Eli Lilly and Company (LLY)

Receivables 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
Revenue (ttm)	US$ in thousands	34,124,100	32,072,500	29,515,500	27,691,400	28,541,400	29,239,500	29,070,700	29,322,800	28,318,400	27,758,500	26,726,300	25,485,600	24,539,800	23,213,800	22,949,800	23,087,100	22,319,500	21,843,100	21,673,400	21,621,700
Receivables	US$ in thousands	11,336,200	10,363,800	9,171,400	9,022,100	6,896,000	8,324,800	7,672,400	7,805,700	6,672,800	7,025,000	6,902,800	6,658,600	5,875,300	5,844,800	5,775,600	6,352,500	4,547,300	5,537,900	5,590,000	5,178,000
Receivables turnover		3.01	3.09	3.22	3.07	4.14	3.51	3.79	3.76	4.24	3.95	3.87	3.83	4.18	3.97	3.97	3.63	4.91	3.94	3.88	4.18

December 31, 2023 calculation

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

Lilly(Eli) & Co's receivables turnover has exhibited a declining trend over the past eight quarters, from 3.79 in Q2 2022 to 3.01 in Q4 2023. This may indicate that the company is taking longer to collect payments from its customers. A lower receivables turnover ratio can suggest potentially inefficient credit policies, problems with the collection process, or changing customer payment behaviors.

Although the receivables turnover ratio has fluctuated quarter to quarter, the overall trend suggests a lengthening of the collection period. This could lead to issues such as increased bad debts or cash flow constraints if outstanding receivables are not collected in a timely manner.

It is important for Lilly(Eli) & Co to closely monitor and address the factors contributing to the declining receivables turnover ratio to ensure the efficient management of its accounts receivable and maintain healthy liquidity position.