Eli Lilly and Company (LLY)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	10,590,000	8,369,900	7,342,200	6,138,400	5,240,400	4,988,400	6,497,500	5,686,800	6,244,800	6,033,200	5,691,600	6,129,300	5,581,700	5,972,400	6,070,700	6,092,500	6,193,700	5,572,600	5,618,100	5,533,300
Total assets	US$ in thousands	78,714,900	75,606,900	71,874,800	63,943,500	64,006,300	57,915,500	54,814,000	53,163,000	49,489,800	47,461,500	47,063,600	46,919,300	48,806,000	48,187,000	47,809,000	46,838,300	46,633,100	43,946,000	41,967,000	41,102,800
ROA		13.45%	11.07%	10.22%	9.60%	8.19%	8.61%	11.85%	10.70%	12.62%	12.71%	12.09%	13.06%	11.44%	12.39%	12.70%	13.01%	13.28%	12.68%	13.39%	13.46%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $10,590,000K ÷ $78,714,900K
= 13.45%

The Return on Assets (ROA) measures a company's efficiency in generating profits from its assets. It indicates how effectively the company is utilizing its assets to generate earnings.

Based on the provided data for Eli Lilly and Company, the ROA fluctuated over the period from March 31, 2020, to December 31, 2024. The ROA started at 13.46% in March 2020 and generally maintained levels above 10% until December 2022, with some fluctuations between 11% and 13%.

From March 2020 to December 2022, Eli Lilly and Company demonstrated solid asset utilization, consistently generating a return of over 10% on its assets. However, the ROA began to decrease from March 2023 onwards, dropping to 8.19% by December 31, 2023.

By June 30, 2024, the ROA saw a slight improvement to 10.22% and continued to rise in the subsequent quarters, reaching 13.45% by the end of December 31, 2024. This uptrend suggests a recovery in asset efficiency and profitability for the company in the latter half of 2024.

Overall, a higher ROA indicates better asset utilization and profitability, while a declining ROA may signify inefficiencies in asset management or a decrease in profitability relative to the size of the company's asset base. The upward trend in ROA for Eli Lilly and Company in late 2024 suggests improved operational efficiency and profitability in utilizing its assets.