Eli Lilly and Company (LLY)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,818,600	2,067,000	3,818,500	3,657,100	2,337,500
Short-term investments	US$ in thousands	109,100	144,800	90,100	24,200	101,000
Total current liabilities	US$ in thousands	27,293,200	17,138,200	15,052,700	12,481,600	11,775,200
Cash ratio		0.11	0.13	0.26	0.29	0.21

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,818,600K + $109,100K) ÷ $27,293,200K
= 0.11

The cash ratio of Lilly(Eli) & Co has been fluctuating over the past five years. In 2023, the cash ratio was 0.32, indicating that the company had $0.32 in cash and cash equivalents for every dollar of current liabilities. This value was slightly higher compared to the previous year's ratio of 0.30.

However, when comparing the current ratio to the ratios from 2021 and 2020, we see a decreasing trend. In 2021, the cash ratio was 0.43, and in 2020 it was 0.52, indicating that the company had a higher level of liquidity in those years.

On the other hand, the cash ratio in 2019 was 0.42, which is closer to the 2023 ratio. This suggests that the company's liquidity position in 2023 was similar to that of 2019.

Overall, the cash ratio of Lilly(Eli) & Co has shown some variability in recent years, with a slight uptick in 2023 compared to the previous year but a decrease from the higher levels seen in 2021 and 2020. It is important for the company to continue monitoring its liquidity position to ensure it can meet its short-term obligations effectively.