Eli Lilly and Company (LLY)

Liquidity ratios

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
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
Quick ratio 0.52 0.58 0.63 0.79 0.53 0.71 0.67 0.77 0.70 0.79 0.67 0.83 0.77 0.79 0.68 0.64 0.59 0.66 0.67 0.65
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

Lilly (Eli) & Co's liquidity ratios have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has shown a declining trend from Q1 2023 to Q4 2023, dropping from 1.30 to 0.94. This suggests that the company may be experiencing challenges in managing its current liabilities with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend over the same period, falling from 1.02 in Q1 2023 to 0.73 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory, has weakened.

Furthermore, the cash ratio, which evaluates the company's ability to pay off its current liabilities with its cash and cash equivalents, has also been on a downward trajectory from Q1 2023 to Q4 2023, declining from 0.45 to 0.32. This suggests that Lilly (Eli) & Co may have less cash on hand relative to its current liabilities compared to previous quarters.

Overall, the declining trend in Lilly (Eli) & Co's liquidity ratios indicates potential liquidity challenges that the company may be facing in meeting its short-term obligations. It is essential for the company to closely monitor its liquidity position and take necessary measures to improve its ability to meet its financial obligations in a timely manner.

See also:

Eli Lilly and Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 200.62 181.60 174.45 188.61 152.41 159.49 155.85 159.75 142.16 154.68 153.79 153.34 160.12 171.61 172.24 173.92 141.86 164.61 161.61 147.63

The cash conversion cycle of Lilly(Eli) & Co has shown fluctuations over the past eight quarters, ranging from a low of 213.41 days in Q2 2022 to a high of 284.84 days in Q4 2023. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash has varied over time.

The company's cash conversion cycle reached its lowest point in Q2 2022, suggesting that Lilly(Eli) & Co managed its inventory and accounts receivable efficiently during that period. However, there was a notable increase in the cycle in Q4 2023, indicating potential challenges in converting assets into cash during that quarter.

Overall, fluctuations in the cash conversion cycle may reflect changes in the company's operating efficiency and liquidity management. Further analysis of the underlying factors driving these changes would be necessary to fully understand the implications for Lilly(Eli) & Co's financial performance.