Eli Lilly and Company (LLY)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	18,320,800	17,923,600	18,158,400	18,880,500	14,737,500	14,143,800	14,692,000	15,152,900	15,346,400	15,522,400	14,736,600	16,199,600	16,586,600	16,334,600	15,064,400	13,982,300	13,817,900	13,662,200	13,717,600	13,610,200
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
Debt-to-capital ratio		0.63	0.62	0.62	0.63	0.58	0.58	0.63	0.62	0.63	0.67	0.70	0.70	0.75	0.77	0.79	0.82	0.84	0.80	0.83	0.85

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 shown some variability over the past eight quarters. The ratio increased from 0.60 in Q4 2022 to 0.70 in Q4 2023, indicating a higher reliance on debt compared to total capital during this period. Subsequently, the ratio decreased to 0.64 in Q3 2023 and remained relatively stable around 0.63 in Q2 and Q1 2023.

Overall, the company's debt-to-capital ratio has fluctuated within a reasonable range between 0.60 and 0.70 over the past two years, suggesting a consistent level of leveraging. However, it is essential to monitor this ratio closely to ensure that the company's debt levels are sustainable and in line with its capital structure objectives.