Eli Lilly and Company (LLY)

Working capital 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
Total current assets	US$ in thousands	25,727,000	23,007,000	21,331,600	20,811,400	18,034,500	17,639,900	17,115,200	16,964,700	18,452,400	17,808,300	17,295,500	16,604,500	17,462,100	16,239,900	14,581,900	13,994,200	13,709,600	12,661,800	13,454,500	12,597,500
Total current liabilities	US$ in thousands	27,293,200	21,998,200	18,915,000	16,010,000	17,138,200	15,652,800	15,620,600	13,386,000	15,052,700	13,682,000	15,093,200	11,714,200	12,481,600	11,976,900	11,988,500	12,610,200	11,775,200	10,828,600	11,855,400	11,236,100
Working capital turnover		—	31.79	12.21	5.77	31.84	14.71	19.45	8.19	8.33	6.73	12.14	5.21	4.93	5.45	8.85	16.68	11.54	11.92	13.55	15.88

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $34,124,100K ÷ ($25,727,000K – $27,293,200K)
= —

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

For Lilly(Eli) & Co, the working capital turnover ratio showed fluctuations throughout the quarters in 2022 and 2023. In Q4 2023, the ratio was not provided, but in Q3 2023, it was 31.79, indicating a significant improvement in efficiency compared to Q2 2023 (12.21) and Q1 2023 (5.77). This may suggest that the company effectively utilized its working capital to generate sales in Q3 2023.

Looking back at 2022, the working capital turnover ratio was quite variable, ranging from 8.19 in Q1 to 31.84 in Q4. The highest ratio was seen in Q4, indicating a strong efficiency in using working capital to drive sales. Q2 2022 (19.45) also showed a relatively good performance in this aspect.

Overall, Lilly(Eli) & Co's working capital turnover ratio has displayed fluctuations over the periods analyzed. It is essential for the company to maintain a balance in managing its working capital efficiently to ensure sustainable operational performance and profitability.