Eli Lilly and Company (LLY)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	34,124,100	28,541,400	28,318,400	24,539,800	22,319,500
Receivables	US$ in thousands	11,336,200	6,896,000	6,672,800	5,875,300	4,547,300
Receivables turnover		3.01	4.14	4.24	4.18	4.91

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $34,124,100K ÷ $11,336,200K
= 3.01

Lilly(Eli) & Co's receivables turnover has exhibited a gradual decline over the past five years, decreasing from 4.03 in 2019 to 3.01 in 2023. This indicates that the company is taking longer to collect payments from its customers. A lower receivables turnover ratio may suggest a potential issue with the company's credit policy, collection practices, or the quality of its customers. It is essential for Lilly(Eli) & Co to closely monitor and improve its accounts receivable management to ensure timely collections and optimize its working capital efficiency.