Eli Lilly and Company (LLY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	10,771,900	10,649,800	8,979,200	5,641,600	2,606,900
ROE		48.65%	58.64%	62.16%	109.79%	319.09%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,240,400K ÷ $10,771,900K
= 48.65%

The return on equity (ROE) of Lilly(Eli) & Co has demonstrated a declining trend over the past five years. The ROE decreased from 319.09% in 2019 to 48.65% in 2023. This significant decrease indicates a substantial reduction in the company's ability to generate profit from shareholders' equity during this period.

The ROE of Lilly(Eli) & Co was notably high in 2019 and 2020 at 319.09% and 109.79%, respectively, suggesting strong profitability relative to shareholders' investment. However, the ROE declined sharply in the following years, reaching 48.65% in 2023. This drop may raise concerns about the company's efficiency in utilizing shareholders' equity to generate profits.

Overall, the decreasing trend in ROE for Lilly(Eli) & Co over the past five years signals potential challenges in maintaining profitability levels relative to shareholders' equity. Further analysis of the company's financial performance and strategies may be necessary to address the declining ROE and identify opportunities for improvement.