Eli Lilly and Company (LLY)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	8,318,400	7,947,700	7,843,300	6,256,200
Total stockholders’ equity	US$ in thousands	10,771,900	11,220,400	11,063,800	11,190,400	10,649,800	10,070,100	8,544,700	9,330,800	8,979,200	7,757,000	6,444,400	6,898,700	5,641,600	4,826,900	4,092,900	3,078,800	2,606,900	3,382,500	2,780,500	2,480,300
ROE		48.65%	44.46%	58.73%	50.82%	58.64%	59.91%	66.61%	65.69%	62.16%	76.99%	94.20%	88.31%	109.79%	115.45%	137.26%	179.72%	319.09%	234.97%	282.08%	252.24%

December 31, 2023 calculation

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

To analyze Lilly(Eli) & Co's return on equity (ROE) based on the provided data, we can observe fluctuations in the ROE over the past eight quarters. The ROE has ranged from a low of 44.46% in Q3 2023 to a high of 66.61% in Q2 2022.

The ROE trend shows variability but generally indicates a strong performance in generating profit from shareholders' equity. The company's ability to efficiently utilize its equity capital to generate earnings for shareholders has been evident, with ROE consistently exceeding 50% in most quarters.

However, the slight decline in the most recent quarters raises a potential concern, as it may indicate a decrease in profitability relative to the amount of equity invested by shareholders. It would be essential for investors and stakeholders to further investigate the factors contributing to this trend and assess the company's overall financial health and performance.

Overall, Lilly(Eli) & Co's ROE performance suggests a historically healthy profitability and efficiency in utilizing shareholder equity, but ongoing monitoring and analysis are necessary to ensure sustainable financial success.