Eli Lilly and Company (LLY)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	78,714,900	64,006,300	49,489,800	48,806,000	46,633,100
Total stockholders’ equity	US$ in thousands	14,192,100	10,771,900	10,649,800	8,979,200	5,641,600
Financial leverage ratio		5.55	5.94	4.65	5.44	8.27

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $78,714,900K ÷ $14,192,100K
= 5.55

The financial leverage ratio of Eli Lilly and Company has shown a decreasing trend over the past five years. In December 2020, the financial leverage ratio was 8.27, indicating a high level of debt relative to equity. However, by December 2024, the ratio had improved to 5.55, suggesting a lower reliance on debt financing. This reduction in the financial leverage ratio may reflect efforts by the company to strengthen its financial position and reduce financial risk. It is important to continue monitoring this ratio to assess the company's ability to meet its debt obligations and manage its capital structure effectively.