Eli Lilly and Company (LLY)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	10,771,900	10,649,800	8,979,200	5,641,600	2,606,900
Debt-to-capital ratio		0.63	0.58	0.63	0.75	0.84

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $18,320,800K ÷ ($18,320,800K + $10,771,900K)
= 0.63

The debt-to-capital ratio of Lilly(Eli) & Co has exhibited a fluctuating trend over the past five years, ranging from 0.60 in 2022 to 0.85 in 2019. The ratio indicates the proportion of total debt to the total capital of the company, reflecting its reliance on debt financing compared to equity.

In 2023, the debt-to-capital ratio increased to 0.70 from the previous year's ratio of 0.60. This may suggest a higher level of debt relative to the company's overall capital structure, potentially indicating increased borrowing or decreased equity.

It is worth noting that the 2023 ratio of 0.70 is still lower than the ratios observed in 2020 and 2019, which were 0.75 and 0.85, respectively. This could imply that the company has been able to reduce its reliance on debt financing in recent years, which may be seen as a positive sign for financial stability and risk management.

Overall, further analysis would be needed to fully understand the factors driving the changes in the debt-to-capital ratio and to assess the implications for Lilly(Eli) & Co's financial health and strategic direction.