Eli Lilly and Company (LLY)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,240,400 | 6,244,800 | 5,581,700 | 6,193,700 | 8,318,400 |
| Total assets | US$ in thousands | 64,006,300 | 49,489,800 | 48,806,000 | 46,633,100 | 39,286,100 |
| ROA | 8.19% | 12.62% | 11.44% | 13.28% | 21.17% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $5,240,400K ÷ $64,006,300K
= 8.19%
Lilly(Eli) & Co's return on assets (ROA) has shown a downward trend in recent years based on the data provided. The ROA decreased from 21.17% in 2019 to 8.19% in 2023. This decline signifies a decrease in the company's ability to generate earnings from its assets over time.
The decreasing trend in ROA could be a red flag for investors and stakeholders as it may indicate inefficiencies in asset utilization or declining profitability. It is essential for the company to assess its asset management strategies and operational efficiency to improve its ROA in order to remain competitive and create value for its shareholders.
Further analysis of the company's financial performance, operational efficiency, and strategic decisions is recommended to understand the underlying reasons for the declining ROA and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023