Eli Lilly & Co. (LLY)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

Eli Lilly & Co., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Turnover Ratios
Inventory turnover 1.96 1.56 1.57 1.56 1.36 1.36 1.34 1.32 1.40 1.59 1.44 1.44 1.38 1.46 1.43 1.50 1.65 1.80
Receivables turnover 5.70 4.68 5.00 4.95 5.19 5.03 5.11 5.06 5.37 5.27 5.41 5.22 5.57 5.68 5.79 5.86 6.23 6.06
Payables turnover 5.13 4.55 5.04 4.91 4.98 4.30 4.93 4.57 4.64 4.19 4.80 4.48 4.49 3.76 4.16 4.28 4.16 4.37
Working capital turnover 17.59 2.84 2.46 4.52 4.95 4.90 4.72 4.94 8.54 5.16 4.08 4.50 4.61 4.59 4.62 4.77 5.76 20.17
Average No. of Days
Average inventory processing period 186 233 233 235 268 268 272 276 260 230 254 253 264 250 255 243 222 203
Add: Average receivable collection period 64 78 73 74 70 73 71 72 68 69 67 70 66 64 63 62 59 60
Operating cycle 250 311 306 309 338 341 343 348 328 299 321 323 330 314 318 305 281 263
Less: Average payables payment period 71 80 72 74 73 85 74 80 79 87 76 81 81 97 88 85 88 83
Cash conversion cycle 179 231 234 235 265 256 269 268 249 212 245 242 249 217 230 220 193 180

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Eli Lilly & Co.’s inventory turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Eli Lilly & Co.’s receivables turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Eli Lilly & Co.’s payables turnover declined from Q3 2018 to Q4 2018 but then increased from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Eli Lilly & Co.’s working capital turnover improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Eli Lilly & Co.’s average receivable collection period deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Eli Lilly & Co.’s operating cycle deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Eli Lilly & Co.’s average payables payment period increased from Q3 2018 to Q4 2018 but then declined significantly from Q4 2018 to Q1 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Eli Lilly & Co.’s cash conversion cycle improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Inventory Turnover

Eli Lilly & Co., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Cost of sales 1,138,700  1,593,700  1,562,300  1,702,700  1,571,300  1,624,800  1,566,100  1,551,600  1,327,700  1,466,000  1,400,900  1,465,000  1,323,000  1,389,200  1,236,900  1,218,400  1,192,700  1,253,100  1,267,000  1,189,700  1,222,700 
Inventories 3,055,200  4,111,800  4,118,000  4,155,500  4,631,300  4,458,300  4,406,900  4,346,000  4,035,100  3,561,900  3,881,200  3,759,900  3,740,200  3,445,800  3,417,700  3,288,400  2,980,200  2,740,000  2,844,500  3,190,300  2,969,000 
Ratio
Inventory turnover1 1.96 1.56 1.57 1.56 1.36 1.36 1.34 1.32 1.40 1.59 1.44 1.44 1.38 1.46 1.43 1.50 1.65 1.80

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Inventory turnover = (Cost of salesQ1 2019 + Cost of salesQ4 2018 + Cost of salesQ3 2018 + Cost of salesQ2 2018) ÷ Inventories
= (1,138,700 + 1,593,700 + 1,562,300 + 1,702,700) ÷ 3,055,200 = 1.96

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Eli Lilly & Co.’s inventory turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Receivables Turnover

Eli Lilly & Co., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Revenue 5,092,200  6,438,600  6,061,900  6,355,200  5,700,000  6,160,700  5,658,000  5,824,300  5,228,300  5,760,500  5,191,700  5,404,800  4,865,100  5,375,600  4,959,700  4,978,700  4,644,700  5,121,300  4,875,600  4,935,600  4,683,100 
Accounts receivable, net of allowances 4,200,500  5,246,500  4,859,400  4,823,000  4,495,100  4,546,300  4,401,300  4,349,900  4,017,200  4,029,400  3,848,500  3,947,900  3,622,600  3,513,000  3,401,900  3,348,800  3,142,500  3,234,600  3,053,500  3,187,900  3,002,900 
Ratio
Receivables turnover1 5.70 4.68 5.00 4.95 5.19 5.03 5.11 5.06 5.37 5.27 5.41 5.22 5.57 5.68 5.79 5.86 6.23 6.06

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Receivables turnover = (RevenueQ1 2019 + RevenueQ4 2018 + RevenueQ3 2018 + RevenueQ2 2018) ÷ Accounts receivable, net of allowances
= (5,092,200 + 6,438,600 + 6,061,900 + 6,355,200) ÷ 4,200,500 = 5.70

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Eli Lilly & Co.’s receivables turnover deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Payables Turnover

Eli Lilly & Co., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Cost of sales 1,138,700  1,593,700  1,562,300  1,702,700  1,571,300  1,624,800  1,566,100  1,551,600  1,327,700  1,466,000  1,400,900  1,465,000  1,323,000  1,389,200  1,236,900  1,218,400  1,192,700  1,253,100  1,267,000  1,189,700  1,222,700 
Accounts payable 1,168,100  1,412,300  1,281,200  1,316,900  1,267,400  1,410,700  1,200,100  1,257,200  1,220,100  1,349,300  1,161,200  1,207,800  1,151,600  1,338,200  1,179,300  1,153,000  1,179,600  1,128,100  1,023,300  1,124,600  1,149,900 
Ratio
Payables turnover1 5.13 4.55 5.04 4.91 4.98 4.30 4.93 4.57 4.64 4.19 4.80 4.48 4.49 3.76 4.16 4.28 4.16 4.37

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Payables turnover = (Cost of salesQ1 2019 + Cost of salesQ4 2018 + Cost of salesQ3 2018 + Cost of salesQ2 2018) ÷ Accounts payable
= (1,138,700 + 1,593,700 + 1,562,300 + 1,702,700) ÷ 1,168,100 = 5.13

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Eli Lilly & Co.’s payables turnover declined from Q3 2018 to Q4 2018 but then increased from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Working Capital Turnover

Eli Lilly & Co., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Current assets 12,597,500  20,549,600  20,685,900  18,332,700  16,261,500  19,202,100  17,428,400  15,746,500  12,976,200  15,101,400  13,385,900  12,977,300  11,714,600  12,573,600  12,567,000  12,346,000  11,742,700  12,179,800  12,110,500  13,156,700  13,039,300 
Less: Current liabilities 11,236,100  11,888,100  10,826,700  13,055,200  11,547,000  14,535,900  12,666,500  11,294,500  10,448,000  10,986,600  8,272,800  8,401,000  7,340,900  8,229,600  8,303,300  8,232,000  8,342,900  11,207,500  7,574,600  7,417,400  6,631,700 
Working capital 1,361,400  8,661,500  9,859,200  5,277,500  4,714,500  4,666,200  4,761,900  4,452,000  2,528,200  4,114,800  5,113,100  4,576,300  4,373,700  4,344,000  4,263,700  4,114,000  3,399,800  972,300  4,535,900  5,739,300  6,407,600 
Revenue 5,092,200  6,438,600  6,061,900  6,355,200  5,700,000  6,160,700  5,658,000  5,824,300  5,228,300  5,760,500  5,191,700  5,404,800  4,865,100  5,375,600  4,959,700  4,978,700  4,644,700  5,121,300  4,875,600  4,935,600  4,683,100 
Ratio
Working capital turnover1 17.59 2.84 2.46 4.52 4.95 4.90 4.72 4.94 8.54 5.16 4.08 4.50 4.61 4.59 4.62 4.77 5.76 20.17

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Working capital turnover = (RevenueQ1 2019 + RevenueQ4 2018 + RevenueQ3 2018 + RevenueQ2 2018) ÷ Working capital
= (5,092,200 + 6,438,600 + 6,061,900 + 6,355,200) ÷ 1,361,400 = 17.59

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Eli Lilly & Co.’s working capital turnover improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.

Average Inventory Processing Period

Eli Lilly & Co., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Inventory turnover 1.96 1.56 1.57 1.56 1.36 1.36 1.34 1.32 1.40 1.59 1.44 1.44 1.38 1.46 1.43 1.50 1.65 1.80
Ratio (no. of days)
Average inventory processing period1 186 233 233 235 268 268 272 276 260 230 254 253 264 250 255 243 222 203

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.96 = 186

Ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Eli Lilly & Co., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Receivables turnover 5.70 4.68 5.00 4.95 5.19 5.03 5.11 5.06 5.37 5.27 5.41 5.22 5.57 5.68 5.79 5.86 6.23 6.06
Ratio (no. of days)
Average receivable collection period1 64 78 73 74 70 73 71 72 68 69 67 70 66 64 63 62 59 60

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.70 = 64

Ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Eli Lilly & Co.’s average receivable collection period deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Operating Cycle

Eli Lilly & Co., operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 186 233 233 235 268 268 272 276 260 230 254 253 264 250 255 243 222 203
Average receivable collection period 64 78 73 74 70 73 71 72 68 69 67 70 66 64 63 62 59 60
Ratio
Operating cycle1 250 311 306 309 338 341 343 348 328 299 321 323 330 314 318 305 281 263

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 186 + 64 = 250

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Eli Lilly & Co.’s operating cycle deteriorated from Q3 2018 to Q4 2018 but then improved from Q4 2018 to Q1 2019 exceeding Q3 2018 level.

Average Payables Payment Period

Eli Lilly & Co., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Payables turnover 5.13 4.55 5.04 4.91 4.98 4.30 4.93 4.57 4.64 4.19 4.80 4.48 4.49 3.76 4.16 4.28 4.16 4.37
Ratio (no. of days)
Average payables payment period1 71 80 72 74 73 85 74 80 79 87 76 81 81 97 88 85 88 83

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.13 = 71

Ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Eli Lilly & Co.’s average payables payment period increased from Q3 2018 to Q4 2018 but then declined significantly from Q4 2018 to Q1 2019.

Cash Conversion Cycle

Eli Lilly & Co., cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 186 233 233 235 268 268 272 276 260 230 254 253 264 250 255 243 222 203
Average receivable collection period 64 78 73 74 70 73 71 72 68 69 67 70 66 64 63 62 59 60
Average payables payment period 71 80 72 74 73 85 74 80 79 87 76 81 81 97 88 85 88 83
Ratio
Cash conversion cycle1 179 231 234 235 265 256 269 268 249 212 245 242 249 217 230 220 193 180

Based on: 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-19), 10-Q (filing date: 2018-11-06), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-20), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-05-01), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-30), 10-Q (filing date: 2015-04-30), 10-K (filing date: 2015-02-19), 10-Q (filing date: 2014-10-29), 10-Q (filing date: 2014-07-28), 10-Q (filing date: 2014-04-28).

Q1 2019 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 186 + 6471 = 179

Ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Eli Lilly & Co.’s cash conversion cycle improved from Q3 2018 to Q4 2018 and from Q4 2018 to Q1 2019.