Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Return on Equity (ROE) 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
- Analysis of Debt
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Profitability Ratios (Summary)
Eli Lilly & Co., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a generally positive trajectory over the five-year period, though with some fluctuations. Significant improvements are evident in several key areas, particularly towards the later years of the observed timeframe. Initial stability is followed by a period of volatility before culminating in substantial gains.
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trend, increasing from 74.18% in 2021 to 83.04% in 2025. This suggests improving efficiency in production or sourcing, or a shift towards higher-margin products. The increases are relatively steady year-over-year.
- Operating Profit Margin
- The operating profit margin shows more variability. It increased from 22.45% in 2021 to 24.97% in 2022, then decreased to 18.92% in 2023. A substantial recovery is then observed, rising to 28.64% in 2024 and further to 40.35% in 2025. This indicates potential fluctuations in operating expenses or a significant improvement in operational efficiency in the later years.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin experiences a dip in 2023, falling to 15.36% from 21.88% in 2022. However, it demonstrates a strong rebound, reaching 23.51% in 2024 and 31.67% in 2025. This suggests that improvements in operational efficiency and/or effective tax management contributed to the increased profitability.
- Return on Equity (ROE)
- Return on equity decreased from 62.16% in 2021 to 48.65% in 2023, mirroring the decline observed in other profit margins. A significant increase is then noted, with ROE reaching 74.62% in 2024 and 77.78% in 2025. This indicates a more effective utilization of shareholder equity to generate profits in the latter part of the period.
- Return on Assets (ROA)
- Return on assets follows a similar pattern to ROE and the profit margins. It decreased from 11.44% in 2021 to 8.19% in 2023, before increasing to 13.45% in 2024 and 18.35% in 2025. This suggests improved efficiency in utilizing assets to generate earnings, particularly in the most recent years.
Overall, the observed trends suggest a period of initial strength, followed by a temporary setback in 2023, and a subsequent period of substantial improvement in profitability and efficiency across all measured ratios. The increases in margins and returns from 2024 to 2025 are particularly noteworthy.
Return on Sales
Return on Investment
Gross Profit Margin
Eli Lilly & Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin demonstrates a consistent upward trend over the five-year period. Simultaneously, both gross margin in US dollars and revenue experienced increases, indicating strong overall performance.
- Gross Profit Margin Trend
- The gross profit margin increased steadily from 74.18% in 2021 to 83.04% in 2025. This represents a cumulative increase of 8.86 percentage points over the period. The rate of increase appears to be accelerating, with larger year-over-year gains observed in later years.
- Gross Margin (US$ in millions) Trend
- Gross margin in US dollars increased from $21,006 million in 2021 to $54,127 million in 2025. This substantial growth suggests a significant expansion in the company’s ability to generate profit from its core operations. The increase from 2023 to 2024 ($9,582 million) and from 2024 to 2025 ($17,503 million) are particularly noteworthy.
- Revenue Trend
- Revenue also exhibited consistent growth, rising from $28,318 million in 2021 to $65,179 million in 2025. This growth in revenue, coupled with the increasing gross profit margin, indicates effective cost management and/or pricing strategies.
The consistent improvement in the gross profit margin, alongside increasing revenue and gross margin, suggests a strengthening of the company’s competitive position and operational efficiency. The accelerating trend in both gross profit margin and gross margin warrants further investigation to understand the underlying drivers of this performance.
Operating Profit Margin
Eli Lilly & Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a fluctuating trend over the five-year period. Initial increases were followed by a decline and then a substantial rise, indicating evolving operational efficiency and profitability.
- Operating Profit Margin - Overall Trend
- The operating profit margin began at 22.45% in 2021, increasing to 24.97% in 2022. A subsequent decrease was observed in 2023, with the margin falling to 18.92%. However, a significant upward trend commenced in 2024, reaching 28.64%, and continued strongly into 2025, culminating in a margin of 40.35%.
- Operating Profit Margin - 2021-2023
- From 2021 to 2023, the operating profit margin demonstrated initial growth followed by contraction. The increase from 2021 to 2022 suggests improved cost management or pricing strategies. The decline in 2023, despite revenue growth, indicates potential increases in operating expenses or a less favorable sales mix.
- Operating Profit Margin - 2024-2025
- The period from 2024 to 2025 is characterized by a dramatic improvement in the operating profit margin. This substantial increase, from 28.64% to 40.35%, coincides with significant growth in both operating income and revenue. This suggests successful implementation of strategies to enhance profitability, potentially through economies of scale, improved operational efficiency, or a shift towards higher-margin products.
- Relationship to Revenue and Operating Income
- The operating profit margin’s movements are closely linked to changes in both revenue and operating income. While revenue increased consistently over the period, the operating income experienced a dip in 2023 before exhibiting substantial growth in 2024 and 2025. The strong correlation between operating income growth and margin expansion in the latter years suggests that increases in revenue are translating effectively into higher profits.
Net Profit Margin
Eli Lilly & Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited considerable fluctuation over the five-year period. Initial increases were followed by a decline and then a substantial upward surge.
- Net Profit Margin - Overall Trend
- The net profit margin began at 19.71% in 2021, increasing to a peak of 21.88% in 2022. A subsequent decrease was observed in 2023, with the margin falling to 15.36%. This was followed by a significant recovery, reaching 23.51% in 2024, and accelerating to 31.67% in 2025. This represents a substantial overall increase in profitability over the period.
- Net Income and Revenue Relationship
- The increases in net profit margin in 2024 and 2025 correlate with significant growth in both net income and revenue. While net income increased steadily from 2021 to 2022, the decline in 2023 coincided with a decrease in net profit margin, despite revenue increasing. The substantial increases in both metrics from 2023 to 2025 suggest improved operational efficiency or pricing power.
- Year-over-Year Changes
- From 2021 to 2022, the net profit margin increased by 2.17 percentage points. The largest single-year decrease occurred between 2022 and 2023, with a drop of 6.52 percentage points. Conversely, the most significant increase occurred between 2023 and 2024, with a gain of 8.15 percentage points. The increase from 2024 to 2025 was also substantial, adding 8.16 percentage points to the margin.
The observed trends suggest a period of initial stability, followed by a temporary setback, and then a period of strong and accelerating profitability improvement. The relationship between revenue and net income indicates that revenue growth alone does not fully explain the changes in net profit margin; other factors likely contributed to the observed fluctuations.
Return on Equity (ROE)
Eli Lilly & Co., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) demonstrates a fluctuating pattern over the five-year period. Initial values are strong, followed by a decline, and then a significant resurgence. Net income and total shareholders’ equity both contribute to these observed changes.
- Overall Trend
- The ROE began at 62.16% in 2021, decreased to 48.65% in 2023, and then increased substantially to 77.78% by 2025. This indicates improving profitability relative to shareholder investment in the latter years of the period.
- Net Income Influence
- Net income experienced a moderate increase from US$5,582 million in 2021 to US$6,245 million in 2022. A subsequent decrease to US$5,240 million in 2023 likely contributed to the decline in ROE observed that year. However, net income then rose dramatically, reaching US$10,590 million in 2024 and US$20,640 million in 2025, driving the significant increases in ROE during those periods.
- Shareholders’ Equity Influence
- Total shareholders’ equity also generally increased throughout the period, moving from US$8,979 million in 2021 to US$26,535 million in 2025. While equity growth is generally positive, the rate of equity increase was not always sufficient to offset changes in net income. For example, the ROE decline in 2023 occurred despite a slight increase in equity, suggesting net income was the primary driver of the change.
- ROE Volatility
- The ROE exhibited considerable volatility, particularly between 2023 and 2025. This suggests that the company’s profitability is sensitive to changes in either net income or shareholder equity, or both. The substantial increase in ROE in the final two years indicates a period of particularly strong performance relative to the capital invested by shareholders.
In summary, the ROE trend reflects a period of initial strength, a temporary setback, and a subsequent period of substantial improvement, largely driven by significant growth in net income.
Return on Assets (ROA)
Eli Lilly & Co., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a fluctuating pattern over the five-year period. Initial increases were followed by a decline and then a substantial upward trajectory. Net income and total assets both increased over the period, influencing the ROA calculations.
- Overall Trend
- The ROA generally increased from 2021 to 2025, although not consistently. A peak was reached in 2025, significantly higher than the ROA in 2021.
- 2021-2022
- From 2021 to 2022, the ROA increased from 11.44% to 12.62%. This increase coincided with growth in both net income and total assets, with net income experiencing a larger percentage increase than total assets. This suggests improved efficiency in generating profit from the asset base.
- 2022-2023
- A notable decrease in ROA occurred between 2022 and 2023, falling to 8.19%. While net income decreased, total assets increased substantially. The larger increase in total assets, relative to the decline in net income, resulted in a lower ROA, indicating reduced profitability relative to the asset base.
- 2023-2025
- The ROA experienced significant growth from 2023 to 2025. In 2024, the ROA rose to 13.45%, and further increased to 18.35% in 2025. This substantial improvement was driven by a considerable increase in net income, exceeding the growth rate of total assets. This indicates a significant improvement in the company’s ability to generate earnings from its assets.
- Net Income and Total Assets Relationship
- The relationship between net income and total assets is a key driver of the ROA fluctuations. Periods of higher net income growth relative to asset growth resulted in increased ROA, while the opposite relationship led to decreased ROA. The substantial growth in net income in 2024 and 2025, coupled with continued asset growth, resulted in the highest ROA observed during the period.