Illumina Inc (ILMN)
Working capital 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 current assets | US$ in thousands | 2,609,000 | 3,561,000 | 2,713,000 | 4,483,000 | 4,451,000 |
| Total current liabilities | US$ in thousands | 1,570,000 | 2,773,000 | 1,093,000 | 1,244,000 | 665,000 |
| Working capital turnover | 4.33 | 5.82 | 2.79 | 1.00 | 0.94 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,504,000K ÷ ($2,609,000K – $1,570,000K)
= 4.33
The working capital turnover for Illumina Inc has shown an increasing trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has steadily increased from 0.94 in December 2019 to 4.33 in December 2023. This suggests that Illumina Inc is generating sales revenue at a faster pace relative to its investment in working capital. The significant improvement in the ratio reflects the company's ability to effectively utilize its current assets and liabilities to support its operations and drive revenue growth. Overall, the upward trend in working capital turnover reflects positively on Illumina Inc's operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023