluctuates but maintains an overall upward trend throughout the period. It starts at 77.66% in 2020, dips slightly in 2021 to 74.18%, then recovers and improves steadily in subsequent years, reaching 81.31% by the end of 2024. This indicates improving efficiency in cost control relative to revenue generation.
- Overall Analysis
- The company's financial performance demonstrates strong growth and improving profitability metrics. The revenue increase aligns with a substantial improvement in gross margin, both in absolute and relative terms. The rising gross profit margin percentage suggests an enhancement in operational efficiency, potentially reflecting better cost management or pricing strategies. The pattern signals robust expansion combined with increasing profitability quality over the examined period.
Operating Profit Margin
Eli Lilly & Co., operating profit margin 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) | ||||||
| Operating income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, 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. | ||||||
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's performance over the five-year period ending December 31, 2024.
- Revenue
- There has been a consistent upward trajectory in revenue, increasing from approximately 24.5 billion US dollars in 2020 to 45.0 billion US dollars in 2024. This represents a substantial growth rate over the five years, with particularly strong jumps observed between 2022 and 2023, as well as 2023 and 2024.
- Operating Income
- The operating income generally follows an increasing trend, rising from about 6.1 billion US dollars in 2020 to nearly 12.9 billion US dollars in 2024. However, the growth is not uniform; there is a notable dip in 2023 when operating income declined to approximately 6.5 billion US dollars from a higher value of around 7.1 billion in 2022, before rebounding significantly in 2024 more than doubling the previous year's amount.
- Operating Profit Margin
- The operating profit margin fluctuates throughout the period. Starting at 24.69% in 2020, it dips to 22.45% in 2021, then recovers to 24.97% in 2022. There is a marked decline in 2023 to 18.92%, coinciding with the decrease in operating income despite revenue growth. In 2024, there is a strong recovery to 28.64%, which is the highest margin in the period, reflecting improved profitability despite the large increase in revenue.
Overall, the data indicates robust revenue growth with some volatility in operating income and profit margins. The significant drop in operating income and margin in 2023 suggests potential operational challenges or increased costs during that year, but the substantial recovery in 2024 highlights an effective response and improved operational efficiency or profitability.
Net Profit Margin
Eli Lilly & Co., net profit margin 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) | ||||||
| Net income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, 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 Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data indicates notable fluctuations across the analyzed years. Revenue has shown a steady increase overall, rising from approximately 24.5 billion US dollars in 2020 to over 45 billion US dollars in 2024. This represents a near doubling of revenue within the five-year period, with a particularly sharp increase observed between 2023 and 2024.
Net income displays a less consistent trend than revenue. After reaching about 6.19 billion US dollars in 2020, net income declined in 2021 to approximately 5.58 billion US dollars, then rebounded marginally in 2022 to 6.24 billion US dollars. However, a decrease occurred again in 2023, lowering net income to roughly 5.24 billion US dollars. The year 2024 shows a significant recovery, with net income soaring to nearly 10.59 billion US dollars, the highest value in the period analyzed.
Net profit margin, expressed as a percentage of revenue, has exhibited variability. Starting from 25.24% in 2020, it dropped to a low of 15.36% in 2023 before increasing again to 23.51% in 2024. The margin trajectory reflects the combined effects of revenue and net income changes, indicating fluctuating profitability efficiency over the years. The decline in profit margin during the middle years suggests either higher costs, pricing pressures, or other operational challenges that affect profitability despite rising revenues.
- Revenue Trend
- Consistent growth with an acceleration in the last reporting period, nearly doubling over five years.
- Net Income Pattern
- Variable with periods of decline and recovery, culminating in a substantial increase in the final year.
- Net Profit Margin Behavior
- Highly variable, with an initial decline followed by a partial recovery, indicating fluctuating profit efficiency relative to revenue.
- Overall Insight
- The company demonstrates strong top-line growth alongside volatile bottom-line performance and profitability ratios, suggesting ongoing efforts to manage costs or operational efficiencies to translate increased revenues into sustainable profits.
Return on Equity (ROE)
Eli Lilly & Co., ROE 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) | ||||||
| Net income | ||||||
| Total Eli Lilly and Company shareholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, 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. | ||||||
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROE, 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
ROE = 100 × Net income ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibited fluctuations over the five-year period. Starting at approximately 6.19 billion USD in 2020, it declined to around 5.58 billion USD in 2021. Subsequently, it increased to about 6.24 billion USD in 2022, before dropping again to 5.24 billion USD in 2023. Notably, there was a significant increase in 2024, with net income reaching approximately 10.59 billion USD, representing the highest value in the series.
- Total Shareholders’ Equity
- A consistent upward trend is observed in total shareholders’ equity across the examined years. The equity increased steadily from approximately 5.64 billion USD in 2020 to nearly 14.19 billion USD in 2024. This reflects continuous accumulation of equity, with the most substantial rise occurring between 2023 and 2024.
- Return on Equity (ROE)
- Return on equity showed a decreasing trend from 2020 to 2023. Beginning at a peak of 109.79% in 2020, ROE dropped significantly each year, reaching a low of 48.65% in 2023. However, in 2024, ROE rebounded to 74.62%, indicating improved efficiency in generating profit from shareholders' equity compared to the previous year, though it remains below the initial 2020 level.
- Overall Analysis
- The company experienced volatility in net income with peaks and troughs over the period, culminating in a substantial jump in 2024. Meanwhile, total shareholders’ equity demonstrated steady and robust growth, suggesting an expanding equity base. Despite the expanding equity and fluctuating net income, the return on equity declined substantially until 2023, implying that profitability relative to equity was diminishing during that interval. The reversal of this trend in 2024 signals improved profitability efficiency, albeit not reaching the exceptional levels seen in 2020.
Return on Assets (ROA)
Eli Lilly & Co., ROA 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) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, 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. | ||||||
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROA, 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
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals discernible trends in profitability, asset growth, and return efficiency over the five-year span.
- Net Income
- The net income exhibited fluctuations, starting at 6,193,700 thousand US dollars in 2020, decreasing to 5,581,700 thousand in 2021, recovering slightly to 6,244,800 thousand in 2022, then declining to 5,240,400 thousand in 2023, before experiencing substantial growth to 10,590,000 thousand in 2024. This pattern indicates volatility with a significant surge in the final year.
- Total Assets
- Total assets demonstrated a consistent upward trend throughout the period, rising from 46,633,100 thousand US dollars in 2020 to 78,714,900 thousand in 2024. The increase was particularly marked between 2022 and 2024, suggesting considerable asset accumulation and potential expansion activities.
- Return on Assets (ROA)
- The ROA percentage showed variability alongside net income and assets. After beginning at 13.28% in 2020, it declined to 11.44% in 2021, rebounded to 12.62% in 2022, dropped more noticeably to 8.19% in 2023, and then increased sharply to 13.45% in 2024. The decline in 2023 could indicate reduced efficiency or profitability relative to asset base, while the recovery in 2024 aligns with the surge in net income.
Overall, the data suggests an environment of fluctuating profitability and returns in the early years, followed by a period of accelerated asset growth and a pronounced improvement in profitability and asset utilization efficiency in the latest year reported. This may reflect strategic investments or operational improvements that yielded higher returns.