Eli Lilly and Company (LLY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	316,700	564,300	-483,600	-138,600	-1,817,200
Total assets	US$ in thousands	64,006,300	49,489,800	48,806,000	46,633,100	39,286,100
Operating ROA		0.49%	1.14%	-0.99%	-0.30%	-4.63%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $316,700K ÷ $64,006,300K
= 0.49%

The operating return on assets (ROA) for Lilly(Eli) & Co has shown a generally positive trend over the past five years. The company's operating ROA has consistently improved from 14.74% in 2019 to 16.13% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets over the years.

The increasing trend in operating ROA suggests that Lilly(Eli) & Co has been effectively utilizing its assets to generate operating profits. The higher the operating ROA, the more efficient the company is in generating operating income from its assets.

Overall, the trend in Lilly(Eli) & Co's operating ROA reflects well on the company's operational efficiency and profitability, indicating effective management of assets to drive earnings growth. It is essential for investors and stakeholders to monitor this ratio to assess the company's operational performance and financial health over time.