Stock Analysis on Net
Stock Analysis on Net

Eli Lilly & Co. (NYSE:LLY)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Eli Lilly & Co., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 3,312,000 3,017,900 2,153,600 938,500 567,600
Foreign 1,430,300 613,000 547,700 466,000 650,400
State 31,200 24,300 45,500 (28,400) (47,300)
Current tax expense 4,773,500 3,655,200 2,746,800 1,376,100 1,170,700
Federal (2,178,700) (2,369,000) (1,992,400) (977,500) (97,400)
Foreign (473,100) 34,200 (78,200) 174,600 (16,600)
State (31,300) (6,200) (114,600) 600 (20,500)
Deferred tax benefit (2,683,100) (2,341,000) (2,185,200) (802,300) (134,500)
Income taxes 2,090,400 1,314,200 561,600 573,800 1,036,200

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Eli Lilly & Co. current tax expense increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax benefit Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Eli Lilly & Co. deferred tax benefit decreased from 2022 to 2023 and from 2023 to 2024.
Income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Eli Lilly & Co. income taxes increased from 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

Eli Lilly & Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 16.49% 20.05% 8.25% 9.32% 14.33%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Eli Lilly & Co. effective income tax rate increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Components of Deferred Tax Assets and Liabilities

Eli Lilly & Co., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Capitalized research and development 4,598,700 2,997,500 1,615,400 275,100 135,200
Purchases of intangible assets 1,781,400 1,981,900 2,071,300 2,347,400 2,560,600
Sales rebates and discounts 1,775,700 1,632,500 1,312,900 832,300 461,300
Correlative tax adjustments 1,604,300 1,031,300 752,500 560,800 404,200
Tax loss and other tax carryforwards 586,900 527,200 626,000 645,400 488,300
Tax credit carryforwards 577,000 577,000 477,600 463,700 523,500
Compensation and benefits 565,200 521,400 427,900 634,700 1,045,600
Foreign tax redeterminations 334,800 323,700 267,800 274,900 242,800
Operating lease liabilities 240,500 253,300 147,500 150,000 150,700
Other 358,600 463,400 361,000 477,900 605,800
Gross deferred tax assets 12,423,100 10,309,200 8,059,900 6,662,200 6,618,000
Valuation allowances (963,700) (913,500) (775,100) (875,600) (816,300)
Deferred tax assets 11,459,400 9,395,700 7,284,800 5,786,600 5,801,700
Intangibles (1,176,400) (1,338,200) (1,387,900) (1,516,100) (1,465,700)
Earnings of foreign subsidiaries (773,100) (796,600) (1,226,000) (1,583,300) (1,905,300)
Prepaid employee benefits (611,000) (460,600) (546,500) (560,600) (410,100)
Property and equipment (557,600) (495,200) (433,500) (338,700) (315,200)
Operating lease assets (219,100) (237,100) (130,700) (132,600) (134,300)
Financial instruments (137,300) (75,100) (215,000) (303,000) (216,900)
Inventories (58,200) (619,500) (639,500) (596,400) (623,700)
Deferred tax liabilities (3,532,700) (4,022,300) (4,579,100) (5,030,700) (5,071,200)
Deferred tax assets (liabilities), net 7,926,700 5,373,400 2,705,700 755,900 730,500

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Eli Lilly & Co. gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Eli Lilly & Co. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Eli Lilly & Co. deferred tax assets (liabilities), net increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Eli Lilly & Co., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets 8,000,600 5,477,300 2,792,900 2,489,300 2,830,400
Deferred tax liabilities 73,900 103,900 87,300 1,733,700 2,099,900

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Eli Lilly & Co. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Eli Lilly & Co. deferred tax liabilities increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Eli Lilly & Co., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 78,714,900 64,006,300 49,489,800 48,806,000 46,633,100
Less: Noncurrent deferred tax assets, net 8,000,600 5,477,300 2,792,900 2,489,300 2,830,400
Total assets (adjusted) 70,714,300 58,529,000 46,696,900 46,316,700 43,802,700
Adjustment to Total Liabilities
Total liabilities (as reported) 64,443,300 53,142,600 38,714,400 39,651,200 40,807,900
Less: Noncurrent deferred tax liabilities, net 73,900 103,900 87,300 1,733,700 2,099,900
Total liabilities (adjusted) 64,369,400 53,038,700 38,627,100 37,917,500 38,708,000
Adjustment to Total Eli Lilly And Company Shareholders’ Equity
Total Eli Lilly and Company shareholders’ equity (as reported) 14,192,100 10,771,900 10,649,800 8,979,200 5,641,600
Less: Net deferred tax assets (liabilities) 7,926,700 5,373,400 2,705,700 755,900 730,500
Total Eli Lilly and Company shareholders’ equity (adjusted) 6,265,400 5,398,500 7,944,100 8,223,300 4,911,100
Adjustment to Net Income
Net income (as reported) 10,590,000 5,240,400 6,244,800 5,581,700 6,193,700
Add: Deferred income tax expense (benefit) (2,683,100) (2,341,000) (2,185,200) (802,300) (134,500)
Net income (adjusted) 7,906,900 2,899,400 4,059,600 4,779,400 6,059,200

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Eli Lilly & Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Eli Lilly & Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 23.51% 15.36% 21.88% 19.71% 25.24%
Adjusted net profit margin 17.55% 8.50% 14.22% 16.88% 24.69%
Total Asset Turnover
Reported total asset turnover 0.57 0.53 0.58 0.58 0.53
Adjusted total asset turnover 0.64 0.58 0.61 0.61 0.56
Financial Leverage
Reported financial leverage 5.55 5.94 4.65 5.44 8.27
Adjusted financial leverage 11.29 10.84 5.88 5.63 8.92
Return on Equity (ROE)
Reported ROE 74.62% 48.65% 58.64% 62.16% 109.79%
Adjusted ROE 126.20% 53.71% 51.10% 58.12% 123.38%
Return on Assets (ROA)
Reported ROA 13.45% 8.19% 12.62% 11.44% 13.28%
Adjusted ROA 11.18% 4.95% 8.69% 10.32% 13.83%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Eli Lilly & Co. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eli Lilly & Co. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Eli Lilly & Co. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Eli Lilly & Co. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Eli Lilly & Co. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Eli Lilly & Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 10,590,000 5,240,400 6,244,800 5,581,700 6,193,700
Revenue 45,042,700 34,124,100 28,541,400 28,318,400 24,539,800
Profitability Ratio
Net profit margin1 23.51% 15.36% 21.88% 19.71% 25.24%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 7,906,900 2,899,400 4,059,600 4,779,400 6,059,200
Revenue 45,042,700 34,124,100 28,541,400 28,318,400 24,539,800
Profitability Ratio
Adjusted net profit margin2 17.55% 8.50% 14.22% 16.88% 24.69%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 10,590,000 ÷ 45,042,700 = 23.51%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 7,906,900 ÷ 45,042,700 = 17.55%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Eli Lilly & Co. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Revenue 45,042,700 34,124,100 28,541,400 28,318,400 24,539,800
Total assets 78,714,900 64,006,300 49,489,800 48,806,000 46,633,100
Activity Ratio
Total asset turnover1 0.57 0.53 0.58 0.58 0.53
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 45,042,700 34,124,100 28,541,400 28,318,400 24,539,800
Adjusted total assets 70,714,300 58,529,000 46,696,900 46,316,700 43,802,700
Activity Ratio
Adjusted total asset turnover2 0.64 0.58 0.61 0.61 0.56

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 45,042,700 ÷ 78,714,900 = 0.57

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 45,042,700 ÷ 70,714,300 = 0.64

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eli Lilly & Co. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total assets 78,714,900 64,006,300 49,489,800 48,806,000 46,633,100
Total Eli Lilly and Company shareholders’ equity 14,192,100 10,771,900 10,649,800 8,979,200 5,641,600
Solvency Ratio
Financial leverage1 5.55 5.94 4.65 5.44 8.27
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 70,714,300 58,529,000 46,696,900 46,316,700 43,802,700
Adjusted total Eli Lilly and Company shareholders’ equity 6,265,400 5,398,500 7,944,100 8,223,300 4,911,100
Solvency Ratio
Adjusted financial leverage2 11.29 10.84 5.88 5.63 8.92

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Total Eli Lilly and Company shareholders’ equity
= 78,714,900 ÷ 14,192,100 = 5.55

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Eli Lilly and Company shareholders’ equity
= 70,714,300 ÷ 6,265,400 = 11.29

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Eli Lilly & Co. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 10,590,000 5,240,400 6,244,800 5,581,700 6,193,700
Total Eli Lilly and Company shareholders’ equity 14,192,100 10,771,900 10,649,800 8,979,200 5,641,600
Profitability Ratio
ROE1 74.62% 48.65% 58.64% 62.16% 109.79%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 7,906,900 2,899,400 4,059,600 4,779,400 6,059,200
Adjusted total Eli Lilly and Company shareholders’ equity 6,265,400 5,398,500 7,944,100 8,223,300 4,911,100
Profitability Ratio
Adjusted ROE2 126.20% 53.71% 51.10% 58.12% 123.38%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Total Eli Lilly and Company shareholders’ equity
= 100 × 10,590,000 ÷ 14,192,100 = 74.62%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total Eli Lilly and Company shareholders’ equity
= 100 × 7,906,900 ÷ 6,265,400 = 126.20%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Eli Lilly & Co. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income 10,590,000 5,240,400 6,244,800 5,581,700 6,193,700
Total assets 78,714,900 64,006,300 49,489,800 48,806,000 46,633,100
Profitability Ratio
ROA1 13.45% 8.19% 12.62% 11.44% 13.28%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 7,906,900 2,899,400 4,059,600 4,779,400 6,059,200
Adjusted total assets 70,714,300 58,529,000 46,696,900 46,316,700 43,802,700
Profitability Ratio
Adjusted ROA2 11.18% 4.95% 8.69% 10.32% 13.83%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 10,590,000 ÷ 78,714,900 = 13.45%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 7,906,900 ÷ 70,714,300 = 11.18%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Eli Lilly & Co. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.