LLYNEUTRAL

Gross Margin

81.9%

Updated 25h ago

Sector Performance

95th percentile

LLY

81.9%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

Gross margin is the percentage of revenue a company retains after paying the direct costs of producing its goods.

At 81.9%, Eli Lilly keeps roughly 82 cents of every dollar of sales before accounting for other expenses. This is far above the sector median of 44.7%, placing Lilly in the 95th percentile among its peers. The year-over-year change is not available, the quarter-over-quarter change is not available, and there is no trend data for the last eight quarters, so the metric’s direction cannot be assessed. A very high gross margin with no observable trend presents a low risk of cost pressure but also provides no recent evidence of whether this advantage is widening or narrowing. The combination of an exceptional level and absent trend gives a positive signal for profitability, but the lack of movement limits the investment opportunity tied to improvement. This strong margin contradicts the overall NEUTRAL verdict, as a 95th-percentile gross margin typically warrants a more favorable view unless other factors strongly offset it.

Frequently Asked Questions

What does the Gross Margin tell investors about LLY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LLY's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.