Eli Lilly And(Lly) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios

Growth Trend (Last 5 Years)

Growth - payables turnover

This chart shows the historical trend of payables turnover for LLY compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Payables Turnover

Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.

Interpretation:
• In '2021', LLY's payables turnover was 2.73, indicating how promptly the company pays its suppliers. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 1.98.
• In '2022', LLY's payables turnover was 2.35, indicating how promptly the company pays its suppliers. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 1.99. Industry average increased by 0.01 compared to previous year.
• In '2023', LLY's payables turnover was 2.11, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 1.93. Industry average declined by 0.05 from previous year.
• In '2024', LLY's payables turnover was 2.02, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.39. Industry average increased by 0.45 compared to previous year.
Overall, LLY's payables turnover has consistently declined during the past 4 years.

Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable

Good Range: Ranges 5-15 depending on industry.