GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Eli Lilly and Co (NYSE:LLY) » Definitions » Gross Margin %

LLY (Eli Lilly and Co) Gross Margin % : 81.02% (As of Sep. 2024)


View and export this data going back to 1970. Start your Free Trial

What is Eli Lilly and Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eli Lilly and Co's Gross Profit for the three months ended in Sep. 2024 was $9,268 Mil. Eli Lilly and Co's Revenue for the three months ended in Sep. 2024 was $11,439 Mil. Therefore, Eli Lilly and Co's Gross Margin % for the quarter that ended in Sep. 2024 was 81.02%.


The historical rank and industry rank for Eli Lilly and Co's Gross Margin % or its related term are showing as below:

LLY' s Gross Margin % Range Over the Past 10 Years
Min: 73.09   Med: 77.22   Max: 80.75
Current: 80.75


During the past 13 years, the highest Gross Margin % of Eli Lilly and Co was 80.75%. The lowest was 73.09%. And the median was 77.22%.

LLY's Gross Margin % is ranked better than
93.06% of 966 companies
in the Drug Manufacturers industry
Industry Median: 47.005 vs LLY: 80.75

Eli Lilly and Co had a gross margin of 81.02% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Eli Lilly and Co was -0.20% per year.


Eli Lilly and Co Gross Margin % Historical Data

The historical data trend for Eli Lilly and Co's Gross Margin % 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 Gross Margin % Chart

Eli Lilly and Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.85 77.66 74.18 76.77 79.25

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
Gross Margin % 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 80.42 80.88 80.91 80.80 81.02

Competitive Comparison of Eli Lilly and Co's Gross Margin %

For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Eli Lilly and Co's Gross Margin % falls into.



Eli Lilly and Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=27041.9 / 34124.1
=(Revenue - Cost of Goods Sold) / Revenue
=(34124.1 - 7082.2) / 34124.1
=79.25 %

Eli Lilly and Co's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=9268.3 / 11439.1
=(Revenue - Cost of Goods Sold) / Revenue
=(11439.1 - 2170.8) / 11439.1
=81.02 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Eli Lilly and Co  (NYSE:LLY) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Eli Lilly and Co had a gross margin of 81.02% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Eli Lilly and Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Eli Lilly and Co's Gross Margin % 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