Eli Lilly and Company (LLY)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	45,042,700	40,863,300	38,922,800	35,932,100	34,124,100	32,072,500	29,515,500	27,691,400	28,541,400	29,239,500	29,070,700	29,322,800	28,318,400	27,758,500	26,726,300	25,485,600	24,539,800	23,213,800	22,949,800	23,087,100
Property, plant and equipment	US$ in thousands	17,102,400	16,171,800	14,829,400	13,624,000	12,913,600	11,863,200	11,277,400	10,546,200	10,144,000	9,311,300	9,128,200	9,102,700	8,985,100	8,920,400	8,855,500	8,630,100	8,681,900	8,281,100	7,981,100	7,897,900
Fixed asset turnover		2.63	2.53	2.62	2.64	2.64	2.70	2.62	2.63	2.81	3.14	3.18	3.22	3.15	3.11	3.02	2.95	2.83	2.80	2.88	2.92

December 31, 2024 calculation

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

Fixed asset turnover measures how efficiently a company generates sales using its fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate revenue.

Based on the provided data for Eli Lilly and Company, the fixed asset turnover ratio has shown some fluctuations over the years. From March 31, 2020, to December 31, 2022, the ratio ranged between 2.80 and 3.22, indicating a relatively stable and efficient use of fixed assets to generate sales.

However, there was a slight decline in the ratio in the following periods, reaching a low of 2.53 on September 30, 2024. This may suggest a decrease in the efficiency of utilizing fixed assets to generate revenue during that period.

Overall, the trend of Eli Lilly and Company's fixed asset turnover ratio shows some variability but generally reflects a consistent and efficient utilization of fixed assets in generating sales over the years. Further analysis of the company's operational and strategic initiatives may provide more insights into the factors influencing these fluctuations.