Aureus
COkay

Eli Lilly and Company(LLY)

C

Financial data as of Dec 31, 2025Improving · Healthcare

FCF Margin8.2%Free Cash Flow / Revenue
Cash Conversion81.5%Operating CF / Net Income
Free Cash Flow$6.0B
Revenue$65.2B
Net Cash-$35.2BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio1.58Adequate short-term liquidity
YoY FCF Growth+100.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-1High debt-to-FCF ratio (8.0x)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.61)
→
+0.5Strong revenue growth (55.5% YoY) offsets compressed FCF margin
→
FinalC

Analysis Summary

Strengths

  • Strong YoY FCF growth (+100.0%)
  • Strong revenue growth (55.5% YoY)

Concerns

  • Low FCF margin (8.2%)
  • Heavy debt position ($35.2B net debt, 8.0x FCF)
  • High debt-to-FCF ratio (8.0x)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.6B stock-based compensation (10% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.2%
Net Margin31.7%
Operating CF Margin25.8%
CapEx Ratio16.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$35.2BNet debt position
Debt / FCF8.0xElevated debt burden
Current Ratio1.58Strong liquidity
Debt / Equity1.60Moderate leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameEli Lilly and Company
SectorHealthcare
Free Cash Flow$6.0B
Revenue$65.2B
Net Income$20.6B
Operating Cash Flow$16.8B
Capital Expenditure$10.8B
FCF Margin8.2%
Cash Conversion Rate81.5%
Net Margin31.7%
Total Debt$42.5B
Total Cash$7.3B
Net Cash-$35.2B
Current Ratio1.58
Debt / Equity1.60
Debt / FCF8.0x
YoY FCF Growth+100.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance

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