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.
Peer comparison
Dec 31, 2024