Stock Analysis on Net

Eli Lilly & Co. (NYSE:LLY)

Analysis of Short-term (Operating) Activity Ratios 
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Turnover Ratios
Inventory turnover 0.96 1.11 1.05 1.16 1.17 1.23 1.40 1.37 1.36 1.54 1.86 1.79 1.93 1.88 1.79 1.80 1.68 1.38
Receivables turnover 4.07 4.09 3.97 3.53 4.56 3.75 3.93 3.93 3.68 4.14 4.35 4.57 4.64 4.24 4.69 4.58 4.56 4.18
Payables turnover 2.61 2.61 2.70 2.56 2.88 2.73 2.81 2.65 3.07 3.43 4.24 4.21 5.24 4.38 4.46 4.30 3.75 3.41
Working capital turnover 4.38 10.32 6.06 12.62 5.45 31.79 12.21 5.77 31.84 14.71 19.45 8.19 8.33 6.73 12.14 5.21 4.93
Average No. Days
Average inventory processing period 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Add: Average receivable collection period 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Operating cycle 469 418 441 419 392 395 354 360 367 325 280 284 268 280 282 283 297 352
Less: Average payables payment period 140 140 135 142 127 134 130 138 119 106 86 87 70 83 82 85 97 107
Cash conversion cycle 329 278 306 277 265 261 224 222 248 219 194 197 198 197 200 198 200 245

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).


Inventory Turnover
The inventory turnover ratio demonstrates a general declining trend after peaking in early 2022. It increased from 1.38 in March 2020 to a high near 1.93 by mid-2022, indicating a faster inventory movement during that period. From mid-2022 onwards, the ratio declined steadily to 0.96 by March 2025, suggesting slower inventory turnover and potential buildup of stock.
Receivables Turnover
Receivables turnover showed fluctuations but overall mild volatility. It improved from 4.18 in early 2020 to peaks around 4.69 by late 2020, then oscillated between approximately 3.5 and 4.6 through the following years. The ratio slightly declined toward the end of the dataset, ending near 4.07 in March 2025, indicating some variability in the efficiency of receivables collection.
Payables Turnover
This ratio initially increased significantly from 3.41 to a peak of 5.24 in mid-2021, indicating quicker payment to suppliers. However, it declined gradually afterward, stabilizing between 2.5 and 2.9 from mid-2023 onward. This pattern suggests a shift toward longer payment periods or slower payable processing in the more recent periods.
Working Capital Turnover
The working capital turnover exhibited high volatility. It increased dramatically at several points, notably reaching very high values such as 31.84 and 31.79 in late 2022 and late 2023, respectively. These spikes may reflect short-term changes in sales relative to working capital or unusual working capital management practices. However, there are gaps and inconsistencies in the data, with some missing values. Toward the end of the timeline, turnover ratios appear variable but generally lower than during peak spikes.
Average Inventory Processing Period
The days inventory outstanding showed a generally rising trend after reaching a low around 189 days in mid-2021. From this point, the processing period lengthened steadily, culminating at around 379 days by March 2025. This indicates increasing inventory holding periods and possibly slower inventory turnover rates over time.
Average Receivable Collection Period
The average receivable collection period fluctuated within a range of approximately 78 to 103 days. It initially improved toward lower values in 2020, but then increased gradually, ending near 90 days in early 2025. This pattern suggests a modest extension in the time required to collect receivables over the period analyzed.
Operating Cycle
The operating cycle lengthened consistently over the period, rising from approximately 280 days in early 2021 to 469 days by March 2025. This extension is driven by the combined effects of increasing inventory days and longer receivables collection periods, indicating an overall slower conversion of resources into cash.
Average Payables Payment Period
The average payables payment period decreased from 107 days in early 2020 to a low near 70 days in mid-2021, suggesting faster payments to suppliers during this interval. Subsequently, it lengthened steadily, reaching around 140 days by early 2025. This reflects a tendency to extend payment terms or delay payments in later periods.
Cash Conversion Cycle
The cash conversion cycle remained relatively stable around 200 days initially but demonstrated a rising trend beginning in 2022. It increased from approximately 194 days in late 2021 to a peak around 329 days by March 2025. This lengthening cycle indicates lower liquidity efficiency, reflecting slower recovery of cash tied up in inventory and receivables after accounting for payables.

Turnover Ratios


Average No. Days


Inventory Turnover

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of sales 2,224,200 2,403,800 2,170,800 2,170,200 1,673,500 1,788,000 1,860,100 1,807,400 1,626,700 1,548,100 1,579,100 1,430,500 2,072,100 2,050,200 1,430,800 1,953,200 1,878,600 1,719,800 1,326,400 1,222,000 1,215,100
Inventories 9,311,000 7,589,200 7,459,800 6,481,500 6,101,800 5,772,800 4,901,400 4,798,700 4,544,800 4,309,700 3,831,100 3,899,400 3,893,000 3,886,000 3,907,400 3,824,900 3,660,800 3,980,300 3,555,400 3,313,900 3,102,400
Short-term Activity Ratio
Inventory turnover1 0.96 1.11 1.05 1.16 1.17 1.23 1.40 1.37 1.36 1.54 1.86 1.79 1.93 1.88 1.79 1.80 1.68 1.38
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 3.71 4.04 4.09 4.86 4.83 4.98 4.74 4.30 4.53 4.87 5.54 4.99 4.96 5.58 5.76 5.45 5.40 4.65
Amgen Inc. 1.88 1.84 1.75 1.42 1.14 0.89 1.41 1.38 1.31 1.30 1.34 1.40 1.48 1.58 1.53 1.53 1.53 1.58
Bristol-Myers Squibb Co. 5.28 5.46 3.57 3.72 3.70 4.02 4.33 4.39 3.93 4.33 4.77 4.59 4.55 4.74 4.85 5.01 5.61 5.68
Danaher Corp. 3.79 4.15 3.60 3.59 3.73 3.80 3.53 3.58 3.50 4.03 3.80 3.71 3.87 4.16 4.06 4.28 4.34 4.28
Gilead Sciences Inc. 3.55 3.66 3.62 3.33 3.59 3.64 3.49 3.45 3.57 3.75 4.71 4.50 4.50 4.08 3.21 2.99 2.79 2.72
Johnson & Johnson 2.24 2.21 2.15 2.20 2.32 2.37 2.46 2.23 2.36 2.49 2.68 2.69 2.77 2.87 2.86 2.91 2.86 3.04
Merck & Co. Inc. 2.43 2.49 2.45 2.39 2.42 2.54 2.63 2.66 2.72 2.95 3.10 3.06 2.74 2.29 2.73 2.79 2.40 2.45
Pfizer Inc. 1.60 1.65 1.66 2.05 2.15 2.45 2.65 2.31 3.07 3.82 3.62 3.66 3.67 3.40 2.78 1.80 1.28 1.08
Regeneron Pharmaceuticals Inc. 0.63 0.64 0.64 0.65 0.66 0.70 0.72 0.69 0.67 0.65 0.83 0.96 1.27 1.25 0.88 0.82 0.56 0.58
Thermo Fisher Scientific Inc. 4.82 5.06 4.62 4.83 4.93 5.06 4.83 4.64 4.62 4.60 4.29 4.03 3.87 3.88 3.90 4.03 4.01 4.02
Vertex Pharmaceuticals Inc. 1.14 1.27 1.37 1.53 1.65 1.71 1.71 1.90 2.06 2.35 2.69 2.70 2.83 2.56 2.58 2.52 2.56 2.62

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Inventory turnover = (Cost of salesQ1 2025 + Cost of salesQ4 2024 + Cost of salesQ3 2024 + Cost of salesQ2 2024) ÷ Inventories
= (2,224,200 + 2,403,800 + 2,170,800 + 2,170,200) ÷ 9,311,000 = 0.96

2 Click competitor name to see calculations.


The quarterly financial data reveal distinct trends in cost of sales, inventories, and inventory turnover ratios over the observed periods. The analysis highlights fluctuations and directional movements which carry implications for operational efficiency and inventory management.

Cost of Sales
The cost of sales exhibits substantial variability over the quarters. It starts at approximately $1.22 billion in March 2020, rising to a peak of about $2.05 billion by December 2021. Following a slight dip in mid-2022, it again escalates, reaching over $2.4 billion in December 2024 before slightly declining to around $2.22 billion in March 2025. This upward trend overall suggests increased production or procurement costs, or higher sales volume, with some cyclical fluctuations.
Inventories
Inventory levels show a generally increasing trajectory from about $3.1 billion in March 2020 to over $9.3 billion by March 2025. The inventory accumulation is particularly noticeable from mid-2022 onward, with a steep rise through late 2024 and into early 2025. This steady build-up may indicate anticipation of increased sales demand, adjustments in supply chain management, or potential overstocking risks.
Inventory Turnover Ratio
The inventory turnover ratio, available from the first quarter of 2020 onwards, illustrates a declining trend after peaking at 1.93 in June 2022. Initially, the ratio improved from around 1.38 in March 2020 to almost 1.93 mid-2022, reflecting increasingly efficient inventory use or stronger sales relative to inventory. However, from mid-2022, the ratio consistently decreases, falling below 1.0 by March 2025. A declining inventory turnover ratio amidst rising inventory values suggests slower inventory movement, potentially indicating challenges in converting inventory into sales or stock buildup exceeding demand.

In summary, the data reflect rising cost of sales and inventory levels concurrently with a declining inventory turnover ratio in the later periods. This combination points to increasing costs and inventory holding alongside reduced efficiency in inventory utilization, warranting further examination of sales performance, supply chain dynamics, and inventory management strategies to optimize operational balance.


Receivables Turnover

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Revenue 12,728,500 13,532,800 11,439,100 11,302,800 8,768,000 9,353,400 9,498,600 8,312,100 6,960,000 7,301,800 6,941,600 6,488,000 7,810,000 7,999,900 6,772,800 6,740,100 6,805,600 7,440,000 5,740,600 5,499,400 5,859,800
Accounts receivable, net of allowances 12,036,600 11,005,700 10,294,800 11,027,900 7,885,600 9,090,500 8,167,100 7,516,100 7,526,200 6,896,000 6,715,300 6,364,500 6,322,500 6,672,800 5,914,300 5,829,400 5,592,800 5,875,300 4,886,700 4,828,900 5,106,100
Short-term Activity Ratio
Receivables turnover1 4.07 4.09 3.97 3.53 4.56 3.75 3.93 3.93 3.68 4.14 4.35 4.57 4.64 4.24 4.69 4.58 4.56 4.18
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 4.60 5.16 4.84 4.69 4.55 4.87 4.83 4.88 4.95 5.16 5.38 5.10 5.29 5.63 5.94 5.42 5.24 5.19
Amgen Inc. 4.03 4.72 4.26 4.26 4.16 3.70 4.17 4.34 4.34 4.46 4.60 4.62 4.81 4.96 5.11 5.39 5.41 5.36
Danaher Corp. 6.79 6.75 6.77 7.15 7.02 6.09 6.15 6.64 6.89 6.40 7.09 6.81 6.87 6.36 6.69 6.51 6.28 5.51
Gilead Sciences Inc. 6.51 6.47 6.14 5.92 5.84 5.78 5.68 6.43 6.43 5.65 6.16 6.60 7.18 6.01 5.95 6.34 6.43 4.98
Johnson & Johnson 5.58 5.98 5.42 5.48 5.73 5.73 5.91 5.36 5.65 5.88 6.04 5.92 6.08 6.14 6.13 6.00 5.64 6.08
Merck & Co. Inc. 5.92 6.24 5.55 5.37 5.40 5.81 5.71 5.29 5.56 6.27 6.22 5.93 5.49 5.28 5.56 6.00 5.65 6.11
Pfizer Inc. 5.27 5.55 4.18 4.93 5.09 5.33 6.25 7.66 7.57 9.16 6.21 6.68 6.99 7.08 5.81 5.23 4.70 5.28
Regeneron Pharmaceuticals Inc. 2.53 2.29 2.27 2.36 2.51 2.31 2.35 2.47 2.42 2.28 2.47 2.76 3.41 2.66 2.48 1.77 2.20 2.07
Thermo Fisher Scientific Inc. 5.07 5.23 5.13 5.33 5.36 5.21 5.19 5.43 5.53 5.53 5.76 5.53 5.21 4.92 7.03 6.99 6.46 5.61
Vertex Pharmaceuticals Inc. 6.15 6.85 6.07 6.24 5.68 6.31 6.27 6.11 5.95 6.19 6.28 6.26 6.15 6.66 6.48 7.19 6.56 7.01

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Receivables turnover = (RevenueQ1 2025 + RevenueQ4 2024 + RevenueQ3 2024 + RevenueQ2 2024) ÷ Accounts receivable, net of allowances
= (12,728,500 + 13,532,800 + 11,439,100 + 11,302,800) ÷ 12,036,600 = 4.07

2 Click competitor name to see calculations.


The revenue data exhibits a generally upward trend from March 31, 2020, to March 31, 2025, with fluctuations across quarters. Initial revenue was approximately $5.86 billion in the first quarter of 2020, with a notable peak in the fourth quarter of 2020 reaching around $7.44 billion. Subsequent quarters show variability, with revenue dipping below $6.5 billion around mid-2022 but recovering afterward, culminating in strong results above $12 billion by the first quarter of 2025. This indicates overall growth despite intermittent declines.

Accounts receivable, net of allowances, display a somewhat correlated pattern with revenue but with less pronounced volatility. Beginning near $5.1 billion in early 2020, receivables rose steadily, reaching approximately $7.67 billion by the fourth quarter of 2021. Following a slight contraction in early 2022, they increased again, culminating at around $12 billion by the first quarter of 2025. This trend suggests increasing credit sales or collections timing changes consistent with revenue growth.

The receivables turnover ratio ranges generally between 3.5 and 4.7 times per period, indicating the frequency at which accounts receivable are collected during the year. Higher turnover ratios around late 2020 and early 2021 suggest an efficient collection process during that time. However, a decline in turnover ratios is observed around mid-2023 to early 2024, dropping to around 3.5–3.9, which could imply slower collections or longer credit terms despite rising revenues and receivables. The turnover ratio improves again toward the end of the data period, indicating some recovery in collection efficiency.

Overall, the data indicates strong revenue growth over the five-year period with accompanying increases in accounts receivable, consistent with expanding sales. The fluctuations in receivables turnover ratio point to varying collection efficiency that warrants monitoring to ensure cash flow stability during growth phases.


Payables Turnover

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of sales 2,224,200 2,403,800 2,170,800 2,170,200 1,673,500 1,788,000 1,860,100 1,807,400 1,626,700 1,548,100 1,579,100 1,430,500 2,072,100 2,050,200 1,430,800 1,953,200 1,878,600 1,719,800 1,326,400 1,222,000 1,215,100
Accounts payable 3,442,000 3,228,600 2,886,500 2,924,800 2,473,700 2,598,800 2,435,100 2,474,200 2,015,900 1,930,600 1,683,200 1,659,300 1,433,300 1,670,600 1,566,800 1,597,800 1,639,600 1,606,700 1,430,100 1,247,200 1,207,700
Short-term Activity Ratio
Payables turnover1 2.61 2.61 2.70 2.56 2.88 2.73 2.81 2.65 3.07 3.43 4.24 4.21 5.24 4.38 4.46 4.30 3.75 3.41
Benchmarks
Payables Turnover, Competitors2
Amgen Inc. 5.25 6.74 5.99 5.01 6.10 5.32 5.22 5.67 4.97 4.08 5.30 5.09 4.65 4.72 5.41 4.92 4.40 4.33
Bristol-Myers Squibb Co. 3.52 3.88 3.43 3.05 3.12 3.28 3.75 3.38 3.20 3.33 3.82 3.41 3.25 3.37 3.89 2.97 3.69 4.34
Danaher Corp. 5.57 5.52 6.04 5.84 5.88 5.58 5.63 5.82 5.68 5.45 5.61 5.00 5.04 4.48 5.20 5.54 5.29 4.79
Gilead Sciences Inc. 8.47 7.50 7.49 12.57 10.69 11.81 9.90 9.06 8.99 6.25 11.22 11.89 11.43 9.36 9.18 8.70 8.71 5.42
Johnson & Johnson 2.97 2.66 3.03 3.03 3.23 2.76 3.29 2.75 3.05 2.66 3.08 3.15 3.26 2.70 3.32 3.38 3.34 2.99
Merck & Co. Inc. 3.98 3.72 4.26 4.39 4.48 4.11 4.59 4.58 4.34 4.08 5.16 4.86 4.25 2.96 4.54 3.93 3.81 3.37
Pfizer Inc. 3.30 3.17 3.67 4.60 4.19 3.72 5.07 3.92 4.78 5.04 5.49 6.17 6.66 5.53 5.11 3.72 2.68 2.02
Regeneron Pharmaceuticals Inc. 2.84 2.50 3.87 3.32 2.67 2.99 3.43 3.14 2.69 2.65 3.74 4.00 5.39 4.32 4.23 3.42 2.23 2.36
Thermo Fisher Scientific Inc. 8.25 8.18 9.63 9.85 9.91 8.97 10.41 10.82 9.35 7.67 9.93 8.84 7.96 6.83 8.31 8.88 8.12 7.45
Vertex Pharmaceuticals Inc. 3.49 3.71 3.73 4.27 3.81 3.46 3.13 3.16 3.41 3.55 8.23 5.01 5.52 4.64 6.73 6.35 5.99 4.75

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Payables turnover = (Cost of salesQ1 2025 + Cost of salesQ4 2024 + Cost of salesQ3 2024 + Cost of salesQ2 2024) ÷ Accounts payable
= (2,224,200 + 2,403,800 + 2,170,800 + 2,170,200) ÷ 3,442,000 = 2.61

2 Click competitor name to see calculations.


The data reveals notable fluctuations and trends in cost of sales, accounts payable, and the payables turnover ratio over the analyzed periods.

Cost of sales

The cost of sales increased significantly from the beginning of the period in March 2020, rising from approximately $1.22 billion to a peak around $2.41 billion by the end of 2024. There are intermittent fluctuations throughout, including pronounced cyclical rises and dips within certain quarters. A notable uptick occurred towards the end of 2024, where the cost rose sharply compared to earlier quarters of the same year.

Accounts payable

Accounts payable also exhibited an upward trend throughout the full time frame. Starting near $1.21 billion in early 2020, the payables increased steadily with some fluctuations, eventually exceeding $3.44 billion by March 2025. This growth mirrors the increase in cost of sales but with a more distinct steady rise, including substantial jumps in the mid-to-late 2023 and continuing strongly into 2024.

Payables turnover ratio

This ratio, which measures how quickly the company settles its accounts payable, showed a dynamic pattern. Early data points in 2020 are missing, but starting from September 2020, the ratio initially increased, peaking around 4.46 at the end of 2020 and maintaining elevated levels into mid-2021. However, from late 2021 onward, the turnover ratio declined steadily, reaching values near 2.61 by the end of the data period. This decline indicates slowing payment of payables relative to purchases or cost of sales, potentially implying longer payment terms or a strategic shift in working capital management.

Overall, the company shows a consistent growth in both cost of sales and accounts payable, signifying increased business volume or higher input costs. The decreasing payables turnover ratio in the latter periods suggests a lengthening of payment cycles or adjusted supplier payment terms, which could impact cash flow and working capital dynamics. This comprehensive pattern underlines the need for continued monitoring of payment practices and their implications on liquidity management.


Working Capital Turnover

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Current assets 41,261,200 32,739,700 31,415,100 30,204,300 25,188,800 25,727,000 23,007,000 21,331,600 20,811,400 18,034,500 17,639,900 17,115,200 16,964,700 18,452,400 17,808,300 17,295,500 16,604,500 17,462,100 16,239,900 14,581,900 13,994,200
Less: Current liabilities 30,068,100 28,376,600 24,674,100 27,121,200 18,598,100 27,293,200 21,998,200 18,915,000 16,010,000 17,138,200 15,652,800 15,620,600 13,386,000 15,052,700 13,682,000 15,093,200 11,714,200 12,481,600 11,976,900 11,988,500 12,610,200
Working capital 11,193,100 4,363,100 6,741,000 3,083,100 6,590,700 (1,566,200) 1,008,800 2,416,600 4,801,400 896,300 1,987,100 1,494,600 3,578,700 3,399,700 4,126,300 2,202,300 4,890,300 4,980,500 4,263,000 2,593,400 1,384,000
 
Revenue 12,728,500 13,532,800 11,439,100 11,302,800 8,768,000 9,353,400 9,498,600 8,312,100 6,960,000 7,301,800 6,941,600 6,488,000 7,810,000 7,999,900 6,772,800 6,740,100 6,805,600 7,440,000 5,740,600 5,499,400 5,859,800
Short-term Activity Ratio
Working capital turnover1 4.38 10.32 6.06 12.62 5.45 31.79 12.21 5.77 31.84 14.71 19.45 8.19 8.33 6.73 12.14 5.21 4.93
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 130.12
Amgen Inc. 8.36 5.40 4.83 5.19 3.39 2.25 0.81 0.84 0.82 3.82 2.52 3.67 4.34 3.37 2.55 5.35 2.84 2.55
Bristol-Myers Squibb Co. 6.87 7.79 8.49 12.50 15.56 4.60 10.47 5.53 5.55 8.30 5.75 4.92 6.24 3.95 4.43 4.24 4.25 3.72
Danaher Corp. 8.27 8.85 8.73 8.10 3.60 4.22 2.18 3.08 3.81 4.20 5.00 5.43 5.91 8.40 7.98 3.12 3.45 3.48
Gilead Sciences Inc. 6.27 3.99 9.22 17.98 26.58 5.61 6.74 84.15 9.14 8.42 8.56 6.87 6.68 8.54 7.25 7.09 7.06 5.30
Johnson & Johnson 6.10 15.94 58.86 22.29 10.35 11.81 9.37 14.06 23.02 4.88 5.02 5.57 5.95 5.97 5.93 7.26 9.44
Merck & Co. Inc. 6.19 6.19 5.86 5.14 9.68 9.29 6.69 8.86 5.63 5.16 5.58 6.39 6.09 7.62 6.51 6.97 84.97 109.83
Pfizer Inc. 6.64 8.64 5,036.00 29.17 1.62 2.03 6.89 11.00 3.83 5.05 6.10 4.78 4.29 4.21 3.60 4.58
Regeneron Pharmaceuticals Inc. 1.01 0.97 0.88 0.87 0.86 0.82 0.87 0.92 0.90 0.96 1.09 1.14 1.46 1.59 1.35 1.29 1.35 1.20
Thermo Fisher Scientific Inc. 4.20 4.87 4.61 3.96 4.38 4.05 4.86 7.40 10.13 5.46 5.40 6.03 6.13 5.87 2.30 3.10 3.36 2.76
Vertex Pharmaceuticals Inc. 1.78 1.83 1.82 1.92 1.07 0.93 0.87 0.90 0.93 0.85 0.90 0.93 0.97 1.02 1.03 1.01 0.97 0.99

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Working capital turnover = (RevenueQ1 2025 + RevenueQ4 2024 + RevenueQ3 2024 + RevenueQ2 2024) ÷ Working capital
= (12,728,500 + 13,532,800 + 11,439,100 + 11,302,800) ÷ 11,193,100 = 4.38

2 Click competitor name to see calculations.


Working Capital
The working capital values exhibit notable fluctuations over the observed periods. Starting at approximately 1.38 billion USD in the first quarter of 2020, there is a sharp increase reaching a peak near 5 billion USD by the end of 2020. Subsequently, a significant decline occurs in early 2021, followed by a series of rises and falls throughout 2021 and 2022. Notably, a pronounced decline is visible in the final quarter of 2023, turning negative at approximately -1.57 billion USD. However, from early 2024 onwards, working capital recovers sharply again, reaching a high of around 11.19 billion USD by the first quarter of 2025. This volatility indicates large swings in current assets and liabilities management in multiple quarters.
Revenue
Revenue shows a general upward trend over the entire period. It starts around 5.86 billion USD in the first quarter of 2020 and experiences some volatility, temporarily dipping in some periods such as mid-2020 and mid-2022. Despite these fluctuations, revenue increases substantially in 2023 and 2024, peaking at approximately 13.53 billion USD by the end of 2024. The increasing revenue trend suggests steady growth in sales or service income.
Working Capital Turnover
Working capital turnover ratios, available from the end of 2020 onwards, exhibit considerable volatility quarter to quarter. The ratios range widely from a low around 4.38 up to extremely high values such as 31.84 and 31.79, indicating periods of highly efficient use of working capital to generate revenue followed by periods of less efficiency. The highest turnover ratios appear in the early quarters of 2022 and late 2023, corresponding to quarters when working capital was relatively low or negative, which mathematically inflates the turnover ratio. Generally, the working capital turnover does not show a consistent trend but fluctuates significantly.
Summary of Trends and Insights
Overall, the financial data reveal significant volatility in working capital paired with a strong, generally upward revenue trend. The sharp fluctuations in working capital, including negative levels at one point, reflect variable management or operational conditions affecting current assets and liabilities. The increasing revenue indicates improved sales performance or expansion over time. The highly variable working capital turnover ratios reflect the sensitivity of this metric to changes in working capital levels, especially when the denominator approaches low or negative values, impacting interpretability of operational efficiency. Stakeholders may consider monitoring working capital management practices closely to reduce volatility and better align it with stable revenue growth.

Average Inventory Processing Period

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Inventory turnover 0.96 1.11 1.05 1.16 1.17 1.23 1.40 1.37 1.36 1.54 1.86 1.79 1.93 1.88 1.79 1.80 1.68 1.38
Short-term Activity Ratio (no. days)
Average inventory processing period1 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 98 90 89 75 75 73 77 85 81 75 66 73 74 65 63 67 68 79
Amgen Inc. 195 199 209 257 321 411 259 265 279 281 272 260 247 231 239 239 239 231
Bristol-Myers Squibb Co. 69 67 102 98 99 91 84 83 93 84 76 79 80 77 75 73 65 64
Danaher Corp. 96 88 101 102 98 96 104 102 104 91 96 98 94 88 90 85 84 85
Gilead Sciences Inc. 103 100 101 110 102 100 105 106 102 97 78 81 81 89 114 122 131 134
Johnson & Johnson 163 165 169 166 158 154 149 164 155 147 136 136 132 127 128 125 128 120
Merck & Co. Inc. 150 147 149 153 151 144 139 137 134 124 118 119 133 159 134 131 152 149
Pfizer Inc. 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Regeneron Pharmaceuticals Inc. 582 572 573 562 553 519 508 532 549 562 440 379 287 292 415 445 653 625
Thermo Fisher Scientific Inc. 76 72 79 76 74 72 76 79 79 79 85 91 94 94 94 91 91 91
Vertex Pharmaceuticals Inc. 320 287 267 238 222 214 213 192 177 156 136 135 129 143 142 145 142 139

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 0.96 = 379

2 Click competitor name to see calculations.


Inventory Turnover Ratio
The inventory turnover ratio demonstrates an overall downward trend from early 2021 through the first quarter of 2025. Initially, the ratio increased from 1.38 in March 2021 to a peak of 1.93 in June 2022, indicating an improvement in inventory management and faster sales conversion. However, from that peak, the ratio steadily declined, reaching a low of 0.96 by March 2025. This reduction suggests a slowing rate of inventory turnover, pointing to potentially slower sales or excess inventory accumulation toward the end of the observed period.
Average Inventory Processing Period
The average inventory processing period inversely mirrors the inventory turnover trend. Starting at 265 days in March 2021, the processing period decreased until June 2022, reaching a low of 189 days, consistent with the peak inventory turnover ratio in the same timeframe. Subsequently, the period notably increased, rising sharply to 379 days by March 2025. This elongation indicates that inventory is remaining in stock for longer durations, reflecting either reduced sales velocity or inefficiencies in inventory management during the latter quarters.
Overall Insights
The data reveal a significant shift in inventory dynamics over the analyzed quarters. The period of improved turnover and reduced processing time observed through mid-2022 suggests efficient operations and strong demand. However, from late 2022 onward, the reversal of these trends points to challenges such as potential overstocking, demand softening, or possible disruptions affecting supply chain or sales. The sustained decline in turnover and prolonged inventory holding times through to early 2025 warrant further investigation to identify underlying causes and address operational inefficiencies.

Average Receivable Collection Period

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Receivables turnover 4.07 4.09 3.97 3.53 4.56 3.75 3.93 3.93 3.68 4.14 4.35 4.57 4.64 4.24 4.69 4.58 4.56 4.18
Short-term Activity Ratio (no. days)
Average receivable collection period1 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 79 71 75 78 80 75 76 75 74 71 68 72 69 65 61 67 70 70
Amgen Inc. 91 77 86 86 88 99 88 84 84 82 79 79 76 74 71 68 67 68
Danaher Corp. 54 54 54 51 52 60 59 55 53 57 51 54 53 57 55 56 58 66
Gilead Sciences Inc. 56 56 59 62 62 63 64 57 57 65 59 55 51 61 61 58 57 73
Johnson & Johnson 65 61 67 67 64 64 62 68 65 62 60 62 60 59 60 61 65 60
Merck & Co. Inc. 62 58 66 68 68 63 64 69 66 58 59 62 66 69 66 61 65 60
Pfizer Inc. 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Regeneron Pharmaceuticals Inc. 144 160 161 155 146 158 156 148 151 160 148 132 107 137 147 206 166 177
Thermo Fisher Scientific Inc. 72 70 71 68 68 70 70 67 66 66 63 66 70 74 52 52 56 65
Vertex Pharmaceuticals Inc. 59 53 60 58 64 58 58 60 61 59 58 58 59 55 56 51 56 52

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.07 = 90

2 Click competitor name to see calculations.


The receivables turnover ratio exhibits fluctuations over the analyzed period, with data available from the quarter ending March 31, 2020, through the quarter ending March 31, 2025. The ratio initially shows a moderate increase from 4.18 to a peak of 4.69 by December 31, 2020. Following this peak, the turnover ratio declines gradually, reaching its lowest point at 3.53 in June 30, 2024, before slightly recovering to about 4.07 by March 31, 2025. This pattern suggests variability in the efficiency of receivables collection, with periods of higher efficiency early in the timeline, followed by a decline and a partial rebound in later quarters.

Correspondingly, the average receivable collection period, expressed in the number of days, reflects an inverse relationship with the receivables turnover ratio, as expected. The collection period decreases from 87 days to a low of 78 days by December 31, 2020, indicating improved collection efficiency during this interval. Subsequently, it increases to a peak of 103 days by June 30, 2024, signifying extended collection times and reduced efficiency. This peak is followed by a moderate reduction to 90 days by March 31, 2025. These changes highlight a trend toward longer outstanding receivables in the mid-to-late period before a slight improvement towards the end of the dataset.

Overall, the data depict cycles in receivables management effectiveness, with an early phase of improvement up to the end of 2020, a mid-period decline in efficiency peaking in mid-2024, and a marginal recovery towards early 2025. The fluctuations in both turnover ratio and collection period suggest a need to further examine underlying operational or market factors influencing receivables during these intervals.


Operating Cycle

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

No. days

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Average receivable collection period 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Short-term Activity Ratio
Operating cycle1 469 418 441 419 392 395 354 360 367 325 280 284 268 280 282 283 297 352
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 177 161 164 153 155 148 153 160 155 146 134 145 143 130 124 134 138 149
Amgen Inc. 286 276 295 343 409 510 347 349 363 363 351 339 323 305 310 307 306 299
Danaher Corp. 150 142 155 153 150 156 163 157 157 148 147 152 147 145 145 141 142 151
Gilead Sciences Inc. 159 156 160 172 164 163 169 163 159 162 137 136 132 150 175 180 188 207
Johnson & Johnson 228 226 236 233 222 218 211 232 220 209 196 198 192 186 188 186 193 180
Merck & Co. Inc. 212 205 215 221 219 207 203 206 200 182 177 181 199 228 200 192 217 209
Pfizer Inc. 298 288 306 252 242 218 196 206 167 135 160 155 151 159 194 273 362 407
Regeneron Pharmaceuticals Inc. 726 732 734 717 699 677 664 680 700 722 588 511 394 429 562 651 819 802
Thermo Fisher Scientific Inc. 148 142 150 144 142 142 146 146 145 145 148 157 164 168 146 143 147 156
Vertex Pharmaceuticals Inc. 379 340 327 296 286 272 271 252 238 215 194 193 188 198 198 196 198 191

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 379 + 90 = 469

2 Click competitor name to see calculations.


The presented financial data reveals notable trends over the specified quarters with regard to the inventory processing period, receivable collection period, and overall operating cycle. Each metric provides important insights into the company's working capital management and operational efficiency.

Inventory Processing Period
This metric, measured in days, shows a general downward trend from 265 days in March 2020 to a low of 189 days in June 2022, indicating improved inventory turnover efficiency during this period. However, starting from June 2022 onward, there is a clear reversal of this trend, with the inventory period increasing markedly to reach 379 days by March 2025. This rise suggests a significant slowdown in inventory processing, implying potential issues such as overstocking, supply chain delays, or reduced product demand impacting inventory liquidation.
Receivable Collection Period
The receivable collection period exhibits moderate fluctuations without a consistent directional trend. Beginning at 87 days in March 2020, it decreases slightly to around 78-80 days by December 2020 and stays roughly within the 79-88 day range through early 2022. Subsequent quarters show an increasing variability, with a peak of 103 days in September 2024, followed by a moderate decline to 90 days by March 2025. These variations point to some inconsistency in credit management or customer payment patterns, with periods of slower collection that may impact liquidity.
Operating Cycle
The operating cycle reflects combined effects of both inventory and receivables management. Initially declining from 352 days in March 2020 to 268 days in June 2022, indicating improved operational efficiency, it subsequently rises sharply to 469 days by March 2025. This significant extension of the operating cycle is concurrent with the lengthening inventory processing period and fluctuating receivables collection, suggesting an overall deterioration in the cash conversion cycle. Such an increase implies that capital is tied up longer in the operating process, which may constrain the company’s working capital and operational flexibility.

In summary, the data indicates an initial phase of operational improvement marked by reductions in inventory days and operating cycle length, followed by a period beginning mid-2022 characterized by growing inefficiencies and increased working capital requirements. Attention may be warranted on inventory management and receivable collections to mitigate the lengthening operating cycle and its impact on financial stability and operational performance.


Average Payables Payment Period

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Payables turnover 2.61 2.61 2.70 2.56 2.88 2.73 2.81 2.65 3.07 3.43 4.24 4.21 5.24 4.38 4.46 4.30 3.75 3.41
Short-term Activity Ratio (no. days)
Average payables payment period1 140 140 135 142 127 134 130 138 119 106 86 87 70 83 82 85 97 107
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amgen Inc. 70 54 61 73 60 69 70 64 73 90 69 72 78 77 67 74 83 84
Bristol-Myers Squibb Co. 104 94 106 120 117 111 97 108 114 109 96 107 112 108 94 123 99 84
Danaher Corp. 66 66 60 63 62 65 65 63 64 67 65 73 72 82 70 66 69 76
Gilead Sciences Inc. 43 49 49 29 34 31 37 40 41 58 33 31 32 39 40 42 42 67
Johnson & Johnson 123 137 120 121 113 132 111 133 120 137 118 116 112 135 110 108 109 122
Merck & Co. Inc. 92 98 86 83 81 89 80 80 84 89 71 75 86 123 80 93 96 108
Pfizer Inc. 110 115 99 79 87 98 72 93 76 72 66 59 55 66 71 98 136 181
Regeneron Pharmaceuticals Inc. 129 146 94 110 137 122 106 116 136 138 98 91 68 84 86 107 164 155
Thermo Fisher Scientific Inc. 44 45 38 37 37 41 35 34 39 48 37 41 46 53 44 41 45 49
Vertex Pharmaceuticals Inc. 105 98 98 85 96 106 117 115 107 103 44 73 66 79 54 57 61 77

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.61 = 140

2 Click competitor name to see calculations.


Payables Turnover
The payables turnover ratio shows a varying trend over the observed periods. Starting at 3.41 in March 2020 (data first available in March 2020), the ratio gradually increased to reach a peak of 5.24 in June 2022. Following this peak, there is a consistent decline in the turnover ratio, falling to approximately 2.61 by March 2025. This indicates that the frequency with which the company is paying its suppliers increased until mid-2022 but has since slowed down, suggesting potentially longer payment intervals or changes in supplier terms.
Average Payables Payment Period
The average payables payment period is inversely related to the payables turnover ratio, measured in the number of days the company takes to pay its suppliers. Initially, it stood at 107 days in March 2020 and showed a general decreasing trend to a low of 70 days in June 2022, coinciding with the peak in payables turnover. After June 2022, the payment period lengthened significantly, increasing to 140 days by March 2025. This elongation of the payment period after mid-2022 indicates a slowdown in payment frequency, aligning with the observed decrease in payables turnover ratio.
Overall Analysis
The data reflects a clear shift in payment behavior around mid-2022. Up to that point, the company has been accelerating payments to suppliers, reducing the payment cycle. However, after June 2022, there is a marked reversal, with the payment period extending substantially and the payables turnover ratio decreasing accordingly. This suggests a move toward extended credit terms or managing cash flows by delaying payments. The consistency of these trends across multiple subsequent quarters signifies a strategic or operational adjustment in managing payables.

Cash Conversion Cycle

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

No. days

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Average receivable collection period 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Average payables payment period 140 140 135 142 127 134 130 138 119 106 86 87 70 83 82 85 97 107
Short-term Activity Ratio
Cash conversion cycle1 329 278 306 277 265 261 224 222 248 219 194 197 198 197 200 198 200 245
Benchmarks
Cash Conversion Cycle, Competitors2
Amgen Inc. 216 222 234 270 349 441 277 285 290 273 282 267 245 228 243 233 223 215
Danaher Corp. 84 76 95 90 88 91 98 94 93 81 82 79 75 63 75 75 73 75
Gilead Sciences Inc. 116 107 111 143 130 132 132 123 118 104 104 105 100 111 135 138 146 140
Johnson & Johnson 105 89 116 112 109 86 100 99 100 72 78 82 80 51 78 78 84 58
Merck & Co. Inc. 120 107 129 138 138 118 123 126 116 93 106 106 113 105 120 99 121 101
Pfizer Inc. 188 173 207 173 155 120 124 113 91 63 94 96 96 93 123 175 226 226
Regeneron Pharmaceuticals Inc. 597 586 640 607 562 555 558 564 564 584 490 420 326 345 476 544 655 647
Thermo Fisher Scientific Inc. 104 97 112 107 105 101 111 112 106 97 111 116 118 115 102 102 102 107
Vertex Pharmaceuticals Inc. 274 242 229 211 190 166 154 137 131 112 150 120 122 119 144 139 137 114

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 379 + 90140 = 329

2 Click competitor name to see calculations.


The analysis of the quarterly data reveals distinct trends in the key operational efficiency metrics over the period under consideration.

Average Inventory Processing Period
Starting with a notably high value of 265 days in early 2020, there is an initial downward trajectory reaching a low point around 189 days in mid-2022. Subsequently, the inventory processing period exhibits a marked upward trend, climbing steadily from 196 days to a peak of 379 days by the first quarter of 2025. This increase in inventory holding duration could indicate growing challenges in inventory management or shifts in supply chain dynamics.
Average Receivable Collection Period
The average collection period shows moderate fluctuations throughout the timeline. Beginning near 87 days, it trends slightly downward to the high 70s to low 80s range mid-2021, before exhibiting variability with a peak close to 103 days in the third quarter of 2024. By the end of the period, it declines again to approximately 90 days. The persistence of collection periods around the 80 to 100-day range suggests ongoing efforts to balance credit terms with customer payment behaviors.
Average Payables Payment Period
There is a general decline in the payables payment period from around 107 days initially, reaching a low near 70 days in mid-2021. Following this, the payment period reverses upwards, rising sharply to approximately 140 days by late 2024 and early 2025. The lengthening payment period may reflect a strategic extension of supplier payment terms or potential liquidity management actions implemented during this timeframe.
Cash Conversion Cycle (CCC)
The CCC moves in tandem with the trends observed in inventory and payables periods. After an initial decline from 245 days to roughly 194 days between 2020 and mid-2022, the cycle duration progressively extends, culminating in a high of 329 days by the first quarter of 2025. This elongation indicates a slower conversion of resources into cash, possibly signaling increasing operational or receivables management challenges.

In summary, while early periods show improvements or stability in inventory turnover, receivables collection, and payment cycles, recent quarters reveal an overall lengthening in these durations. The protracted cash conversion cycle highlights a potential area for operational review, as increased delays in inventory processing and payment obligations impact the company's liquidity and working capital efficiency.