Eli Lilly and Company (LLY)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	9,654,600	10,060,000	10,724,200	11,438,700
Payables	US$ in thousands	2,598,800	2,435,100	2,474,200	2,015,900	1,930,600	1,683,200	1,659,300	1,433,300	1,670,600	1,566,800	1,597,800	1,639,600	1,606,700	1,430,100	1,247,200	1,207,700	1,405,300	1,114,900	1,198,900	1,168,100
Payables turnover		5.62	5.81	5.62	6.57	7.00	8.38	8.28	10.01	8.62	8.75	8.55	7.76	7.41	6.81	7.52	7.79	6.87	9.02	8.95	9.79

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,596,700K ÷ $2,598,800K
= 5.62

The payables turnover ratio for Lilly(Eli) & Co has been fluctuating over the past eight quarters, ranging from 2.65 to 5.24. In Q4 2023, the payables turnover ratio was 2.73, showing a slight decrease from the previous quarter. This indicates that the company takes approximately 2.73 times to pay off its accounts payable during the fourth quarter of 2023.

Comparing to Q1 2022, where the payables turnover ratio was the highest at 5.24, the trend has been declining since then. A lower payables turnover ratio may suggest that the company is taking a longer time to pay off its suppliers, which could potentially strain its relationships with them if not managed effectively.

Overall, it is important for Lilly(Eli) & Co to closely monitor its payables turnover ratio to ensure efficient management of its accounts payable and maintain positive relationships with its suppliers.