Eli Lilly and Company (LLY)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	9,347,100	8,580,500	8,525,100	7,025,000
Interest expense (ttm)	US$ in thousands	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	400,700	362,000	315,400	267,800
Interest coverage		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	23.33	23.70	27.03	26.23

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,040,500K ÷ $485,900K
= 14.49

The interest coverage ratio for Lilly(Eli) & Co has remained consistently high over the past eight quarters, ranging between 27.26 and 33.79. This indicates the company's strong ability to generate earnings before interest and taxes (EBIT) relative to its interest expenses. A higher interest coverage ratio suggests that the company has sufficient earnings to comfortably meet its interest obligations.

The average interest coverage ratio for Lilly(Eli) & Co over the period is 30.35, indicating a robust financial position and a low risk of default on its debt obligations. This stability in the interest coverage ratio reflects the company's ability to manage its debt efficiently and indicates a healthy financial performance.

Overall, the consistently high interest coverage ratio of Lilly(Eli) & Co suggests that the company is in a strong financial position with the ability to comfortably cover its interest payments, providing a positive outlook for investors and creditors alike.