Eli Lilly and Company (LLY)

Debt-to-equity 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-equity ratio		1.70	1.38	1.71	2.94	5.30

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $18,320,800K ÷ $10,771,900K
= 1.70

The debt-to-equity ratio of Lilly(Eli) & Co has shown fluctuations over the past five years. In 2019, the ratio was significantly high at 5.88, indicating a higher reliance on debt to finance its operations compared to equity. The ratio decreased to 2.94 in 2020 but remained relatively high, suggesting a continued reliance on debt financing.

In 2021, the debt-to-equity ratio decreased further to 1.88, which could indicate a decrease in the company's debt levels or an increase in equity. However, the ratio increased to 1.52 in 2022, indicating a lower proportion of debt to equity compared to the previous year.

The most recent data for 2023 shows the debt-to-equity ratio at 2.34, which is higher compared to 2022 but lower than the ratio in 2019 and 2020. This suggests that the company's debt levels have increased in 2023 relative to 2022.

Overall, the trend in the debt-to-equity ratio for Lilly(Eli) & Co shows some volatility, with fluctuations in the company's capital structure over the past five years. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile.