Eli Lilly and Co (BUE:LLY) ROCE %

: 29.60% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Eli Lilly and Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 29.60%.

Eli Lilly and Co ROCE % Historical Data

The historical data trend for Eli Lilly and Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Eli Lilly and Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

23.75

27.92

21.20

27.10

27.22

Eli Lilly and Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																29.71	20.21	26.58	7.29	29.60

Eli Lilly and Co ROCE % Calculation

Eli Lilly and Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	2541620.502	/	( ( (8296964.74 - 2873219.15)	+	(23106274.321 - 9852845.209) )	/ 2 )
	=	2541620.502	/	( (5423745.59	+	13253429.112)	/ 2 )
	=	2541620.502	/	9338587.351
	=	27.22 %

Eli Lilly and Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3822268.004	/	( ( (20267529.783 - 7698270.302)	+	(23106274.321 - 9852845.209) )	/ 2 )
	=	3822268.004	/	( ( 12569259.481	+	13253429.112 )	/ 2 )
	=	3822268.004	/	12911344.2965
	=	29.60 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Eli Lilly and Co (BUE:LLY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Eli Lilly and Co (BUE:LLY) Business Description

Industry

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Traded in Other Exchanges

LLY:USA LLY:Mexico 1LLY:Italy LLY:Germany LLY:Germany LLY:Germany LLY:Germany LLY:Switzerland LLY:Canada LILY34:Brazil LLYC:Austria

Address

Lilly Corporate Center, Indianapolis, IN, USA, 46285

Website

https://www.lilly.com

Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio for cancer; Mounjaro, Zepbound, Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.