Eli Lilly and Company (LLY)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,962,800	6,096,400	7,191,400	8,123,700	7,040,500	6,573,900	7,669,100	6,632,000	7,138,000	6,878,900	6,560,800	7,069,500	6,495,200	7,132,200	7,330,100	7,381,300	7,589,500	6,790,200	6,776,600	6,621,400
Interest expense (ttm)	US$ in thousands	179,600	317,800	442,400	562,700	485,900	431,700	388,600	349,500	331,600	329,000	331,100	336,800	339,700	347,500	353,500	354,900	359,600	366,300	384,100	406,700
Interest coverage		27.63	19.18	16.26	14.44	14.49	15.23	19.74	18.98	21.53	20.91	19.82	20.99	19.12	20.52	20.74	20.80	21.11	18.54	17.64	16.28

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,962,800K ÷ $179,600K
= 27.63

The interest coverage ratio of Eli Lilly and Company has been relatively healthy and stable over the past few years based on the provided data. The ratio indicates the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT).

From March 31, 2020, to December 31, 2024, the interest coverage ratio has fluctuated within a range between approximately 14.44 to 27.63. This range generally suggests that Eli Lilly has sufficient earnings to cover its interest expenses comfortably.

The highest interest coverage ratio was observed on December 31, 2024, at 27.63, indicating a strong ability to meet interest payments. However, there was a decrease in the ratio in the following quarters, reaching a low of 14.49 on December 31, 2023. This drop may signal a potential challenge in meeting interest obligations from earnings, although the ratio improved in subsequent periods.

Overall, Eli Lilly and Company's interest coverage ratios demonstrate a consistent ability to cover interest expenses with its operating income, reflecting financial stability and management's effective handling of debt obligations.