Eli Lilly and Co (Eli Lilly and Co) Interest Coverage

: 25.62 (As of Dec. 2023)

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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 Dec. 2023 was $3,540 Mil. Eli Lilly and Co's Interest Expense for the three months ended in Dec. 2023 was $-138 Mil. Eli Lilly and Co's interest coverage for the quarter that ended in Dec. 2023 was 25.62. 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:

LLY' s Interest Coverage Range Over the Past 10 Years
Min: 14.98 Med: 22.24 Max: 26.1
Current: 22.68

LLY's Interest Coverage is ranked better than
59.71% of 690 companies
in the Drug Manufacturers industry
Industry Median: 12.175 vs LLY: 22.68

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Eli Lilly and Co Interest Coverage Historical Data

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.

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Eli Lilly and Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

14.98

19.75

23.35

26.10

22.20

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
Interest Coverage																29.61	16.68	19.44	27.49	25.62

Competitive 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 Distribution

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.

Eli Lilly and Co Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Eli Lilly and Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Eli Lilly and Co's Interest Expense was $-486 Mil. Its Operating Income was $10,787 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,321 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	10787.3	/	-485.9
	=	22.20

Eli Lilly and Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Eli Lilly and Co's Interest Expense was $-138 Mil. Its Operating Income was $3,540 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,321 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	3540	/	-138.2
	=	25.62

The higher the ratio, the stronger the company's Financial Strength is.

Eli Lilly and Co (NYSE: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

Thank you for viewing the detailed overview of Eli Lilly and Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Eli Lilly and Co (Eli Lilly and Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Eli Lilly and Co (NYSE:LLY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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

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.

Executives

Lilly Endowment Inc	10 percent owner	2801 NORTH MERIDIAN ST, INDIANAPOLIS IN 46208
Donald A Zakrowski	officer: Chief Accounting Officer	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Alonzo Weems	officer: SVP, ERM & CECO	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Patrik Jonsson	officer: SVP and Pres., Lilly Bio-Meds	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Anne E. White	officer: SVP & Pres-Lilly Oncology	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Eric Dozier	officer: EVP, HR & Diversity	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Jackson P Tai	director
Mary Lynne Hedley	director	C/O TESARO, INC., 1000 WINTER ST., STE 3300, WALTHAM MA 02451
Marschall S Runge	director	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Naarden Jacob Van	officer: SVP, CEO LoxoONC, Pres LlyONC	C/O ELI LILLY & CO, LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Diogo Rau	officer: SVP & CIDO	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Edgardo Hernandez	officer: SVP & Pres., Mfg. Operations	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Kimberly H Johnson	director	C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Anat Ashkenazi	officer: SVP & CFO	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Gabrielle Sulzberger	director	450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017