Eli Lilly and Company (LLY)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	17,963,900	16,525,400	15,837,100	14,846,200	14,596,700	14,142,000	13,900,900	13,245,000	13,521,600	14,108,300	13,737,000	14,343,500	14,399,600	13,711,200	13,658,000	12,724,900	11,912,100	9,731,900	9,384,100	9,410,800
Inventory	US$ in thousands	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
Inventory turnover		2.37	2.22	2.44	2.43	2.53	2.89	2.90	2.91	3.14	3.68	3.52	3.68	3.71	3.51	3.57	3.48	2.99	2.74	2.83	3.03

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,963,900K ÷ $7,589,200K
= 2.37

Inventory turnover is a key financial ratio that assesses how efficiently a company manages its inventory by measuring the number of times it sells and replaces its inventory within a specific period. A higher inventory turnover ratio generally indicates more efficient inventory management.

Based on the provided data for Eli Lilly and Company, the inventory turnover has fluctuated over the past few years. From March 31, 2020, to December 31, 2024, the inventory turnover ranged between 2.22 and 3.71. The highest inventory turnover was observed on December 31, 2021, at 3.71, while the lowest was on September 30, 2024, at 2.22.

Overall, the trend in Eli Lilly's inventory turnover shows some variability, but it generally remained above 2, indicating a reasonable level of efficiency in managing its inventory during the period under review. It is important to monitor inventory turnover regularly to ensure optimal utilization of resources and effectiveness in the company's operations.