LLYNEUTRAL

Return on Equity (ROE)

107.5%

Higher than 94% of Healthcare sector peers

Updated 25h ago

Sector Performance

94th percentile

LLY

107.5%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity; Eli Lilly’s current ROE of 107.5% means it earned more than a full dollar of profit for every dollar of equity invested.

This is well above the healthcare sector median of 8.9%, placing the company in the 94th percentile among its peers. However, the trend data is not available — the year-over-year change and quarter-over-quarter change are both marked as N/A, and only a single historical value (107.5%) has been provided. Because there is no trend to assess, the exceptionally high level of ROE suggests a very efficient use of equity, but the lack of historical context prevents evaluating whether this performance is sustainable or improving. For an investor, the combination of a stellar level with no trend data creates a mixed picture: the metric signals strong current profitability, but with no direction to confirm stability or growth. This high ROE generally supports a positive view, but it does not contradict the overall NEUTRAL verdict because other factors—such as valuation or growth risks—likely offset the impressive return on equity.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LLY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does LLY's Return on Equity (ROE) compare to its sector?

LLY's Return on Equity (ROE) of 107.5% compares to a Healthcare sector median of 8.9%, placing it in the 94th percentile.

Who are LLY's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.