Eli Lilly and Company (LLY)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	3,268,400	3,369,000	3,223,600	2,460,200	2,818,600	2,380,800	2,694,500	3,545,900	2,067,000	2,617,400	2,622,900	2,459,200	3,818,500	3,788,200	3,220,000	3,002,400	3,657,100	3,595,300	2,365,100	1,699,000
Short-term investments	US$ in thousands	154,800	149,400	140,400	126,100	109,100	113,100	134,600	123,400	144,800	124,700	113,800	109,100	90,100	37,100	51,200	49,000	24,200	35,000	22,800	78,400
Receivables	US$ in thousands	13,275,400	12,051,700	13,079,000	10,013,500	11,336,200	10,363,800	9,171,400	9,022,100	6,896,000	8,324,800	7,672,400	7,805,700	6,672,800	7,025,000	6,902,800	6,658,600	5,875,300	5,844,800	5,775,600	6,352,500
Total current liabilities	US$ in thousands	28,376,600	24,674,100	27,121,200	18,598,100	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
Quick ratio		0.59	0.63	0.61	0.68	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

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 some fluctuation over the period analyzed. Starting at 0.64 as of March 31, 2020, it increased to 0.83 by March 31, 2021, indicating an improvement in the company's short-term liquidity position. However, it then decreased to 0.67 by June 30, 2021, before increasing again to 0.79 by September 30, 2021.

The quick ratio remained relatively stable around 0.70 in the following quarters before decreasing to 0.52 by December 31, 2023. This significant drop may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets.

The ratio slightly recovered to 0.68 by March 31, 2024, but then decreased again to 0.59 by December 31, 2024. While the quick ratio of Eli Lilly and Company has shown some variability, it generally stayed above 0.5, indicating that the company has been able to meet its short-term obligations using its quick assets, such as cash and marketable securities. Nonetheless, a sustained downward trend in the quick ratio might warrant further investigation into the company's liquidity management.