Illumina Inc (ILMN)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,504,000 | 4,584,000 | 4,526,000 | 3,239,000 | 3,543,000 |
| Total assets | US$ in thousands | 10,111,000 | 12,252,000 | 15,217,000 | 7,585,000 | 7,316,000 |
| Total asset turnover | 0.45 | 0.37 | 0.30 | 0.43 | 0.48 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,504,000K ÷ $10,111,000K
= 0.45
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Illumina Inc's total asset turnover has fluctuated over the past five years, ranging from 0.30 in January 2022 to 0.48 in December 2019. A lower total asset turnover ratio indicates that the company is less efficient in utilizing its assets to generate sales.
Illumina Inc's total asset turnover ratio was 0.45 as of December 31, 2023, which suggests that the company generated $0.45 in sales for every dollar of total assets during that period. This represents an improvement from the previous year when the ratio was 0.37. Despite this improvement, the company's total asset turnover ratio is lower than the peak ratio of 0.48 reported in December 2019.
The increase in total asset turnover from the prior year indicates that Illumina Inc has become more efficient in utilizing its assets to generate sales revenue. However, management may need to continue focusing on improving asset efficiency to drive further growth and profitability.
Overall, the trend in Illumina Inc's total asset turnover suggests that the company has been able to improve its asset utilization efficiency over the years, but there may still be room for further enhancement in the future.
Peer comparison
Dec 31, 2023