Eli Lilly and Company (LLY)

Payables 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
Payables	US$ in thousands	3,228,600	2,886,500	2,924,800	2,473,700	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
Payables turnover		5.56	5.73	5.41	6.00	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

December 31, 2024 calculation

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

The payables turnover ratio for Eli Lilly and Company has shown fluctuations over the past years. It stood at 7.79 as of March 31, 2020, and decreased to 5.62 by June 30, 2023. The ratio has hovered between 5 and 10 times during the period under review. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may signify efficient management of its accounts payable. Conversely, a lower ratio may indicate a longer payment period to suppliers, potentially signaling liquidity issues or strained supplier relationships. It is essential to monitor this ratio over time to assess the company's liquidity, operational efficiency, and vendor management practices.