Eli Lilly (LLY) Financial Evaluation

1. Revenue Growth

For Q2 2024, Eli Lilly reported total revenue of $11.30 billion, up from $8.31 billion in Q2 2023. This represents a 36% year-over-year increase. The year-to-date revenue also saw significant growth, with total revenues for the first half of 2024 reaching $20.07 billion, a 31% increase compared to $15.27 billion in the same period of 2023.

Basic Math Calculation:

Revenue Growth Rate = (Current Year Revenue - Previous Year Revenue) / Previous Year Revenue * 100
For Q2:
Growth Rate = (11.30 - 8.31) / 8.31 * 100 ≈ 36%

2. Earnings per Share (EPS)

Eli Lilly’s EPS for Q2 2024 was $3.28, a substantial increase from $1.95 in Q2 2023, marking a 68% increase. On a non-GAAP basis, EPS rose to $3.92, compared to $2.11 in the prior year, which is an 86% increase.

Basic Math Calculation:

EPS Growth Rate = (Current Year EPS - Previous Year EPS) / Previous Year EPS * 100
For Q2:
EPS Growth Rate = (3.28 - 1.95) / 1.95 * 100 ≈ 68%

3. Valuation Ratios

Eli Lilly’s market capitalization stands at approximately $864.25 billion, with a price-to-earnings (P/E) ratio of 113.59. This P/E ratio suggests that the stock is valued highly compared to its earnings, indicating strong investor expectations for future growth.

• Forward P/E Ratio: 40.43
• Price-to-Sales Ratio: 22.2

4. Profit Margins

The company reported an operating margin of 34.50% and a profit margin of 18.86%, demonstrating strong profitability and efficient operations.

Summary

Eli Lilly shows strong financial health with impressive revenue growth and earnings increases, as reflected in the growth rates calculated above. With a robust pipeline of products and strategic positioning in the healthcare sector, Eli Lilly appears to be a solid investment based on its current financial metrics.

For more detailed information, you can explore their investor relations page here.