Eli Lilly and CoHAM:LLY +3.96%98 Interest Coverage is 38.65 as of Mar. 2026, which is 82% above its 10-year median of 21.25. GuruFocus rates HAM:LLY with a GF Score™ of 98/100 and a GF Value™ of €1,212.75 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 685 Drug Manufacturers companies, Eli Lilly and Co ranks better than 70.95% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Eli Lilly and Co's
Operating Income
for the
three
months ended in Mar. 2026 was €8,458 Mil. Eli Lilly and Co's Interest Expense for the
three
months ended in Mar. 2026 was €-219 Mil.
Eli Lilly and Co's interest coverage for the quarter that ended in Mar. 2026 was 38.65.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Eli Lilly and Co's Interest Coverage or its related term are showing as below:
HAM:LLY'
s Interest Coverage Range Over the Past 10 Years
Min: 14.45 Med: 21.25 Max: 50.14
Current: 50.14
HAM:LLY's Interest Coverage is ranked better than 70.95% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs HAM:LLY: 50.14
Eli Lilly and Co (HAM:LLY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Eli Lilly and Co Interest Coverage Related Terms
Eli Lilly and Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HAM:LLY vs JNJ, ABBV, MRK: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eli Lilly and Co Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Eli Lilly and Co (HAM:LLY) has a Interest Coverage of 38.65 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Eli Lilly and Co and its competitors. This is 82% above median its historical median of 21.25. Over the past decade, Eli Lilly and Co's Interest Coverage has ranged from 14.45 to 50.14. According to the industry distribution chart, Eli Lilly and Co ranks #199 out of 685 companies in the Drug Manufacturers industry, placing it in the top 29.1%.
Is Eli Lilly and Co's Interest Coverage too high?
Eli Lilly and Co's current Interest Coverage of 38.65 is 82% above median its 10-year median of 21.25. Over the past 10 years, this metric has ranged from a low of 14.45 to a high of 50.14. The Drug Manufacturers industry median Interest Coverage is 12.78. Eli Lilly and Co's value of 38.65 is 202.4% above this industry median. Based on the distribution chart, Eli Lilly and Co ranks #199 out of 685 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Eli Lilly and Co has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eli Lilly and Co's Interest Coverage compare to JNJ and ABBV?
According to the Drug Manufacturers industry distribution chart, Eli Lilly and Co ranks #199 out of 685 companies for Interest Coverage. This puts Eli Lilly and Co in the upper half of its industry. The industry median Interest Coverage is 12.78. Eli Lilly and Co's value of 38.65 is 202.4% above this benchmark. Historically, Eli Lilly and Co's own Interest Coverage has ranged from 14.45 to 50.14 over the past decade. While the company's 10-year median is 21.25 vs. the industry median of 12.78, Eli Lilly and Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eli Lilly and Co's current Interest Coverage of 38.65 is 202.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Eli Lilly and Co and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eli Lilly and Co's current Interest Coverage is 38.65, which is 82% above median its own 10-year median of 21.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eli Lilly and Co stock overvalued right now?
Based on GuruFocus' analysis, Eli Lilly and Co (HAM:LLY) is currently considered Modestly Undervalued. The stock's GF Value™ is €1,212.75, compared to a current price of €1,039.40 — trading 14.3% below its estimated fair value. The current Interest Coverage is 38.65, which is 82% above median its 10-year median of 21.25 and 202.4% above the Drug Manufacturers industry median of 12.78. Eli Lilly and Co's overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Eli Lilly and Co (HAM:LLY), the current Interest Coverage is 38.65 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eli Lilly and Co (HAM:LLY) Overvalued in 2026?
Based on GuruFocus' analysis, Eli Lilly and Co stock appears to be undervalued.
The current stock price of €1,039.40 is trading 14.3% below its estimated GF Value™ of €1,212.75.
GuruFocus considers Eli Lilly and Co to be Modestly Undervalued.
Key valuation signals for HAM:LLY:
Interest Coverage: 38.65 (82% above median its 10-year median of 21.25)
GF Value™: €1,212.75 vs. price of €1,039.40 (14.3% below fair value)
Industry Position: 202.4% above the Drug Manufacturers median (#199 of 685)
No single metric tells the full story. See the HAM:LLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio and Jaypirca for cancer; Mounjaro, Zepbound, Foundayo, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic; and Taltz and Olumiant for immunology.
98GF Score
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