Eli Lilly and Company (LLY)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	3,268,400	2,818,600	2,067,000	3,818,500	3,657,100
Short-term investments	US$ in thousands	154,800	109,100	144,800	90,100	24,200
Receivables	US$ in thousands	13,275,400	11,336,200	6,896,000	6,672,800	5,875,300
Total current liabilities	US$ in thousands	28,376,600	27,293,200	17,138,200	15,052,700	12,481,600
Quick ratio		0.59	0.52	0.53	0.70	0.77

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,268,400K + $154,800K + $13,275,400K) ÷ $28,376,600K
= 0.59

The quick ratio of Eli Lilly and Company has shown fluctuations over the years. As of December 31, 2020, the quick ratio stood at 0.77, indicating the company had $0.77 in liquid assets available to cover each dollar of current liabilities.

However, by December 31, 2021, this ratio decreased to 0.70, suggesting a slight deterioration in the company's ability to meet its short-term obligations with its quick assets.

The trend continued in the following years, with the quick ratio falling to 0.53 as of December 31, 2022, and further decreasing to 0.52 by December 31, 2023. These lower ratios may raise concerns about Eli Lilly's liquidity position and its ability to fulfill its current financial obligations using its most liquid assets.

By December 31, 2024, there was a slight improvement as the quick ratio increased to 0.59, but it still remained below the ideal threshold of 1.0, indicating that the company may face challenges in meeting its short-term liabilities solely with its quick assets.

Overall, the declining trend in Eli Lilly's quick ratio over the period raises questions about the company's liquidity management and its ability to cover immediate obligations using readily available assets.