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

LLY (Eli Lilly and Co) Interest Coverage : 23.01 (As of Sep. 2024)


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

What is Eli Lilly and Co Interest Coverage?

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 Sep. 2024 was $4,434 Mil. Eli Lilly and Co's Interest Expense for the three months ended in Sep. 2024 was $-193 Mil. Eli Lilly and Co's interest coverage for the quarter that ended in Sep. 2024 was 23.01. 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: 22.56


LLY's Interest Coverage is ranked better than
58.51% of 658 companies
in the Drug Manufacturers industry
Industry Median: 13.2 vs LLY: 22.56

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.

* Premium members only.

Eli Lilly and Co Interest Coverage Chart

Eli Lilly and Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.98 19.75 23.35 26.10 22.20

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
Interest Coverage 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 27.49 25.62 15.23 24.07 23.01

Competitive Comparison of Eli Lilly and Co's Interest Coverage

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's Interest Coverage Distribution in the Drug Manufacturers Industry

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 Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Eli Lilly and Co's Interest Expense was $-193 Mil. Its Operating Income was $4,434 Mil. And its Long-Term Debt & Capital Lease Obligation was $29,045 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*4434.4/-192.7
=23.01

* 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.

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 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