Eli Lilly and Company (LLY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,596,700 | 13,521,600 | 14,399,600 | 11,912,100 | 11,526,500 |
| Inventory | US$ in thousands | 5,772,800 | 4,309,700 | 3,886,000 | 3,980,300 | 3,190,700 |
| Inventory turnover | 2.53 | 3.14 | 3.71 | 2.99 | 3.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $14,596,700K ÷ $5,772,800K
= 2.53
The inventory turnover ratio for Lilly(Eli) & Co has exhibited fluctuating trends over the past five years. The ratio decreased from 1.48 in 2019 to 1.38 in 2020, indicating a decline in the efficiency of inventory management during that period. However, there was a notable improvement in 2021, with the ratio jumping to 1.88, suggesting a more efficient utilization of inventory assets.
In the subsequent years, the inventory turnover ratio decreased to 1.54 in 2022 and further to 1.23 in 2023. These declines may signal potential issues such as excessive inventory levels or slowing sales in relation to the level of inventory held by the company.
Overall, Lilly(Eli) & Co's inventory turnover ratio has experienced fluctuations, which could be attributed to various factors influencing inventory management and sales performance within the company. Further analysis of the company's operations and market conditions may provide insights into the reasons behind these fluctuations and help determine the effectiveness of its inventory management strategies.
Peer comparison
Dec 31, 2023