Eli Lilly and Company (LLY)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	45,042,700	34,124,100	28,541,400	28,318,400	24,539,800
Property, plant and equipment	US$ in thousands	17,102,400	12,913,600	10,144,000	8,985,100	8,681,900
Fixed asset turnover		2.63	2.64	2.81	3.15	2.83

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $45,042,700K ÷ $17,102,400K
= 2.63

The fixed asset turnover ratio for Eli Lilly and Company has shown a fluctuating trend over the years, starting at 2.83 in December 31, 2020, increasing to 3.15 by December 31, 2021, before declining to 2.81 by December 31, 2022. This downward trend continued with a further decrease to 2.64 by December 31, 2023, and a slight drop to 2.63 by December 31, 2024. Overall, the ratio indicates the company's ability to generate revenue relative to its investment in fixed assets, and the declining trend suggests a potential inefficiency in utilizing its fixed assets to generate sales. Further analysis would be required to determine the reasons behind the fluctuations and to assess the impact on the company's operational efficiency and profitability.