Eli Lilly and Company (LLY)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	78,714,900	75,606,900	71,874,800	63,943,500	64,006,300	57,915,500	54,814,000	53,163,000	49,489,800	47,461,500	47,063,600	46,919,300	48,806,000	48,187,000	47,809,000	46,838,300	46,633,100	43,946,000	41,967,000	41,102,800
Total stockholders’ equity	US$ in thousands	14,192,100	14,240,000	13,562,000	12,812,200	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
Financial leverage ratio		5.55	5.31	5.30	4.99	5.94	5.16	4.95	4.75	4.65	4.71	5.51	5.03	5.44	6.21	7.42	6.79	8.27	9.10	10.25	13.35

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 been on a declining trend over the analyzed period, indicating a strengthening financial position in terms of leverage. The ratio decreased from 13.35 as of March 31, 2020, to 5.55 as of December 31, 2024. This decline suggests a reduction in the company's reliance on debt to finance its operations and investments.

A decreasing financial leverage ratio is generally viewed positively by investors and creditors as it signals improved financial stability and reduced risk of default. It also indicates that the company has been paying off its debt or increasing equity in its capital structure.

Overall, Eli Lilly and Company's decreasing trend in the financial leverage ratio reflects a more conservative approach to managing its capital structure and financial obligations, which may enhance its long-term sustainability and resilience in the face of economic uncertainties.