Eli Lilly and Company (LLY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	2,818,600	2,380,800	2,694,500	3,545,900	2,067,000	2,617,400	2,622,900	2,459,200	3,818,500	3,788,200	3,220,000	3,002,400	3,657,100	3,595,300	2,365,100	1,699,000	2,337,500	1,563,800	2,290,200	2,036,400
Short-term investments	US$ in thousands	109,100	113,100	134,600	123,400	144,800	124,700	113,800	109,100	90,100	37,100	51,200	49,000	24,200	35,000	22,800	78,400	101,000	89,200	77,700	100,700
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
Cash ratio		0.11	0.11	0.15	0.23	0.13	0.18	0.18	0.19	0.26	0.28	0.22	0.26	0.29	0.30	0.20	0.14	0.21	0.15	0.20	0.19

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 shown variability over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In the most recent quarter, Q4 2023, Lilly(Eli) & Co's cash ratio decreased to 0.32 from 0.35 in Q3 2023. This decline may suggest a slight decrease in the company's ability to cover its short-term liabilities with cash. However, it is important to note that a cash ratio of 0.32 still indicates that the company has a sufficient level of cash to meet its short-term obligations.

Looking at the trend over the past eight quarters, it is evident that the cash ratio has fluctuated between 0.30 and 0.45. This variability may be influenced by factors such as changes in cash holdings, cash flow dynamics, and overall financial performance.

Overall, while the recent decrease in the cash ratio may warrant further analysis to understand the underlying reasons, Lilly(Eli) & Co's historical cash ratio levels indicate a generally stable ability to cover its short-term liabilities with available cash and cash equivalents.