Cash conversion remains volatile, as evidenced by a 2025Q4 OCF/NI ratio of 0.49 and a significant $3.7 billion working capital outflow, reflecting the heavy investment required for global product scaling.
| 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 | 20.48B | 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 % | 499.11% | 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 | 25.27B | 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 | 2.04B | 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 | 633.3M | 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 | -2.79B | -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 | 1.71B | 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 | -6.39B | -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 | -11.54B | -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 | -8.66B | -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 | 11.98% | 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 | -1.72B | -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 | -1.31B | -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 | -7.06B | -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) | 4.46B | 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) | -5.26B | -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 | -5.59B | -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 | -5.26B | -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 | -676.7M | -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 | 2.19B | 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 | 13.58B | 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 % | 18.8% | 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 % | 1169.45% | 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 | 15.16 | 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) | 0.54x | 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 |
Manufacturing capacity bottleneck risks
As reported in financial statements, LLY's OCF/NI ratio fluctuated significantly, reaching a low of 0.49 in 2025Q4, which suggests that a substantial portion of reported net income is currently tied up in non-cash accruals rather than immediate cash generation from core pharmaceutical operations.
The persistent gap between net income and operating cash flow indicates that earnings quality is currently impacted by significant working capital requirements. Investors should monitor whether this divergence reflects temporary channel stocking or more permanent shifts in the timing of revenue recognition for high-growth metabolic products.
Based on LLY's reported figures, free cash flow has exhibited extreme volatility, ranging from a negative $2.0 billion in 2023Q4 to a peak of $8.6 billion in 2025Q3, highlighting the lumpy nature of cash conversion during this aggressive global product launch cycle.
The inconsistency in FCF margins suggests that the company is prioritizing market share capture over immediate cash flow stability. This trajectory appears to be heavily influenced by the timing of large-scale manufacturing investments and the associated working capital drag inherent in scaling complex biologic production.
According to recent SEC filings, LLY's capital expenditure reached $2.5 billion in 2025Q4, representing a sustained commitment to manufacturing infrastructure that consumes a significant portion of operating cash flow and underscores the high barrier to entry for the company's proprietary incretin platform.
The elevated CapEx/Revenue ratio, consistently above 10% over the last ten quarters, indicates that the company is in a heavy investment phase to resolve supply bottlenecks. This capital intensity is a necessary trade-off to secure long-term production capacity, though it temporarily suppresses free cash flow generation.
As noted in quarterly data, LLY experienced a significant $3.7 billion working capital outflow in 2025Q4, which appears to be driven by the rapid accumulation of inventory and receivables required to support the unprecedented demand for tirzepatide and other metabolic therapeutic offerings.
The consistent negative working capital changes suggest that the company is aggressively building inventory to mitigate supply shortages. While this supports top-line growth, it creates a persistent drag on cash flow that warrants further investigation into the efficiency of the current supply chain and collection cycles.
Based on reported financial data, LLY continues to return capital to shareholders through dividends and buybacks while simultaneously funding massive internal manufacturing expansion, suggesting a management strategy that balances immediate shareholder returns with long-term infrastructure investment to maintain its competitive lead in the metabolic space.
The company's ability to sustain dividend payments and share repurchases despite heavy CapEx requirements suggests a strong underlying cash-generating capability. However, the reliance on external financing or cash reserves to fund these concurrent activities may limit flexibility if market conditions for metabolic drugs shift unexpectedly.
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.