Eli Lilly and Company (LLY)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	32,739,700	25,727,000	18,034,500	18,452,400	17,462,100
Total current liabilities	US$ in thousands	28,376,600	27,293,200	17,138,200	15,052,700	12,481,600
Current ratio		1.15	0.94	1.05	1.23	1.40

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $32,739,700K ÷ $28,376,600K
= 1.15

Eli Lilly and Company's current ratio has exhibited a declining trend over the past five years, starting at 1.40 in December 2020 and falling to 1.15 by December 2024. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, indicates a potential strain on liquidity in recent years. While a current ratio above 1 indicates the company can meet its short-term obligations, the decreasing trend suggests a need for careful monitoring of liquidity and working capital management. A ratio of 1.15 in December 2024, though over 1, is getting closer to the threshold of 1, signaling the importance of enhancing current asset levels or managing current liabilities effectively to ensure financial stability in the short term.