Eli Lilly and Company (LLY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	3,268,400	2,818,600	2,067,000	3,818,500	3,657,100
Short-term investments	US$ in thousands	154,800	109,100	144,800	90,100	24,200
Total current liabilities	US$ in thousands	28,376,600	27,293,200	17,138,200	15,052,700	12,481,600
Cash ratio		0.12	0.11	0.13	0.26	0.29

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,268,400K + $154,800K) ÷ $28,376,600K
= 0.12

The cash ratio of Eli Lilly and Company has shown a declining trend over the years, decreasing from 0.29 in December 31, 2020, to 0.12 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened. A lower cash ratio may suggest potential liquidity challenges or a shift in the company's financial strategy towards less liquid assets. It is important for investors and stakeholders to closely monitor this trend to assess the company's ability to meet its short-term obligations efficiently.