Eli Lilly and Company (LLY)

Current 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
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
Current ratio		0.94	1.05	1.13	1.30	1.05	1.13	1.10	1.27	1.23	1.30	1.15	1.42	1.40	1.36	1.22	1.11	1.16	1.17	1.13	1.12

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $25,727,000K ÷ $27,293,200K
= 0.94

The current ratio of Lilly(Eli) & Co has shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 1.30 in Q1 2023 to 0.94 in Q4 2023. This indicates a potential liquidity concern in Q4 2023 as the company may have had difficulty meeting its short-term obligations with its current assets.

However, it's worth noting that the current ratio has been relatively stable around the 1.05 to 1.13 range in the previous quarters, with occasional increases and decreases. This could suggest that the company has managed its short-term liquidity well overall during this period.

In general, a current ratio below 1 indicates that a company may have difficulty meeting its short-term obligations, while a ratio above 1 is typically considered healthy. It would be important to further investigate the reasons behind the decrease in the current ratio in Q4 2023 to assess the company's overall financial health and liquidity position.