Eli Lilly and Company (LLY)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	28,527,100	18,320,800	14,737,500	15,346,400	16,586,600
Total stockholders’ equity	US$ in thousands	14,192,100	10,771,900	10,649,800	8,979,200	5,641,600
Debt-to-equity ratio		2.01	1.70	1.38	1.71	2.94

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $28,527,100K ÷ $14,192,100K
= 2.01

The debt-to-equity ratio for Eli Lilly and Company has shown fluctuations over the years, indicating changes in its capital structure.

As of December 31, 2020, the ratio was 2.94, which suggests a relatively high level of debt compared to equity. This could imply that the company relied heavily on debt financing during that period.

By the end of 2021, the ratio decreased to 1.71, indicating a reduction in the proportion of debt relative to equity. This could indicate that the company either paid down some debt or increased its equity base.

In 2022, the debt-to-equity ratio fell further to 1.38, showing a continued improvement in the company's leverage position. A lower ratio suggests a healthier balance between debt and equity in the company's capital structure.

However, by the end of 2023, the ratio slightly increased to 1.70, which could imply a possible increase in debt relative to equity. This change may need monitoring to understand the company's financing decisions.

As of December 31, 2024, the ratio rose to 2.01, indicating a higher level of debt compared to equity compared to the previous year. This increase suggests a shift towards a more leveraged position and may warrant further evaluation to assess the company's financial risk and liquidity position.

Overall, the varying debt-to-equity ratios over the years reflect changes in Eli Lilly and Company's financial leverage and capital structure, highlighting the importance of monitoring these ratios to understand the company's financial health and risk profile.