Ctrl K
Cash conversion is volatile, with OCF/NI swinging from 0.49 to 1.58, and cumulative operating cash flow of $41.7B trails net income of $45.8B over ten quarters, while capex intensity rose to 12.8% of revenue, indicating persistent working capital drags and heavy investment.
Eli Lilly and Company (LLY) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 28.08B | 16.81B | 8.82B | 4.24B | 7.59B | 7.37B | 6.5B | 4.84B | 5.52B | 5.62B | 4.85B | 2.96B | 4.46B | 5.74B | 5.3B | 7.23B | 6.86B | 4.34B | 7.3B | 5.15B | 3.98B | 1.91B | 2.87B | 3.65B | 2.07B | 3.66B | 3.73B | 2.62B | 2.63B | 2.4B | 1.99B |
| Operating CF Margin % | - | 25.8% | 19.58% | 12.43% | 26.58% | 26.01% | 26.49% | 21.67% | 25.7% | 28.11% | 22.86% | 14.85% | 22.73% | 24.81% | 23.47% | 29.79% | 29.71% | 19.85% | 35.81% | 27.66% | 25.34% | 13.07% | 20.71% | 28.98% | 18.69% | 31.72% | 34.35% | 26.19% | 28.47% | 30.05% | 28.46% |
| Operating CF Growth % | 634.88% | 90.67% | 107.96% | -44.1% | 2.98% | 13.33% | 34.38% | -12.45% | -1.62% | 15.76% | 63.63% | -33.51% | -22.26% | 8.11% | -26.67% | 5.51% | 58.15% | -40.57% | 41.54% | 29.64% | 107.77% | -33.31% | -21.31% | 76.11% | -43.45% | -1.87% | 42.44% | -0.38% | 9.56% | 20.54% | 9.14% |
| Net Income | 26.71B | 20.64B | 10.59B | 5.24B | 6.24B | 5.58B | 6.19B | 8.32B | 3.23B | -204.1M | 2.74B | 2.41B | 2.39B | 4.68B | 4.09B | 4.35B | 5.07B | 4.33B | -2.07B | 2.95B | 2.66B | 1.98B | 1.81B | 2.56B | 2.71B | 2.78B | 3.06B | 2.72B | 2.11B | -385.1M | 1.52B |
| Depreciation & Amortization | 2.1B | 2B | 1.77B | 1.53B | 1.52B | 1.55B | 1.32B | 1.23B | 1.61B | 1.57B | 1.5B | 1.43B | 1.38B | 1.45B | 1.46B | 1.37B | 1.33B | 1.3B | 1.12B | 1.05B | 801.8M | 726.4M | 597.5M | 548.5M | 493M | 454.9M | 435.8M | 439.7M | 490.4M | 509.8M | 543.5M |
| Stock-Based Compensation | 649.2M | 626M | 645.6M | 628.5M | 371.1M | 342.8M | 308.1M | 312.4M | 279.5M | 281.3M | 255.3M | 217.8M | 156M | 144.9M | 141.5M | 147.4M | 231M | 368.5M | 255.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -679.7M | -1.71B | -2.68B | -2.34B | -2.19B | -802.3M | -134.5M | 62.4M | 326.8M | -787.9M | 439.5M | -748.4M | 36.8M | 265.9M | 126M | -268.5M | 559.7M | 189.9M | 442.6M | 122.9M | 346.8M | -347.5M | 772.4M | 130.9M | 346.5M | 273.8M | -442.7M | 27.1M | 25.4M | -293M | 207.3M |
| Other Non-Cash Items | 4.1B | 3.35B | 3.88B | 2.24B | 1.63B | 1.71B | -444.2M | -3.4B | 2.46B | 1.55B | 406.1M | 798.3M | 12.6M | -413.2M | -462.3M | 385.9M | -146.1M | -892.6M | 5.2B | 1.15B | 959.9M | 1.5B | 927.5M | 322.7M | 65.4M | 230.3M | -97.1M | -142.3M | -100.2M | 2.09B | -97.8M |
| Working Capital Changes | -4.8B | -8.09B | -5.38B | -3.06B | -800K | -1.01B | -747.4M | -1.69B | -2.38B | 3.2B | -484.1M | -1.14B | 483.5M | -393M | -51.2M | 1.25B | -185.5M | -956.9M | 2.35B | -117M | -795.3M | -1.95B | -1.24B | 83.8M | -1.54B | -77.4M | 777.7M | -425.8M | 109.1M | 480.4M | -185.1M |
| Change in Receivables | 0 | -7B | -2.16B | -2.45B | -299.6M | -1.28B | -1.35B | -127.2M | -10.76B | -357M | -5.09B | -4.99B | 117.4M | -152.7M | 361.8M | -188.8M | -319.1M | 0 | 799.1M | 0 | 243.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | -4.67B | -2.51B | -1.43B | -599.7M | -235.9M | -533.4M | -258.7M | 7.8M | -253.9M | -328.2M | -736.3M | -307.1M | -286.5M | -307.9M | 203.1M | 157M | -179M | 84.8M | 154.3M | -60.2M | 72.1M | -111.6M | -170.8M | -285.1M | -184.2M | 9.8M | 16.9M | -55.6M | -65.8M | -42.2M |
| Change in Payables | 0 | 10.19B | 2.61B | 4.27B | 1.33B | -1.01B | 1.27B | -477.7M | -284.5M | 916.3M | 819M | 461.6M | 0 | -70.3M | -336.1M | 591.4M | -363.9M | 0 | -184.7M | 927.2M | -936M | -1.46B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -25.1B | -10.97B | -9.3B | -7.15B | -3.76B | -2.87B | -2.26B | -8.08B | 1.91B | -3.78B | -3.14B | 26.8M | -3.91B | -2.07B | -2.83B | -4.82B | -3.16B | 142.8M | -7.27B | -4.33B | 608.4M | -2.22B | -684.8M | -1.33B | -2.47B | -3.96B | -1.06B | 1.09B | -293.9M | 809.7M | -468M |
| Capital Expenditures | -9.89B | -7.84B | -5.06B | -3.45B | -1.85B | -1.31B | -2.03B | -1.35B | -1.21B | -2.16B | -1.09B | -1.63B | -1.57B | -1.01B | -1.04B | -1.69B | -1.19B | -855M | -947.2M | -1.08B | -1.08B | -1.3B | -1.9B | -1.71B | -1.13B | -884M | -677.9M | -528.3M | -419.9M | -366.3M | -443.9M |
| CapEx % of Revenue | 12.42% | 12.03% | 11.23% | 10.1% | 6.5% | 4.63% | 8.27% | 6.06% | 5.63% | 10.83% | 5.15% | 8.15% | 7.98% | 4.38% | 4.62% | 6.97% | 5.14% | 3.92% | 4.65% | 5.81% | 6.87% | 8.86% | 13.7% | 13.56% | 10.21% | 7.66% | 6.24% | 5.28% | 4.55% | 4.59% | 6.34% |
| Acquisitions | -10.47B | -661M | -947.7M | -1.04B | -327.2M | -747.4M | -849.3M | -6.94B | 0 | -882.1M | -45M | -5.28B | -551.4M | -43.7M | -199.3M | -282.5M | -609.4M | -72.3M | -6.08B | -2.67B | 65.2M | 11.1M | -71.7M | 61.2M | 36.8M | 31.6M | 0 | 1.68B | 0 | 1.23B | -97.1M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -4.54B | -2.79B | -3.04B | -2.53B | -1.34B | -644.3M | 102.8M | -248.7M | -2B | -175.1M | -56.7M | 5.77B | -5.41B | 800K | 1.3B | -277.2M | -194.7M | -4.5M | -381.1M | -245M | 179M | -353.6M | -477.6M | -217.2M | -316.1M | -369.7M | -1.36B | -116.6M | -89.5M | -34.2M | -29.6M |
| Cash from Financing | 2.61B | -2.21B | 1.23B | 3.5B | -5.41B | -4.13B | -3.14B | -2.32B | -5.9B | 142.6M | -559.8M | -2.92B | -166.4M | -3.83B | -4.42B | -2.37B | -2.02B | -5.53B | 2.35B | -844.9M | -4.58B | -1.88B | 203.7M | -1.58B | -422M | -1.05B | -2.23B | -1.45B | -2.81B | -1.95B | -1.66B |
| Debt Issued (Net) | 15.22B | 8.05B | 8.9B | 8.65B | -62M | 501.4M | 291.6M | 4.69B | -729.3M | 3B | 2.5B | -181.6M | 2.64B | -10.5M | -1.51B | -195.8M | 124M | -3.42B | 4.41B | 984.6M | -2.79B | 6.6M | 1.64B | 42.7M | 1.23B | 594.7M | -229.1M | 690.6M | -176.4M | -1.15B | -811.8M |
| Equity Issued (Net) | -6.17B | -4.11B | -2.5B | -750M | -1.5B | -1.25B | -500M | -4.4B | -2.49B | -299.8M | -600.1M | -749.5M | -800M | -1.7B | -721.1M | 0 | 0 | 0 | 0 | 24.7M | -62.5M | -272M | 104.5M | -178M | -320.6M | -436.2M | -874.4M | -1.14B | -1.76B | 14.1M | -96.1M |
| Dividends Paid | -5.78B | -5.38B | -4.68B | -4.07B | -3.54B | -3.09B | -2.69B | -2.41B | -2.31B | -2.19B | -2.16B | -2.13B | -2.1B | -2.12B | -2.19B | -2.18B | -2.17B | -2.15B | -2.06B | -1.85B | -1.74B | -1.65B | -1.54B | -1.44B | -1.34B | -1.21B | -1.13B | -1B | -877.7M | -818M | -753.2M |
| Share Repurchases | -6.17B | -4.11B | -2.5B | -750M | -1.5B | -1.25B | -500M | -4.4B | -4.15B | -299.8M | -600.1M | -749.5M | -800M | -1.7B | -721.1M | 0 | 0 | 0 | 0 | 0 | -122.1M | -377.9M | 0 | -281.1M | -385.2M | -545.7M | -1.05B | -1.45B | -2.17B | -351.3M | -314.5M |
| Other Financing | -650.3M | -772M | -490.6M | -335M | -308.9M | -295.9M | -241.6M | -200.1M | -372.8M | -364.4M | -300.8M | 139.2M | 96.1M | 0 | 0 | 6M | 19.4M | 42.6M | -8.1M | -600K | 9.9M | 39.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 5.57B | 4B | 449.8M | 751.6M | -1.75B | 161.4M | 1.32B | -5.66B | 1.46B | 1.95B | 915.7M | -205.2M | 41.4M | -188.6M | -1.9B | -70.7M | 1.53B | -1.03B | 2.28B | 111.2M | 102.6M | -2.36B | 2.61B | 810.4M | -756.4M | -1.41B | 414.5M | 2.2B | -451.8M | 1.13B | -185.8M |
| Free Cash Flow | 20.05B | 8.97B | 414.3M | -3.15B | 4.6B | 5.39B | 4.47B | 3.48B | 2.51B | 3.45B | 3.76B | 1.34B | 2.89B | 4.64B | 4.26B | 5.54B | 5.67B | 3.48B | 6.35B | 4.07B | 2.9B | 615.5M | 971.4M | 1.94B | 939.8M | 2.78B | 3.05B | 2.09B | 2.21B | 2.03B | 1.55B |
| FCF Margin % | 25.17% | 13.77% | 0.92% | -9.24% | 16.12% | 19.02% | 18.22% | 15.61% | 11.66% | 17.28% | 17.71% | 6.71% | 14.75% | 20.08% | 18.85% | 22.82% | 24.57% | 15.94% | 31.16% | 21.85% | 18.47% | 4.2% | 7.01% | 15.42% | 8.48% | 24.06% | 28.11% | 20.91% | 23.93% | 25.47% | 22.11% |
| FCF Growth % | 40048.01% | 2065.58% | 113.14% | -168.52% | -14.61% | 20.51% | 28.35% | 38.97% | -27.4% | -8.17% | 180.86% | -53.73% | -37.68% | 8.94% | -23.12% | -2.27% | 62.91% | -45.18% | 55.9% | 40.51% | 370.85% | -36.64% | -49.93% | 106.44% | -66.16% | -9.04% | 46.01% | -5.36% | 8.64% | 31.44% | 21.53% |
| FCF per Share | 22.44 | 9.99 | 0.46 | -3.49 | 4.84 | 5.65 | 4.67 | 3.64 | 2.42 | 3.28 | 3.41 | 1.21 | 2.60 | 4.16 | 3.72 | 4.97 | 5.13 | 3.17 | 5.80 | 3.73 | 2.67 | 0.56 | 0.89 | 1.80 | 0.87 | 2.55 | 2.79 | 1.89 | 1.97 | 1.80 | 1.39 |
| FCF Conversion (FCF/Net Income) | 0.75x | 0.81x | 0.83x | 0.81x | 1.21x | 1.32x | 1.05x | 0.58x | 1.71x | -27.51x | 1.77x | 1.23x | 1.87x | 1.22x | 1.30x | 1.66x | 1.35x | 1.00x | -3.52x | 1.75x | 1.49x | 0.97x | 1.59x | 1.42x | 0.76x | 1.32x | 1.22x | 0.96x | 1.25x | -6.23x | 1.31x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying LLY stock.
Eli Lilly and Company (LLY) generated $16.81B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Eli Lilly and Company (LLY) generated $8.97B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Eli Lilly and Company (LLY) spent $7.84B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Eli Lilly and Company (LLY) returned $5.38B to shareholders via cash dividends and spent $4.11B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
GLP-1 concentration risk
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Masks Earnings Power
LLY's OCF/NI swung from 0.49 in 2025Q4 to 1.58 in 2025Q3, per reported figures, indicating significant working capital swings that obscure underlying earnings quality.
The wide quarterly swings in OCF/NI, ranging from 0.49 to 1.58, suggest that reported net income is not consistently translating into cash, likely due to timing of collections and inventory builds. Investors should monitor whether the recent improvement to 1.51 in 2026Q2 reflects a sustainable trend or a one-off working capital release.
FCF Rebound After Negative Quarter
FCF margin recovered to 33.8% in 2026Q2 from -12.6% in 2025Q1, as per financial statements, driven by a surge in operating cash flow to $10.7B.
The dramatic recovery in FCF from negative territory to $7.8B in 2026Q2 indicates that the company's heavy investment phase is beginning to generate cash, but the volatility across quarters suggests that FCF is not yet stable. The 2025Q1 negative FCF of -$1.6B highlights the risk of lumpy working capital and capex timing, which investors should factor into forward estimates.
Capex Intensity Reflects Manufacturing Bet
CapEx/Revenue has risen from 11.2% in 2024Q1 to 12.8% in 2026Q2, based on reported data, signaling sustained investment in production capacity for GLP-1 drugs.
The consistent capex intensity above 10% of revenue, with quarterly spend reaching $2.9B in 2026Q2, underscores Lilly's commitment to expanding manufacturing capacity, likely for tirzepatide. This capital deployment appears to be a strategic bet on the obesity market, but it also means that any slowdown in demand could leave the company with excess capacity and lower returns on invested capital.
Working Capital Drags on Cash Flow
Working capital changes were negative in eight of the last ten quarters, with a -$3.7B outflow in 2025Q4, as reported, indicating persistent cash absorption from operations.
The recurring negative working capital changes, particularly the -$3.7B in 2025Q4, suggest that Lilly is investing heavily in inventory and receivables to support rapid revenue growth. While this is typical for a scaling pharma, the magnitude of the swings—ranging from -$3.7B to +$1.2B—creates volatility in operating cash flow and may indicate that channel stocking is inflating reported sales.
Capital Deployment Prioritizes Growth Over Returns
In 2026Q2, Lilly spent $8.7B on acquisitions, $1.6B on buybacks, and $1.5B on dividends, per SEC filings, showing a shift toward M&A while maintaining shareholder returns.
The $8.7B acquisition outflow in 2026Q2 is a significant departure from prior quarters, where acquisition spending was minimal, suggesting a strategic pivot toward external growth. Despite this, the company continues to return capital via dividends and buybacks, but the scale of M&A may strain future cash flows if not integrated successfully.
Cumulative Cash Generation Lags Net Income
Over the last ten quarters, cumulative operating cash flow of $41.7B trails cumulative net income of $45.8B, based on reported figures, indicating a persistent gap.
The cumulative gap of approximately $4.1B between net income and operating cash flow suggests that earnings are not fully converting to cash, likely due to aggressive working capital investment and possibly non-cash items. This divergence warrants monitoring, as it may indicate that reported profitability is being supported by accruals rather than actual cash generation.
What the Cash Flow Statement Obscures
SBC of $201M in 2026Q2 and acquisition outflows of $8.7B, as reported, may understate true cash costs and overstate operating cash flow, warranting scrutiny.
While SBC is modest relative to operating cash flow, the $8.7B acquisition outflow in 2026Q2 is not captured in operating cash flow, potentially masking the true cash cost of growth. Additionally, capitalized costs related to manufacturing build-out may be inflating reported FCF, as these investments are classified as capex rather than operating expenses, which could overstate the sustainability of current cash generation.