Eli Lilly and Company (LLY)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	17,963,900	14,596,700	13,521,600	14,399,600	11,912,100
Payables	US$ in thousands	3,228,600	2,598,800	1,930,600	1,670,600	1,606,700
Payables turnover		5.56	5.62	7.00	8.62	7.41

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $17,963,900K ÷ $3,228,600K
= 5.56

The payables turnover ratio for Eli Lilly and Company has shown varying trends over the past five years. In December 2020, the payables turnover ratio was 7.41 times, indicating that the company converted its accounts payable into payments from suppliers approximately 7.41 times during that year.

By December 2021, the payables turnover ratio had improved to 8.62 times, suggesting that the company managed its accounts payable more efficiently, making payments to suppliers more frequently.

However, in the following years, there was a decline in the payables turnover ratio. By December 2022, the ratio decreased to 7.00 times, and by December 2023, it further dropped to 5.62 times. This may indicate a slower pace of converting accounts payable into payments during those years.

In the most recent year, as of December 31, 2024, the payables turnover ratio stood at 5.56 times, continuing the downward trend observed in the previous years. This could imply that Eli Lilly and Company took longer to settle its accounts payable with suppliers during that period.

Overall, fluctuations in the payables turnover ratio can be influenced by factors such as changes in payment terms with suppliers, inventory management practices, and the company's overall financial health. Further analysis and comparison with industry averages may provide additional insights into Eli Lilly and Company's payables management efficiency.