Eli Lilly’s asset turnover ratio is low at only .765, meaning it could be managing its assets better to create more operating revenue. Even though this ratio is low, it is still better than the asset turnover ratio of Pfizer but not Johnson and Johnson. Their receivables turnover ratio is the highest amongst competitors, showing it turns its receivables over into revenue more often than its competitors. Also its average collection period is lower than competitors, meaning they might have a strict credit policy but they also are effective at collecting money on sales. Inventory turnover and the days in inventory ratios show Eli Lilly is in worse standing for both ratios relative to
Eli Lilly’s asset turnover ratio is low at only .765, meaning it could be managing its assets better to create more operating revenue. Even though this ratio is low, it is still better than the asset turnover ratio of Pfizer but not Johnson and Johnson. Their receivables turnover ratio is the highest amongst competitors, showing it turns its receivables over into revenue more often than its competitors. Also its average collection period is lower than competitors, meaning they might have a strict credit policy but they also are effective at collecting money on sales. Inventory turnover and the days in inventory ratios show Eli Lilly is in worse standing for both ratios relative to