Eli Lilly and Co | Ratios - KeyEli Lilly and Co | Ratios - Key Metrics | Thomson Reuters Eikon                                22-Apr-2019 22:29Eli Lilly and CoLLYLast115.47cUSD0.270.23%Close115.47HoldRatios - Key MetricsAnnual Standardised in Millions of U.S. DollarsIndustry Median2009201020112012201320142015201620172018Earnings Quality Score5264889995728188979295ProfitabilityGross Margin73.3% 80.6%81.1%79.1%78.8%78.8%74.9%74.8%73.4%73.5%73.8%EBITDA Margin19.3% 34.2%34.3%31.0%28.0%29.8%24.0%25.2%25.3%28.4%31.7%Operating Margin(0.8%) 25.6%28.3%22.8%20.9%23.2%13.6%12.6%16.3%9.4%15.2%Pretax Margin(1.7%) 24.5%28.3%22.0%23.9%25.5%15.3%14.0%15.9%9.6%15.5%Effective Tax Rate9.7% 19.2%22.3%18.7%24.4%20.5%20.3%13.7%18.9%22.2%10.2%Net Margin(0.1%) 19.8%22.0%17.9%18.1%20.3%12.2%12.1%12.9%7.5%13.9%DuPont/Earning PowerAsset Turnover0.28 0.770.790.750.660.660.550.560.570.550.55x Pretax Margin(1.7%) 24.5%28.3%22.0%23.9%25.5%15.3%14.0%15.9%9.6%15.5%Pretax ROA(4.4%) 18.9%22.3%16.5%15.9%16.9%8.4%7.8%9.1%5.2%8.5%x Leverage (Assets/Equity)1.87 2.882.502.492.332.002.362.442.773.884.47Pretax ROE2.3% 65.9%59.5%41.2%38.2%36.4%18.2%18.6%23.6%17.2%35.4%x Tax Complement0.94 0.810.780.810.760.800.800.860.81(0.09)0.85ROE(7.2%) 53.2%46.2%33.5%28.9%28.9%14.5%16.1%19.2%13.4%31.8%x Earnings Retention1.00 0.500.570.500.470.550.120.110.21(0.31)0.30Reinvestment Rate(8.4%) 26.8%26.5%16.7%13.4%15.9%1.7%1.8%4.0%(4.1%)9.7%LiquidityQuick Ratio1.84 1.471.781.341.241.140.941.111.051.011.38Current Ratio2.98 1.902.141.601.551.471.221.531.371.321.73Times Interest Earned0.8 24.436.534.028.234.722.422.320.921.922.7Cash Cycle (Days)153.0 209.9202.8157.9166.1184.4199.9207.3216.0238.8249.0LeverageAssets/Equity1.87 2.882.502.492.332.002.362.442.773.884.47Debt/Equity0.28 0.700.560.520.370.300.520.550.741.181.30% LT Debt to Total Capital20.6% 41.0%35.0%26.6%27.2%18.4%22.8%35.3%34.3%39.3%49.2%(Total Debt - Cash) / EBITDA1.42 0.450.150.02--0.320.670.730.760.66OperatingA/R Turnover4.5 6.15.85.85.65.85.05.14.84.64.3Avg. A/R Days78.0 59.663.463.365.862.673.072.276.280.285.5Inv Turnover1.8 1.61.62.11.91.81.71.61.61.51.5Avg. Inventory Days202.2 230.2225.0174.0188.6207.8210.3224.7226.8241.8243.9Avg. A/P Days133.5 79.985.579.388.386.083.489.687.083.280.3Fixed Asset Turnover3.30 2.602.863.092.912.942.462.492.602.682.77WC / Sales Growth(0.4%) (3.2%)17.9%(2.7%)(5.2%)(2.9%)(2.9%)0.1%3.6%(0.7%)7.9%Bad Debt Allowance (% of A/R)1.8% 2.9%1.9%2.6%2.8%1.5%1.4%1.1%0.8%0.7%0.5%ROIC- 23.4%22.5%17.8%16.1%17.9%9.0%8.9%9.9%5.9%11.1%Revenue per Employee ($)- $540,094.00$586,355.00$635,522.70$591,479.80$606,046.50$509,099.40$496,423.30$509,840.20$553,583.40$619,038.30 Eli Lilly and Co | Cash Flow | Eli Lilly and Co | Cash Flow | Thomson Reuters Eikon                                22-Apr-2019 22:29Cash FlowAnnual Standardised in Millions of U.S. Dollars2009201020112012201320142015201620172018Earnings Quality Score64 88 99 95 72 81 88 97 92 95 Period End Date31-Dec-2009 31-Dec-2010 31-Dec-2011 31-Dec-2012 31-Dec-2013 31-Dec.

1. Eli Lilly and Co | Ratios - KeyEli Lilly and Co | Ratios - Key
Metrics | Thomson Reuters Eikon 22-Apr-
2019 22:29Eli Lilly and
CoLLYLast115.47cUSD0.270.23%Close115.47HoldRatios -
Key MetricsAnnual Standardised in Millions of U.S.
DollarsIndustry
Median2009201020112012201320142015201620172018Earning
s Quality Score5264889995728188979295ProfitabilityGross
Margin73.3% 80.6%81.1%79.1%78.8%78.8%74.9%74.8%73.4%
73.5%73.8%EBITDA
Margin19.3% 34.2%34.3%31.0%28.0%29.8%24.0%25.2%25.3%
28.4%31.7%Operating
Margin(0.8%) 25.6%28.3%22.8%20.9%23.2%13.6%12.6%16.3
%9.4%15.2%Pretax
Margin(1.7%) 24.5%28.3%22.0%23.9%25.5%15.3%14.0%15.9
%9.6%15.5%Effective Tax
Rate9.7% 19.2%22.3%18.7%24.4%20.5%20.3%13.7%18.9%22.
2%10.2%Net
Margin(0.1%) 19.8%22.0%17.9%18.1%20.3%12.2%12.1%12.9
%7.5%13.9%DuPont/Earning PowerAsset
Turnover0.28 0.770.790.750.660.660.550.560.570.550.55x
Pretax
Margin(1.7%) 24.5%28.3%22.0%23.9%25.5%15.3%14.0%15.9
%9.6%15.5%Pretax
ROA(4.4%) 18.9%22.3%16.5%15.9%16.9%8.4%7.8%9.1%5.2%
8.5%x Leverage
(Assets/Equity)1.87 2.882.502.492.332.002.362.442.773.884.47
Pretax
ROE2.3% 65.9%59.5%41.2%38.2%36.4%18.2%18.6%23.6%17.
2%35.4%x Tax
Complement0.94 0.810.780.810.760.800.800.860.81(0.09)0.85R
OE(7.2%) 53.2%46.2%33.5%28.9%28.9%14.5%16.1%19.2%13.
4%31.8%x Earnings
Retention1.00 0.500.570.500.470.550.120.110.21(0.31)0.30Rein

2. vestment
Rate(8.4%) 26.8%26.5%16.7%13.4%15.9%1.7%1.8%4.0%(4.1%
)9.7%LiquidityQuick
Ratio1.84 1.471.781.341.241.140.941.111.051.011.38Current
Ratio2.98 1.902.141.601.551.471.221.531.371.321.73Times
Interest
Earned0.8 24.436.534.028.234.722.422.320.921.922.7Cash
Cycle
(Days)153.0 209.9202.8157.9166.1184.4199.9207.3216.0238.82
49.0LeverageAssets/Equity1.87 2.882.502.492.332.002.362.442.
773.884.47Debt/Equity0.28 0.700.560.520.370.300.520.550.741
.181.30% LT Debt to Total
Capital20.6% 41.0%35.0%26.6%27.2%18.4%22.8%35.3%34.3%
39.3%49.2%(Total Debt - Cash) / EBITDA1.42 0.450.150.02--
0.320.670.730.760.66OperatingA/R
Turnover4.5 6.15.85.85.65.85.05.14.84.64.3Avg. A/R
Days78.0 59.663.463.365.862.673.072.276.280.285.5Inv
Turnover1.8 1.61.62.11.91.81.71.61.61.51.5Avg. Inventory
Days202.2 230.2225.0174.0188.6207.8210.3224.7226.8241.824
3.9Avg. A/P
Days133.5 79.985.579.388.386.083.489.687.083.280.3Fixed
Asset
Turnover3.30 2.602.863.092.912.942.462.492.602.682.77WC /
Sales
Growth(0.4%) (3.2%)17.9%(2.7%)(5.2%)(2.9%)(2.9%)0.1%3.6
%(0.7%)7.9%Bad Debt Allowance (% of
A/R)1.8% 2.9%1.9%2.6%2.8%1.5%1.4%1.1%0.8%0.7%0.5%RO
IC-
23.4%22.5%17.8%16.1%17.9%9.0%8.9%9.9%5.9%11.1%Reve
nue per Employee ($)-
$540,094.00$586,355.00$635,522.70$591,479.80$606,046.50$
509,099.40$496,423.30$509,840.20$553,583.40$619,038.30
Eli Lilly and Co | Cash Flow | Eli Lilly and Co | Cash Flow |
Thomson Reuters Eikon 22-Apr-2019
22:29Cash FlowAnnual Standardised in Millions of U.S.
Dollars2009201020112012201320142015201620172018Earning

3. s Quality Score64 88 99 95 72 81 88 97 92 95 Period End
Date31-Dec-2009 31-Dec-2010 31-Dec-2011 31-Dec-2012 31-
Dec-2013 31-Dec-2014 31-Dec-2015 31-Dec-2016 31-Dec-
2017 31-Dec-2018 Period Length12 Months 12 Months 12
Months 12 Months 12 Months 12 Months 12 Months 12
Months 12 Months 12 Months Statement Date31-Dec-2009 31-
Dec-2010 31-Dec-2011 31-Dec-2012 31-Dec-2013 31-Dec-
2016 31-Dec-2016 31-Dec-2016 31-Dec-2017 31-Dec-
2018 Cash Flow-Operating Activities ($ Millions)Net
Income/Starting
Line4,328.85,069.54,347.74,088.64,684.82,390.52,408.42,737.6
(204.1)3,232.0Depreciation/Depletion1,297.81,328.21,373.61,4
62.21,445.61,379.01,427.71,496.61,567.31,609.0Depreciation1,
297.81,328.21,373.61,462.21,445.61,379.01,427.71,496.61,567.
31,609.0Amortization--------------------Deferred
Taxes189.9559.7(268.5)126.0285.936.8(748.4)439.5(787.9)326.
8Non-Cash
Items(524.1)84.9533.3(320.8)(288.3)977.61,016.1661.41,835.42
,735.4Unusual
Items(1,313.6)(112.3)151.5205.00.0340.7(186.1)(3.4)--
1,983.9Purchased
R&D58.532.5252.20.037.1200.2535.030.01,112.6--Other Non-
Cash
Items731.0164.7129.6(525.8)(325.4)436.7667.2634.8722.8751.5
Changes in Working
Capital(956.9)(185.5)1,248.4(51.2)(393.0)(325.5)(1,139.2)(484.
1)3,204.9(2,378.7)Accounts
Receivable(492.9)(319.1)(188.8)361.8(152.7)117.4(304.5)(709.
4)(357.0)(996.7)Inventories(179.0)157.0203.1(307.9)(286.5)(30
7.1)(736.3)(328.2)(253.9)7.8Other
Assets(84.9)340.5642.7231.0116.5673.2(288.5)(265.5)(590.1)(9
80.0)Accounts
Payable(200.1)(363.9)591.4(336.1)(70.3)(809.0)190.1819.0916.
3(284.5)Taxes Payable----------------3,489.6(125.3)Cash from
Operating
Activities4,335.56,856.87,234.55,304.85,735.04,458.42,964.64,

4. 851.05,615.65,524.5Cash Flow-Investing Activities ($
Millions)Capital
Expenditures(855.0)(1,186.7)(1,692.9)(1,044.2)(1,093.3)(1,565.
9)(1,626.2)(1,092.0)(2,163.6)(3,018.2)Purchase of Fixed
Assets(765.0)(694.3)(672.0)(905.4)(1,012.1)(1,162.6)(1,066.2)(
1,037.0)(1,076.8)(1,210.6)Purchase/Acquisition of
Intangibles(90.0)(492.4)(1,020.9)(138.8)(81.2)(403.3)(560.0)(5
5.0)(1,086.8)(1,807.6)Other Investing Cash Flow Items,
Total997.8(1,973.1)(3,131.5)(1,788.6)(979.5)(2,343.2)1,653.0(2
,047.1)(1,620.0)4,924.2Acquisition of
Business0.0(609.4)(307.8)(199.3)(43.7)(551.4)(5,283.1)(45.0)(8
82.1)0.0Sale of Fixed
Assets17.724.625.322.0179.415.392.673.440.73.6Sale/Maturity
of
Investment1,107.8584.72,138.54,355.714,555.115,063.55,230.2
3,728.07,438.56,062.0Investment,
Net399.1(686.5)(250.9)375.1------------Purchase of
Investments(432.3)(1,067.2)(4,459.4)(7,618.6)(15,572.9)(11,44
0.5)(4,068.7)(5,673.4)(8,001.3)(950.1)Sale of Intangible Assets-
---------0.0410.00.00.0--Other Investing Cash
Flow(94.5)(219.3)(277.2)1,276.5(97.4)(5,430.1)5,272.0(130.1)(
215.8)(191.3)Cash from Investing
Activities142.8(3,159.8)(4,824.4)(2,832.8)(2,072.8)(3,909.1)26.
8(3,139.1)(3,783.6)1,906.0Cash Flow-Financing Activities ($
Millions)Financing Cash Flow
Items42.619.46.00.00.096.1(52.6)(300.8)(364.4)(372.8)Other
Financing Cash
Flow42.619.46.00.00.096.1(52.6)(300.8)(364.4)(372.8)Total
Cash Dividends
Paid(2,152.1)(2,165.3)(2,180.1)(2,187.4)(2,120.7)(2,101.2)(2,12
7.3)(2,158.5)(2,192.1)(2,311.8)Cash Dividends Paid -
Common(2,152.1)(2,165.3)(2,180.1)(2,187.4)(2,120.7)(2,101.2)
(2,127.3)(2,158.5)(2,192.1)(2,311.8)Issuance (Retirement) of
Stock, Net--
0.00.0(721.1)(1,698.1)(800.0)(749.5)(600.1)(299.8)(2,491.0)Sal
e/Issuance of Common------------------

5. 1,659.7Repurchase/Retirement of Common--
0.00.0(721.1)(1,698.1)(800.0)(749.5)(600.1)(299.8)(4,150.7)Co
mmon Stock, Net--
0.00.0(721.1)(1,698.1)(800.0)(749.5)(600.1)(299.8)(2,491.0)Iss
uance (Retirement) of Debt,
Net(3,424.2)124.0(195.8)(1,511.1)(10.5)2,638.7(181.6)2,499.62
,998.9(729.3)Short Term Debt,
Net(5,824.2)123.9(141.2)(10.5)0.02,680.6(2,680.6)1,293.21,397
.5(2,197.9)Long Term Debt Issued2,400.01.20.0----
992.94,454.71,206.62,232.02,477.7Long Term Debt
Reduction0.0(1.1)(54.6)(1,500.6)(10.5)(1,034.8)(1,955.7)(0.2)(6
30.6)(1,009.1)Long Term Debt,
Net2,400.00.1(54.6)(1,500.6)(10.5)(41.9)2,499.01,206.41,601.4
1,468.6Cash from Financing
Activities(5,533.7)(2,021.9)(2,369.9)(4,419.6)(3,829.3)(166.4)(
3,111.0)(559.8)142.6(5,904.9)Foreign Exchange
Effects21.6(144.8)(110.9)43.9(21.5)(341.5)(85.6)(236.4)(20.5)(
63.6)Net Change in
Cash(1,033.8)1,530.3(70.7)(1,903.7)(188.6)41.4(205.2)915.71,9
54.11,462.0Net Cash - Beginning
Balance5,496.74,462.95,993.25,922.54,018.83,830.23,871.63,66
6.44,582.16,536.2Net Cash - Ending
Balance4,462.95,993.25,922.54,018.83,830.23,871.63,666.44,58
2.16,536.27,998.2Cash Interest
Paid205.9176.3167.4171.9139.7140.4129.6146.4192.7223.8Cas
h Taxes
Paid1,140.0861.0943.0992.01,260.0729.7969.0700.6246.51,101.
5Reported Cash from Operating Activities--------------------
Reported Cash from Investing Activities--------------------
Reported Cash from Financing Activities--------------------Free
Cash
Flow3,480.55,670.15,541.64,260.64,641.72,892.51,338.43,759.0
3,452.02,506.3
Eli Lilly and Co | Balance SheeEli Lilly and Co | Balance Sheet
| Thomson Reuters Eikon 22-Apr-2019
22:29Eli Lilly and

6. CoLLYLast115.47cUSD0.270.23%Close115.47HoldBalance
SheetAnnual Standardised in Millions of U.S.
Dollars2009201020112012201320142015201620172018Earning
s Quality Score64 88 99 95 72 81 88 97 92 95 Period End
Date31-Dec-2009 31-Dec-2010 31-Dec-2011 31-Dec-2012 31-
Dec-2013 31-Dec-2014 31-Dec-2015 31-Dec-2016 31-Dec-
2017 31-Dec-2018 Statement Date31-Dec-2010 31-Dec-
2011 31-Dec-2011 31-Dec-2012 31-Dec-2014 31-Dec-2015 31-
Dec-2015 31-Dec-2016 31-Dec-2017 31-Dec-2018 Assets ($
Millions)Cash and Short Term
Investments4,4986,7276,8975,6845,3974,8274,4526,0398,0348,
086Cash &
Equivalents4,4635,9935,9234,0193,8303,8723,6664,5826,5367,
998Short Term
Investments357349751,6661,5679557851,4571,49888Accounts
Receivable - Trade,
Net3,3433,4943,5983,3363,4343,2353,5134,0294,5465,247Acco
unts Receivable - Trade,
Gross3,4533,5743,7083,4453,4973,2903,5574,0704,5855,279Pr
ovision for Doubtful
Accounts(110)(80)(110)(109)(62)(55)(44)(40)(39)(33)Total
Receivables,
Net3,8324,1584,2383,8884,0233,8014,0724,7665,2626,205Rece
ivables - Other489664640552588567559737716958Total
Inventory2,8502,5182,3002,6442,9292,7403,4463,5624,4584,11
2Inventories - Finished
Goods9388017868349688381,0539871,211988Inventories -
Work In
Progress1,8301,7141,5181,7361,8681,7152,0582,1172,6982,628
Inventories - Raw
Materials228221206256259315403435489507LIFO
Reserve(146)(218)(211)(183)(167)(128)(69)2260(11)Prepaid
Expenses1,3071,4378138227565606047351,4482,147Other
Current Assets, Total--------------------Total Current
Assets12,48714,84014,24813,03913,10511,92812,57415,10119,
20220,550Property/Plant/Equipment, Total -

7. Gross15,10014,48714,59414,91815,64716,02916,66116,77818,0
9118,464Buildings -
Gross6,1226,0296,1366,3746,4906,5166,7876,9187,4267,684La
nd/Improvements -
Gross217208203201199205221198193193Machinery/Equipment
-
Gross7,8137,3567,2207,5437,7537,6107,9897,8658,6898,817Co
nstruction in Progress -
Gross9488941,0368001,2051,6981,6651,7981,7841,770Property
/Plant/Equipment, Total -
Net8,1977,9417,7607,7607,9767,9648,0548,2538,8278,920Accu
mulated Depreciation,
Total(6,903)(6,546)(6,834)(7,158)(7,671)(8,065)(8,607)(8,525)(
9,265)(9,545)Goodwill,
Net1,1751,4241,9101,5661,5171,7584,0403,9734,3704,348Intan
gibles,
Net2,5253,3953,2193,1862,8142,8845,0354,3584,0293,521Intan
gibles -
Gross3,1944,4504,7425,2375,3355,8457,8577,7317,9505,433Ac
cumulated Intangible
Amortization(669)(1,055)(1,524)(2,051)(2,520)(2,961)(2,822)(3
,373)(3,921)(1,912)Long Term
Investments1,1561,7804,0306,3137,6254,5693,6475,2085,6792,
021LT Investment - Affiliate
Companies157164160233354447671569585305LT Investments -
Other9991,6153,8706,0807,2714,1222,9754,6395,0941,716Note
Receivable - Long Term--------------------Other Long Term
Assets,
Total1,9211,6222,4932,5342,2137,2042,2211,9142,8744,550Def
ered Income Tax - Long Term Asset------------------
2,658Restricted Cash - Long Term--------05,4060------Other
Long Term
Assets1,9211,6222,4932,5342,2131,7992,2211,9142,8741,892T
otal
Assets27,46131,00133,66034,39935,24936,30835,56938,80644,
98143,908Liabilities ($ Millions)Accounts

8. Payable9681,0721,1251,1881,1191,1281,3381,3491,4111,412Pa
yable/Accrued--------------------Accrued
Expenses8948528059409447599678979981,055Notes
Payable/Short Term
Debt271561,522120001,2992,697499Current Port. of LT
Debt/Capital Leases--------1,0132,68966381,010632Other
Current liabilities,
Total4,6784,8475,4796,2495,8415,1655,9186,8038,4218,290Div
idends Payable538540542541524530539548591651Income
Taxes Payable34745826214425494359119533404Other
Payables1,1101,3731,7711,7771,9422,0692,5603,9154,4655,022
Deferred Income Tax - Current Liability----4221,048793---------
-Other Current
Liabilities2,6842,4772,4812,7392,3282,4732,4602,2212,8322,21
3Total Current
Liabilities6,5686,9278,9318,3908,9179,7418,23010,98714,5361
1,888Total Long Term
Debt6,6356,7715,4655,5194,2005,3337,9728,3689,94111,640Lo
ng Term
Debt6,6356,7715,4655,5194,2005,3337,9728,3599,93211,632Ca
pital Lease Obligations--------------997Total
Debt6,6626,9276,9875,5315,2138,0227,97910,30513,64712,771
Deferred Income Tax--------------------Minority
Interest2(8)(6)99151973761,080Other Liabilities,
Total4,7334,8915,7295,7164,4915,8464,7775,3718,8379,472Pen
sion Benefits -
Underfunded2,3351,8873,0693,0121,5492,5632,1602,4543,5142
,911Other Long Term
Liabilities2,3983,0042,6602,7042,9423,2832,6162,9175,3236,56
0Total
Liabilities17,93718,58120,11819,63417,61720,93420,99824,798
33,38934,080Shareholders Equity ($ Millions)Redeemable
Preferred Stock, Total--------------------Preferred Stock - Non
Redeemable, Net--------------------Common Stock,
Total719721724717699695691689688661Common
Stock719721724717699695691689688661Additional Paid-In

9. Capital4,6364,7994,8874,9635,0505,2925,5525,6415,8186,584R
etained Earnings (Accumulated
Deficit)9,83012,73314,89816,08816,99216,48316,01216,04613,
89411,396Treasury Stock -
Common(99)(96)(95)(192)(94)(91)(90)(81)(76)(69)ESOP Debt
Guarantee(77)(52)0--------------Unrealized Gain (Loss)--
129157320510010224114(22)Other Equity,
Total(5,485)(5,812)(6,887)(6,883)(5,221)(7,105)(7,604)(8,511)(
8,845)(8,720)Translation Adjustment--
511266427463(498)(1,360)(1,867)(1,233)(1,623)Other
Equity(3,013)(3,013)(3,013)(3,013)(3,013)(3,013)(3,013)(3,013
)(3,013)(3,013)Minimum Pension Liability Adjustment--
(3,176)(4,032)(4,195)(2,489)(3,402)(3,012)(3,372)(4,341)(3,857
)Other Comprehensive
Income(2,472)(134)(107)(101)(182)(191)(219)(259)(258)(228)T
otal
Equity9,52412,42013,54214,76517,63115,37314,57114,00811,5
929,829Total Liabilities & Shareholders'
Equity27,46131,00133,66034,39935,24936,30835,56938,80644,
98143,908Supplemental ($ Millions)Shares Outstanding -
Common Issue 2--------------------Shares Outstanding - Common
Issue 3--------------------Shares Outstanding - Common Issue 4--
------------------Total Common Shares
Outstanding1,1491,1531,1581,1441,1171,1111,1051,1011,1001,
057Shares Outs - Common Stock Primary
Issue1,1491,1531,1581,1441,1171,1111,1051,1011,1001,057Tre
as Shares - Common Stock Prmry Issue1113111111Treasury
Shares - Common Issue 2--------------------Treasury Shares -
Common Issue 3--------------------Treasury Shares - Common
Issue 4--------------------Total Preferred Shares Outstanding------
--------------Treasury Shares - Preferred Issue 1--------------------
Treasury Shares - Preferred Issue 2--------------------Treasury
Shares - Preferred Issue 3--------------------Treasury Shares -
Preferred Issue 4--------------------Treasury Shares - Preferred
Issue 5--------------------Treasury Shares - Preferred Issue 6------
--------------Minority Interest - Redeemable--------------------

10. Minority Interest - Non
Redeemable2(8)(6)99151973761,080Total Equity & Minority
Interest9,52512,41313,53614,77417,64115,38814,59014,08111,
66810,909Full-Time
Employees40,36038,35038,08038,35037,92539,13541,27541,97
540,65538,680Part-Time Employees--------------------Number of
Common
Shareholders38,40036,70035,20033,63831,90029,30028,00026,
80025,30024,000Other Property/Plant/Equipment - Net-----------
---------Intangibles - Net--------------------Goodwill -
Net1,1751,4241,9101,5661,5171,7584,0403,9734,3704,348Accu
mulated Goodwill Amortization Suppl.--------------------
Accumulated Intangible Amort,
Suppl.6691,0551,5242,0512,5202,9612,8223,3733,9211,912Rig
ht-of-Use Assets-Cap.Lease,Net-Suppl.--------------------Right-
of-Use Assets-Cap.Lease,Gross-Sup.--------------------Right-of-
Use Assets-Cap.Lease,Depr.-Sup.--------------------Right-of-Use
Assets-Op.Lease, Net-Suppl.--------------------Right-of-Use
Assets-Op.Lease, Gross-Sup.--------------------Right-of-Use
Assets-Op.Lease, Depr.-Sup.--------------------Non-Current
Marketable Securities,Suppl.--------------------Contract Assets -
Short Term--------------------Contract Assets - Long Term--------
------------Deferred Revenue - Current--------------------Deferred
Revenue - Long Term--------------------Short Term Debt
Financial Sector, Suppl.--------------------Curr Port - LTD/Cap
Lse Fin Sec., Suppl.--------------------Long Term Debt Financial
Sector, Suppl.--------------------Capital Lease Oblig. - Fin
Sector, Suppl--------------------Curr. Port. of LT Capital Leases,
Suppl.------------------5Curr Port of LT Operating Leases,
Suppl.--------------------Long-Term Operating Lease Liabs.,
Suppl.--------------------Curr Derivative Liab. Hedging, Suppl.---
-----------------Curr Derivative Liab. Spec./Trdg, Suppl.----------
----------Non-Curr Derivative Liab. Hedging, Suppl---------------
-----Non-Curr Derivative Liab Spec/Trdg Suppl-------------------
-Leverage Ratio (Basel 3)--------------------Net Stable Funding
Ratio (Basel 3)--------------------Liquidity Coverage Ratio

11. (Basel 3)--------------------Capital Adequacy - Core Tier 1
(Value)--------------------Capital Adequacy - Hybrid Tier 1
(Value)--------------------Capital Adequacy -Tier 1 Capital
(Value)--------------------Capital Adequacy -Tier 2 Capital
(Value)--------------------Capital Adequacy -Tier 3 Capital
(Value)--------------------Capital Adequacy - Total Capital
(Value)--------------------Total Risk-Weighted Capital-------------
-------Capital Adequacy - Core Tier 1 Capital %-------------------
-Capital Adequacy - Tier 1 Capital %--------------------Capital
Adequacy - Tier 2 Capital %--------------------Capital Adequacy
- Tier 3 Capital %--------------------Capital Adequacy - Total
Capital %--------------------Trading Account--------------------
Credit Exposure--------------------Non-Performing Loans---------
-----------Assets under Management--------------------Total
Current Assets less
Inventory9,63712,32211,94810,39510,1769,1889,12811,54014,7
4416,438Net Debt Incl. Pref.Stock &
Min.Interest2,16619284(144)(175)3,2093,5464,3395,6895,765T
angible Book Value, Common
Equity5,8247,6028,41410,01313,30010,7315,4975,6773,1931,96
0Reported Total Assets--------------------Reported Total
Liabilities--------------------Shareholders' Equity Excl. Stock
Subscr.--------------------Reported Shareholder's Equity-----------
---------Reported Net Assets--------------------Reported Net
Assets to Total Assets--------------------Reported Return on
Assets--------------------Reported Return on Equity----------------
----Islamic Investments & Deposits--------------------Islamic
Receivables--------------------Islamic Debt--------------------
Islamic Section, Supplemental--------------------Debt & Lease,
Pension Items ($ Millions)Total Long Term Debt,
Supplemental2,5702,5762,7372,235----
2,0472,2403,0843,800Long Term Debt Maturing within 1
Year20181,51012----66351,009635Long Term Debt Maturing in
Year 2161,520101,010----63599960434Long Term Debt
Maturing in Year 31,510161,0109----8036033942Long Term
Debt Maturing in Year 4141,0105204----602211,439Long Term

12. Debt Maturing in Year 51,010122011,000----111,467750Long
Term Debt Maturing in 2-3 Years1,5261,5361,0201,019----
1,4381,602607976Long Term Debt Maturing in 4-5
Years1,0241,0222071,204----60221,4692,189Long Term Debt
Matur. in Year 6 & Beyond0000----0000Total Capital Leases,
Supplemental39396142----16141312Capital Lease Payments
Due in Year 11414815----5555Capital Lease Payments Due in
Year 277611----4333Capital Lease Payments Due in Year
377611----4333Capital Lease Payments Due in Year 45462----
1111Capital Lease Payments Due in Year 55462----1111Capital
Lease Payments Due in 2-3 Years13131322----9776Capital
Lease Payments Due in 4-5 Years99125----2221Cap. Lease
Pymts. Due in Year 6 & Beyond33290----0000Total Operating
Leases, Supplemental403572515647620--
934874773805Operating Lease Payments Due in Year
1109109112145137--133135131156Operating Lease Payments
Due in Year 2788178116109--91115112128Operating Lease
Payments Due in Year 3788178116109--9111511289Operating
Lease Payments Due in Year 43952506774--
122858675Operating Lease Payments Due in Year
53952506774--122858658Operating Lease Pymts. Due in 2-3
Years156163155232218--181231225217Operating Lease Pymts.
Due in 4-5 Years78103100134147--245170172133Oper. Lse.
Pymts. Due in Year 6 & Beyond60198148136118--
376339246300Operating Leases - Interest Cost--------------------
Total Funded Status(2,398)(1,893)(2,975)(2,957)(372)--
(1,247)(1,810)(2,610)(1,744)Pension Obligation -
Domestic7,5548,1159,19110,4249,976--
11,71912,45615,09813,662Post-Retirement
Obligation2,0332,0892,3092,3381,757--
1,4671,4951,7291,544Plan Assets -
Domestic6,0096,9837,1868,2879,482--
9,99610,18011,84511,064Plan Assets - Post-
Retirement1,1811,3281,3391,5181,880--
1,9441,9612,3722,398Funded Status -
Domestic(1,545)(1,132)(2,005)(2,137)(495)--

13. (1,724)(2,276)(3,254)(2,598)Funded Status - Post-
Retirement(852)(761)(970)(820)122--
476467644854Accumulated Obligation - Domestic--
7,2308,2009,4609,130--2,0289,80511,95711,032Accumulated
Obligation - Post-Retirement2,0332,0892,3092,338----
246223225189Period End Assumptions--------------------
Discount Rate - Domestic5.90%5.90%5.60%5.00%4.90%--
4.30%3.90%3.40%3.90%Discount Rate - Post-
Retirement6.00%5.80%5.10%4.30%5.00%--
4.50%4.30%3.70%4.40%Compensation Rate -
Domestic3.70%3.70%3.70%3.40%3.40%--
3.40%3.40%3.40%3.40%Net Assets Recognized on Balance
Sheet2,5782,8762,9323,1133,231--
(1,486)(2,026)(2,828)(1,903)Prepaid Benefits - Domestic--------
881--26230107196Prepaid Benefits - Post-Retirement--------
366--7226898691,044Accrued Liabilities -
Domestic(1,545)(1,191)(2,166)(2,263)(1,376)--
(1,985)(2,306)(3,361)(2,794)Accrued Liabilities - Foreign-------
-----(239)(216)(218)(182)Accrued Liabilities - Post-
Retirement(852)(761)(970)(820)(244)--
(246)(223)(225)(167)Other Assets, Net -
Domestic3,8693,8534,9155,2433,597----------Other Assets, Net
- Post-Retirement1,1069741,1529537----------Asset Allocation--
------------------Equity % -
Domestic50.30%35.20%26.67%28.52%30.42%--
27.57%26.41%28.71%24.74%Equity % - Post-
Retirement20.40%14.13%10.31%11.40%10.99%--
9.50%9.43%9.51%7.79%Debt Securities % -
Domestic10.00%16.15%17.69%17.83%14.96%--
17.03%20.21%20.22%20.87%Debt Securities % - Post-
Retirement4.00%6.36%6.71%6.57%4.94%--
5.05%5.64%5.24%5.11%Real Estate % - Domestic--
1.81%5.69%6.08%5.50%--5.17%4.95%4.76%4.75%Real Estate
% - Post-Retirement----2.05%2.33%1.95%--
1.71%1.77%1.39%1.16%Private Investments % -
Domestic35.40%40.57%44.29%42.80%41.89%--

14. 42.96%41.84%39.04%42.88%Private Investments % - Post-
Retirement17.30%19.56%21.88%20.81%79.38%--
81.62%80.83%80.83%82.97%Other Investments % -
Domestic4.30%6.27%5.66%4.77%7.23%--
7.27%6.59%7.27%6.75%Other Investments % - Post-
Retirement58.30%59.95%59.05%58.89%2.73%--
2.11%2.32%3.03%2.97%Total Plan
Obligations9,58710,20411,50012,76211,734--
13,18713,95116,82715,206Total Plan
Assets7,1898,3118,5259,80511,361--11,93912,14114,21713,462
Eli Lilly and Co | Income StateEli Lilly and Co | Income
Statement | Thomson Reuters Eikon 22-
Apr-2019 22:28Eli Lilly and
CoLLYLast115.47cUSD0.270.23%Close115.47HoldIncome
StatementAnnual Standardised in Millions of U.S.
Dollars2009201020112012201320142015201620172018Earning
s Quality Score64 88 99 95 72 81 88 97 92 95 Period End
Date31-Dec-2009 31-Dec-2010 31-Dec-2011 31-Dec-2012 31-
Dec-2013 31-Dec-2014 31-Dec-2015 31-Dec-2016 31-Dec-
2017 31-Dec-2018 Period Length12 Months 12 Months 12
Months 12 Months 12 Months 12 Months 12 Months 12
Months 12 Months 12 Months Statement Date31-Dec-2009 31-
Dec-2010 31-Dec-2011 31-Dec-2012 31-Dec-2013 31-Dec-
2014 31-Dec-2015 31-Dec-2016 31-Dec-2017 31-Dec-
2018 Revenue21,83623,07624,28722,60323,11319,61619,95921,
22222,87124,556Net
Sales21,83623,07624,28722,60323,11319,61619,95921,22222,8
7124,556Other Revenue, Total--------------------Total
Revenue21,83623,07624,28722,60323,11319,61619,95921,2222
2,87124,556Cost of Revenue,
Total4,2474,3665,0684,7974,9084,9335,0375,6556,0706,430Cos
t of
Revenue4,2474,3665,0684,7974,9084,9335,0375,6556,0706,430
Gross
Profit17,58918,71019,21917,80718,20514,68314,92215,56716,8
0118,126Selling/General/Admin. Expenses,

15. Total6,8937,0537,8807,5147,1266,6216,5336,4526,5886,632Sel
ling/General/Administrative
Expense6,8937,0537,8807,5147,1266,6216,5336,4526,5886,632
Research &
Development4,3274,8845,0215,2785,5314,7344,7965,2445,2825
,307Depreciation/Amortization--------------------Interest
Expense, Net - Operating--------------------Interest/Investment
Income - Operating--------------------Interest Expense(Income) -
Net Operating--------------------Interest Exp.(Inc.),Net-
Operating, Total--------------------Unusual Expense
(Income)7832427892811786691,0694132,7862,466Purchased
R&D Written-Off9050388057200535301,1131,984Restructuring
Charge9914225275----141127697143Litigation23000-------------
-Impairment-Assets Held for
Use36450150207121469227256976339Other Unusual Expense
(Income)------------16700--Other Operating Expenses, Total----
0--------------Other, Net----0--------------Total Operating
Expense16,24916,54618,75817,86917,74316,95617,43617,7632
0,72620,835Operating
Income5,5876,5305,5294,7345,3702,6602,5233,4592,1453,721I
nterest Expense, Net Non-
Operating(261)(186)(186)(178)(160)(149)(161)(185)(225)(272)I
nterest Expense - Non-
Operating(292)(212)(212)(199)(160)(187)(216)(233)(282)(272)I
nterest Capitalized - Non-Operating30262621--38554857--
Interest/Invest Income - Non-
Operating75528010512012187109167161Interest Income - Non-
Operating75528010512012187109167161Interest Income(Exp),
Net Non-Operating--------------------Interest Inc.(Exp.),Net-
Non-Op.,
Total(186)(134)(106)(73)(40)(28)(74)(77)(58)(111)Gain (Loss)
on Sale of Assets--------------------Other,
Net(43)129(73)747559368342(8)110186Other Non-Operating
Income (Expense)(43)129(73)747559368342(8)110186Net
Income Before
Taxes5,3586,5255,3505,4085,8893,0002,7903,3742,1973,796Pr

16. ovision for Income
Taxes1,0291,4561,0021,3201,205610382636488388Net Income
After
Taxes4,3295,0704,3484,0894,6852,3912,4082,7381,7103,407Mi
nority Interest--------------------Equity In Affiliates---------------
-----U.S. GAAP Adjustment--------------------Net Income Before
Extra.
Items4,3295,0704,3484,0894,6852,3912,4082,7381,7103,407Ac
counting Change--------------------Discontinued Operations------
--------------Extraordinary Item----------------(1,914)(175)Tax on
Extraordinary Items--------------------Total Extraordinary Items-
---------------(1,914)(175)Net
Income4,3295,0704,3484,0894,6852,3912,4082,738(204)3,232P
referred Dividends--------------------General Partners'
Distributions--------------------Miscellaneous Earnings
Adjustment--------------------Pro Forma Adjustment---------------
-----Interest Adjustment - Primary EPS--------------------Total
Adjustments to Net Income--------------------Income Available
to Com Excl
ExtraOrd4,3295,0704,3484,0894,6852,3912,4082,7381,7103,40
7Income Available to Com Incl
ExtraOrd4,3295,0704,3484,0894,6852,3912,4082,738(204)3,232
Basic Weighted Average
Shares1,0981,1061,1141,1131,0811,0701,0621,0581,0521,028B
asic EPS Excluding Extraordinary
Items3.944.583.903.674.332.232.272.591.633.32Basic EPS
Including Extraordinary
Items3.944.583.903.674.332.232.272.59(0.19)3.14Dilution
Adjustment--------------------Diluted Net
Income4,3295,0704,3484,0894,6852,3912,4082,738(204)3,232D
iluted Weighted Average
Shares1,0981,1061,1141,1171,0851,0741,0661,0621,0521,034Di
luted EPS Excluding ExtraOrd
Items3.944.583.903.664.322.232.262.581.633.30Diluted EPS
Including ExtraOrd
Items3.944.583.903.664.322.232.262.58(0.19)3.13Supplemental

17. ($ Millions)DPS - Common Stock Primary
Issue1.961.961.961.961.961.962.002.042.082.25Dividends per
Share - Com Stock Issue 2--------------------Dividends per Share
- Com Stock Issue 3--------------------Dividends per Share - Com
Stock Issue 4--------------------Special DPS - Common Stock
Primary Issue--------------------Special DPS - Common Stock
Issue 2--------------------Special DPS - Common Stock Issue 3---
-----------------Special DPS - Common Stock Issue 4--------------
------Gross Dividends - Common
Stock2,1532,1672,1832,1872,1032,1082,1362,1682,2352,372Pro
Forma Stock Compensation Expense--------------------Net
Income after Stock Based Comp. Exp.--------------------Basic
EPS after Stock Based Comp. Exp.--------------------Diluted EPS
after Stock Based Comp. Exp.--------------------(Gain) Loss on
Sale of Assets, Suppl.--------------------Impairment-Assets Held
for Sale, Suppl.--------------------Impairment-Assets Held for
Use, Suppl.--------------------Litigation Charge, Supplemental---
-----------------Purchased R&D Written-Off, Supplemental-------
-------------Restructuring Charge, Supplemental--------------------
Other Unusual Expense(Income), Suppl.--------------------Non-
Recurring Items, Supplemental, Total--------------------Total
Special
Items7832427892811786691,0694132,7862,466Normalized
Income Before
Taxes6,1416,7676,1395,6896,0673,6693,8593,7874,9846,262Eff
ect of Special Items on Income
Taxes1334375692595737237149Inc Tax Ex Impact of Sp
Items1,1621,4991,0771,3881,229705455709859438Normalized
Income After
Taxes4,9785,2695,0624,3014,8382,9643,4053,0784,1255,824No
rmalized Inc. Avail to
Com.4,9785,2695,0624,3014,8382,9643,4053,0784,1255,824Bas
ic Normalized
EPS4.534.764.543.864.482.773.212.913.925.67Diluted
Normalized EPS4.534.764.543.854.462.763.192.903.925.63EPS,
Supplemental--------------------Funds From Operations - REIT---

18. -----------------Amort of Acquisition Costs, Supplemental--------
------------Amort of Intangibles,
Supplemental277386469563555536632688683559Amort. of
Right-of-Use Intang.Assets,Sup--------------------Depreciation,
Supplemental8147497327547758437968098841,050Depreciatio
n of Right-of-Use Assets,Sup.--------------------Interest Expense,
Supplemental261186186178160149161185225272Interest
Capitalized, Supplemental(30)(26)(26)(21)--(38)(55)(48)(57)--
Interest Expense on Lease Liabs., Suppl.--------------------
Interest Expense (Financial Oper), Suppl--------------------Net
Revenues--------------------Rental Expense,
Supplemental338256267286227227226221225223Labor &
Related Expense Suppl.--------------------Stock-Based
Compensation,
Supplemental369231147142145156218255281280Advertising
Expense, Supplemental--------------------Equity in Affiliates,
Supplemental--------------------Minority Interest, Supplemental--
------------------Income Taxes - Non-Recurring Tax Change------
----------1,914175Research & Development Exp,
Supplemental4,3274,8845,0215,2785,5314,7344,7965,2445,282
5,307Audit Fees8999910131315--Audit-Related
Fees112111111--Tax Fees113212675--All Other Fees00100000-
---Reported Recurring Revenue--------------------Reported Net
Premiums Written--------------------Reported Total Revenue------
--------------Reported Operating Revenue--------------------
Reported Total Cost of Revenue--------------------Reported Total
Sales, General & Admin.--------------------Reported Gross
Profit--------------------Reported Operating Profit------------------
--Reported Operating Profit Margin--------------------Reported
Ordinary Profit--------------------Reported Net Income After
Tax--------------------Reported Basic EPS--------------------
Reported Diluted EPS--------------------Reported Net Business
Profits--------------------Islamic Income--------------------Zakat---
-----------------Islamic Section, Supplemental--------------------
Normalized
EBIT6,3706,7726,3185,0155,5483,3293,5923,8714,9316,187Nor

19. malized
EBITDA7,4617,9077,5196,3326,8784,7085,0205,3686,4997,796
Tax & Pension Items ($ Millions)Current Tax -
Total8679131,4081,1949395731,130197(58)35Current Tax -
Domestic46376671597259169661(57)(101)(54)Current Tax -
Foreign7725147605415534064223793980Current Tax -
Local4923(23)56126(2)48(125)410Deferred Tax -
Total162542(406)12626637(748)440546353Deferred Tax -
Domestic83624(399)87297(83)(690)51780264Deferred Tax -
Foreign80(55)(35)30(28)120(66)(83)(256)286Deferred Tax -
Local0(27)279(3)07603Income Tax -
Total1,0291,4561,0021,3201,205610382636488388Income Tax
by Region - Total--------------------Domestic Pension Plan
Expense167184207313441243404244673257Interest Cost -
Domestic418432448455437473477421413461Service Cost -
Domestic242219236253287241316278331304Prior Service Cost
- Domestic899444101265Expected Return on Assets -
Domestic(585)(638)(686)(685)(702)(757)(782)(752)(776)(848)
Actuarial Gains and Losses -
Domestic85163200286415282383286288334Curtailments &
Settlements - Domestic----------------941Other Pension, Net -
Domestic----------------3170Foreign Pension Plan Expense-------
-----(91)(86)(90)(80)Prior Service Cost - Foreign------------
(91)(86)(90)(80)Post-Retirement Plan
Expense9110310711082(45)(95)(125)(30)(182)Interest Cost -
Post-Retirement120121118115988663535357Service Cost -
Post-Retirement54577263503345394642Prior Service Cost -
Post-
Retirement(36)(37)(43)(40)(36)(38)(91)(86)(90)(80)Expected
Return on Assets - Post-
Retir.(118)(123)(129)(127)(131)(146)(150)(150)(161)(178)Actu
arial Gains and Losses - Post-
Retir.72858998101213819186Curtailments & Settlements -
Post-Retir.----------------66(29)Other Post-Retirement, Net-------
---------380Total Pension
Expense38640743255052319821733553(4)Defined Contribution

20. Expense - Domestic128120118127------------Assumptions--------
------------Discount Rate -
Domestic6.70%5.90%5.60%5.00%4.30%4.90%4.00%4.30%3.90
%3.40%Discount Rate - Post-
Retirement6.90%6.00%5.80%5.10%4.30%5.00%4.10%4.50%4.3
0%3.70%Expected Rate of Return -
Domestic8.80%8.80%8.50%8.40%8.40%8.10%7.40%7.40%7.40
%7.30%Expected Rate of Return - Post-
Retir.9.00%9.00%8.80%8.80%8.80%8.50%8.00%8.00%8.00%8.
00%Compensation Rate -
Domestic4.10%3.70%3.70%3.70%3.40%3.40%3.40%3.40%3.40
%3.40%Total Plan Interest
Cost537553566570535558539474466518Total Plan Service
Cost296276309316337274361317378346Total Plan Expected
Return(703)(761)(815)(812)(833)(903)(932)(902)(937)(1,026)T
otal Plan Other Expense----------------3550Dividends and
Capital ChangesEli Lilly Ord ShsCash Dividend$0.49 I$0.49
I$0.49 I$0.49 I$0.49 I$0.50 I$0.51 I$0.52 I$0.56 I$0.65 I(14-
Dec) Ann. (13-Dec) Ann. (12-Dec) Ann. (17-Dec) Ann. (16-
Dec) Ann. (15-Dec) Ann. (08-Dec) Ann. (13-Dec) Ann. (11-
Dec) Ann. (19-Dec) Ann. $0.49 F$0.49 F$0.49 F$0.49 F$0.49
F$0.49 F$0.50 F$0.51 F$0.52 F$0.56 F(19-Oct) Ann. (18-Oct)
Ann. (17-Oct) Ann. (15-Oct) Ann. (21-Oct) Ann. (20-Oct)
Ann. (19-Oct) Ann. (17-Oct) Ann. (16-Oct) Ann. (15-Oct)
Ann. $0.49 I$0.49 I$0.49 I$0.49 I$0.49 I$0.49 I$0.50 I$0.51
I$0.52 I$0.56 I(22-Jun) Ann. (21-Jun) Ann. (20-Jun) Ann. (19-
Jun) Ann. (18-Jun) Ann. (16-Jun) Ann. (15-Jun) Ann. (20-Jun)
Ann. (19-Jun) Ann. (18-Jun) Ann. $0.49 I$0.49 I$0.49 I$0.49
I$0.49 I$0.49 I$0.50 I$0.51 I$0.52 I$0.56 I(20-Apr) Ann. (19-
Apr) Ann. (18-Apr) Ann. (16-Apr) Ann. (06-May) Ann. (05-
May) Ann. (04-May) Ann. (02-May) Ann. (01-May) Ann. (08-
May) Ann. Dividends & Capital Changes After Dec-2018Eli
Lilly Ord Shs2019Exchange OfferAdj. Factor 1x(30-Apr)
INSTRUCTIONS

21. Discussion #3.1: Employee Engagement
One popular measure of human capital today is employee
engagement, which is defined as the degree to which employees
focus, produce, innovate, contribute, and actively engage
organizational goals. How do you see engagement? What are
some of the examples of engagement metrics that an
organization may collect and assess? In what ways do
organizational actions across the “capital management star”
impact employee engagement?
Discussion #3.2: Cultural Assumptions
To fully engage the realities around human capital and return on
investment, some cultural assumptions must be made that
ensures the prohibition of silo development in an organization.
Please define and give an example of a cultural assumption.
What cultural assumptions can be developed that mitigate and
prohibit silo development within organizations?
FIN469 Investment Analysis Deliverable Template
Spring 2019
Please answer – and provide the data to substantiate - the
following items in your deliverable for your assigned company.
This project’s main deliverable should not exceed eight pages,
front & back, 12 font, double spaced (although you may include
an appendix of any length or form necessary).
1) Download and provide the last five years income statements.
Download and provide the last five years cash flow statements.
Download and provide the last five years balance sheets.
Please include a brief paragraph for each statement that
provides the story for each. The story may suggest issues of

22. profitability, cash flow, growth, etc.
For these last five years, importantly, provide the adjustments
and/or calculations for the free cash flows needed for the
Discounted Free Cash Flow (DCF) model, either has an addition
to the income statement or as a separate statement. Highlight
this.
2) Highlight the abbreviated forecast of the next five years
income statement, explicitly – and only - providing any line
items and explanations that are material to your investment
story. The only line items I want / need to see are the critical
ones to your forecast.
Highlight the abbreviated forecast of the next five years cash
flow statement, explicitly – and only - providing any line item
explanations that are material to your investment story.
Highlight the abbreviated forecast of the next five-year DCF
forecasts (i.e., year by year) and the normalized, constant
growth calculation for forecast years 6 to infinity. Again,
highlight this.
3) Provide a DCF model based valuation range, explaining in
brief, your inputs. This range will serve as an “absolute
valuation” metric and will be calculated by discounting your
individual five year FCFF forecasts by a realistic WACC,
discounting the constant growth by the WACC, subtracting out
debt and dividing by shares outstanding. Highlight this
absolute valuation range.
4) Provide 10-year price/earnings, price/book, and price/sales
charts, commenting on today’s relative valuation AND
providing the forecasted P/E, etc. metrics that you selected to
use in your forecasts. For example, substantiate your P/E ratio
and earnings per share forecast inputs that will provide your P/E
valuation. These “relative values” will serve as range value
inputs for your final valuation range. Highlight this relative
valuation range.
Note: The DCF absolute value range will be combined with the

23. P/metric relative value ranges to form a final range of value.
For example, if the DCF suggests $38/share and the P/metrics
suggest $34–37, your valuation range – combining the absolute
and relative values – would be $34–38/share.
5) Discuss the important “systematic factors” (inflation, interest
rates, industrial production, etc.) that you believe will drive this
security’s return, explaining why you chose to include the ones
that you did. You may wish to supply a simply regression to
prove your point (hint)….
6) Discuss the important “fundamentals” (profitability, growth,
cash flows, etc.) that you believe will drive this security’s
future return, explaining why you chose the ones that you did.
Comment also on the “embedded expectations” that you believe
the market is focusing on (please recall that any good analysis
is about understanding the embedded expectations in the market
price and how those expectations change so as to drive a higher
or lower price).
7) Given your analysis, would you recommend a buy or a sell on
this equity security? Explain your recommendation in a
“summary paragraph” that you would provide as an executive
summary with your employer. Highlight this in a single
paragraph, seeking to make sure it is an accurate and complete
storyline of your analysis.
8) Provide the duration, convexity, and yield to maturity of any
fixed income instrument of this company that matures after
2025.
9) Provide the Black-Scholes valuation of any option of this
company that expires within the next 12 months (please be sure
to provide your inputs as well as a brief discussion of your
volatility assumptions). Briefly compare your valuation (V) to
that last price (P) traded in the market.