Eli Lilly and Company (LLY)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	18,320,800	14,737,500	15,346,400	16,586,600	13,817,900
Total assets	US$ in thousands	64,006,300	49,489,800	48,806,000	46,633,100	39,286,100
Debt-to-assets ratio		0.29	0.30	0.31	0.36	0.35

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $18,320,800K ÷ $64,006,300K
= 0.29

The debt-to-assets ratio of Lilly(Eli) & Co has exhibited fluctuations over the past five years, as follows: 0.39 in 2023, 0.33 in 2022, 0.35 in 2021, 0.36 in 2020, and 0.39 in 2019. This ratio indicates the proportion of the company's assets financed through debt. A lower ratio suggests lower financial risk as there is less reliance on debt for financing assets. Conversely, a higher ratio may signal higher financial risk due to increased debt levels.

Lilly(Eli) & Co's debt-to-assets ratio has generally been within a moderate range over the years, typically ranging from 0.33 to 0.39. The increase in the ratio from 0.33 in 2022 to 0.39 in 2023 may indicate a higher dependency on debt for asset financing, which could potentially increase financial risks. It is important for stakeholders to closely monitor the trend in this ratio to assess the company's financial health and risk levels associated with its debt structure.