Eli Lilly and Company (LLY)

Quick 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
Cash	US$ in thousands	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	2,337,500	1,563,800	2,290,200	2,036,400
Short-term investments	US$ in thousands	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	101,000	89,200	77,700	100,700
Receivables	US$ in thousands	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	4,547,300	5,537,900	5,590,000	5,178,000
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,818,600K + $109,100K + $11,336,200K) ÷ $27,293,200K
= 0.52

The quick ratio of Lilly(Eli) & Co has been fluctuating over the past eight quarters, ranging from a low of 0.73 in Q4 2023 to a high of 1.02 in Q1 2023. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current liquid assets alone.

The downward trend observed from Q1 2023 to Q4 2023 could suggest potential liquidity challenges for the company in the near term. However, it is essential to consider other factors such as the industry norms and the company's operating cycle when interpreting the quick ratio in isolation.

As an analyst, further investigation into the composition of current assets and liabilities, as well as any significant changes in operating activities, would provide a more nuanced understanding of Lilly(Eli) & Co's liquidity position.