Eli Lilly and Company (LLY)

Financial leverage 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
Total assets	US$ in thousands	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	39,286,100	37,893,100	38,666,400	38,006,800
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
Financial leverage ratio		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	15.07	11.20	13.91	15.32

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $64,006,300K ÷ $10,771,900K
= 5.94

Based on the data provided, Lilly(Eli) & Co's financial leverage ratio has exhibited fluctuations over the past eight quarters. The financial leverage ratio indicates the proportion of the company's total assets that are financed by debt rather than equity.

The trend in the financial leverage ratio suggests that the company has been increasing its reliance on debt to finance its operations. The ratio has been on an upward trajectory from Q2 2022 to Q1 2023, reaching its peak at 5.94 in Q4 2023. This may indicate that Lilly(Eli) & Co has been taking on more debt to fund its activities during this period.

It is important to note that a higher financial leverage ratio typically implies higher financial risk, as the company may have a higher debt burden to service. On the other hand, a lower ratio indicates a more conservative financing structure with a greater reliance on equity.

Investors and stakeholders should closely monitor Lilly(Eli) & Co's financial leverage ratio to assess the company's risk profile and ability to meet its debt obligations. Additionally, management should consider the implications of high financial leverage on the company's financial stability and long-term sustainability.