Illumina Inc (ILMN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	2.76	2.76	3.00	2.97	3.00	2.80	2.73	2.79	2.84	2.83	2.94	3.12	3.19	3.28	3.27	3.09	2.78	2.42	2.29	2.74
Receivables turnover	5.95	6.28	6.91	7.08	6.14	6.47	6.02	—	6.83	—	—	—	6.98	—	—	—	—	—	—	—
Payables turnover	6.84	8.29	8.46	8.64	7.18	7.18	6.91	6.76	5.50	5.63	5.40	4.99	4.14	5.30	6.22	6.32	5.40	6.43	7.36	8.11
Working capital turnover	3.65	3.14	17.65	4.05	4.33	4.36	4.85	4.72	5.82	—	469.20	3.68	2.79	2.78	0.89	0.79	1.00	1.01	1.09	1.09

Illumina Inc's activity ratios provide insights into the efficiency of the company's operations. Here is a detailed analysis based on the data provided:

1. Inventory Turnover:
- Illumina Inc's inventory turnover has been consistently fluctuating between 2.29 to 3.28 over the past few years.
- The company's inventory turnover improved from 2.29 in June 2020 to 3.28 in September 2021 before stabilizing around 3.00 in the most recent periods.
- The increasing trend in inventory turnover indicates that Illumina is managing its inventory more efficiently and selling its products at a faster rate.

2. Receivables Turnover:
- Illumina Inc's receivables turnover data is incomplete, with values only available from December 2021 onwards.
- The receivables turnover ratio showed an increasing trend from 6.14 in December 2023 to 7.08 in March 2024, suggesting that the company is collecting its receivables more quickly.

3. Payables Turnover:
- Illumina Inc's payables turnover has been fluctuating between 4.14 to 8.64 over the past few years.
- The payables turnover ratio increased from 4.14 in December 2021 to 8.64 in March 2024, indicating that the company is paying its suppliers at a faster rate.
- A higher payables turnover can imply better cash flow management and stronger relationships with suppliers.

4. Working Capital Turnover:
- Illumina's working capital turnover has shown significant variability, ranging from 0.79 to 469.20.
- The ratio dipped in March 2021, indicating a temporary decrease in operational efficiency. However, it has since shown a strong recovery and upward trend, reaching 17.65 in June 2024.
- The sharp increase in working capital turnover from June 2022 to June 2024 suggests significant improvements in the company's ability to generate sales relative to its working capital.

Overall, Illumina Inc's activity ratios reflect improvements in inventory management, receivables collection, payables management, and working capital efficiency, indicating enhanced operational performance and potential for future growth.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	132.13	132.35	121.67	122.79	121.81	130.36	133.65	130.74	128.61	128.89	124.14	116.89	114.58	111.39	111.50	118.10	131.06	151.02	159.73	132.98
Days of sales outstanding (DSO)	days	61.36	58.12	52.83	51.59	59.48	56.41	60.63	—	53.44	—	—	—	52.26	—	—	—	—	—	—	—
Number of days of payables	days	53.39	44.04	43.16	42.26	50.84	50.87	52.85	53.99	66.34	64.79	67.58	73.15	88.26	68.89	58.68	57.75	67.64	56.77	49.57	45.02

Illumina Inc's activity ratios provide insight into how efficiently the company manages its assets and operations.

1. Days of Inventory on Hand (DOH):
- Illumina's DOH has shown fluctuating trends over the past few years, ranging from a high of 159.73 days in June 2020 to a low of 111.39 days in September 2021.
- The company seems to have made improvements in managing its inventory more efficiently, as the DOH has generally decreased over time, indicating faster inventory turnover.
- A lower DOH suggests that Illumina is more effective in selling its products and converting inventory into sales.

2. Days of Sales Outstanding (DSO):
- Illumina's DSO data is not available for most periods but has been gradually decreasing in the years where data is provided (December 2021 to December 2024).
- A declining DSO indicates that the company is collecting receivables faster, improving its cash flow cycle and reducing the risk of bad debts.
- The trend suggests that Illumina has been effective in managing its accounts receivable turnover.

3. Number of Days of Payables:
- Illumina's payables period has generally shown a decreasing trend from a high of 88.26 days in December 2021 to a low of 42.26 days in March 2024.
- A shorter payables period indicates that the company is taking longer to pay its suppliers, possibly improving relationships with suppliers or taking advantage of favorable credit terms.
- This trend could signal more efficient cash management practices by Illumina, although it's essential to strike a balance between paying suppliers promptly and maintaining liquidity.

Overall, the analysis of Illumina Inc's activity ratios suggests that the company has been progressively improving its inventory management, accounts receivable collection, and payables turnover, which are positive indicators of operational efficiency and effective working capital management.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	5.36	5.28	5.16	4.66	4.47	4.29	4.17	4.11	4.20	4.40	4.45	4.50	4.42	4.24	4.33	3.80	3.51	3.56	3.77	4.00
Total asset turnover	0.69	0.73	0.73	0.45	0.45	0.44	0.38	0.38	0.37	0.42	0.30	0.30	0.30	0.28	0.46	0.40	0.43	0.44	0.46	0.49

Illumina Inc's long-term activity ratios show positive trends over the analyzed periods.

1. Fixed Asset Turnover: This ratio measures how efficiently a company is using its fixed assets to generate sales. Illumina Inc's Fixed Asset Turnover has been steadily increasing from 4.00 in March 2020 to 5.36 in December 2024. This indicates that the company is becoming more efficient in utilizing its fixed assets to generate revenue over time.

2. Total Asset Turnover: This ratio evaluates how effectively a company is utilizing all its assets to generate sales. Illumina Inc's Total Asset Turnover fluctuated over the years, with a noticeable increase from 0.28 in September 2021 to 0.73 in June 2024. This improvement suggests that the company is utilizing its total assets more effectively to generate revenue.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios reflects Illumina Inc's improving operational efficiency and ability to generate sales relative to its asset base. It signifies effective management of resources and indicates potential for continued growth and profitability in the long term.