Eli Lilly and Company (LLY)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.62 | 7.00 | 8.62 | 7.41 | 8.20 | |
| Number of days of payables | days | 64.98 | 52.11 | 42.35 | 49.23 | 44.50 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.62
= 64.98
The number of days of payables for Lilly(Eli) & Co has exhibited fluctuations over the past five years. As of Dec 31, 2023, the company takes approximately 133.94 days to pay its outstanding obligations to suppliers, representing an increase compared to the prior year. This prolonged payment cycle may indicate a potential strain on liquidity or operational inefficiencies.
In contrast, the number of days of payables was notably lower at 83.38 days as of Dec 31, 2021, suggesting a more efficient management of payables during that period. Despite a slight uptick in 2022, the metric remained relatively stable at around 106 days in the two preceding years.
It is essential for investors and analysts to monitor the trend in days of payables closely, as a significant deviation from historical levels could signal changes in the company's working capital management or supplier relationships that may impact its financial health and operational effectiveness.
Peer comparison
Dec 31, 2023