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LLY (Eli Lilly and Co) Debt-to-EBITDA : 3.46 (As of Sep. 2024)


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What is Eli Lilly and Co Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Eli Lilly and Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $2,074 Mil. Eli Lilly and Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $29,045 Mil. Eli Lilly and Co's annualized EBITDA for the quarter that ended in Sep. 2024 was $8,992 Mil. Eli Lilly and Co's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 3.46.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Eli Lilly and Co's Debt-to-EBITDA or its related term are showing as below:

LLY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.77   Med: 1.96   Max: 3.33
Current: 2.57

During the past 13 years, the highest Debt-to-EBITDA Ratio of Eli Lilly and Co was 3.33. The lowest was 1.77. And the median was 1.96.

LLY's Debt-to-EBITDA is ranked worse than
61.74% of 656 companies
in the Drug Manufacturers industry
Industry Median: 1.78 vs LLY: 2.57

Eli Lilly and Co Debt-to-EBITDA Historical Data

The historical data trend for Eli Lilly and Co's Debt-to-EBITDA 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.

* Premium members only.

Eli Lilly and Co Debt-to-EBITDA Chart

Eli Lilly and Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.22 1.86 2.10 1.88 2.94

Eli Lilly and Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.24 2.08 2.10 1.76 3.46

Competitive Comparison of Eli Lilly and Co's Debt-to-EBITDA

For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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's Debt-to-EBITDA Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Eli Lilly and Co's Debt-to-EBITDA falls into.



Eli Lilly and Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Eli Lilly and Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(6904.5 + 18320.8) / 8567.8
=2.94

Eli Lilly and Co's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2074.3 + 29045.4) / 8991.6
=3.46

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2024) EBITDA data.


Eli Lilly and Co  (NYSE:LLY) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Eli Lilly and Co Debt-to-EBITDA Related Terms

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


Eli Lilly and Co Business Description

Address
Lilly Corporate Center, Indianapolis, IN, USA, 46285
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 cardiometabolic; 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
Johna Norton officer: Senior VP, Global Quality 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