Eli Lilly and Company (LLY)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	27,078,800	19,527,400	15,019,800	13,918,800	12,627,700
Revenue	US$ in thousands	45,042,700	34,124,100	28,541,400	28,318,400	24,539,800
Gross profit margin		60.12%	57.22%	52.62%	49.15%	51.46%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $27,078,800K ÷ $45,042,700K
= 60.12%

Eli Lilly and Company's gross profit margin has exhibited fluctuations over the years based on the provided data. In December 31, 2020, the gross profit margin stood at 51.46%, indicating the company retained approximately 51.46% of its revenue after accounting for the cost of goods sold. The margin decreased to 49.15% by December 31, 2021, suggesting potential cost pressures or changes in pricing strategies.

However, the trend reversed in the subsequent years, with the gross profit margin increasing to 52.62% by December 31, 2022, 57.22% by December 31, 2023, and further rising to 60.12% by December 31, 2024. These improvements indicate enhanced operational efficiency, effective cost management, or potentially higher sales prices relative to production costs.

The rising gross profit margin trend from 2022 to 2024 suggests that Eli Lilly and Company may be successfully optimizing its production processes, managing input costs effectively, or enjoying pricing power in the market. This positive trajectory is indicative of the company's ability to generate more profit from its core operations over time.