Illumina Inc (ILMN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,372,000 | 4,504,000 | 4,584,000 | 4,526,000 | 3,239,000 |
| Total current assets | US$ in thousands | 2,746,000 | 2,609,000 | 3,561,000 | 2,713,000 | 4,483,000 |
| Total current liabilities | US$ in thousands | 1,547,000 | 1,570,000 | 2,773,000 | 1,093,000 | 1,244,000 |
| Working capital turnover | 3.65 | 4.33 | 5.82 | 2.79 | 1.00 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,372,000K ÷ ($2,746,000K – $1,547,000K)
= 3.65
The working capital turnover for Illumina Inc has shown a positive trend over the five years from 2020 to 2024, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales revenue.
In 2020, the working capital turnover was at 1.00, which means that the company generated $1 of revenue for every $1 of working capital invested. Over the following years, there was a significant increase in the working capital turnover ratio, reaching 5.82 by the end of 2022. This suggests that Illumina was able to generate $5.82 in revenue for every dollar of working capital invested in 2022.
However, there was a slight decline in 2023 and 2024, with the working capital turnover ratios dropping to 4.33 and 3.65 respectively. While these ratios are lower than the peak in 2022, they still indicate that Illumina Inc continues to effectively utilize its working capital to generate sales.
Overall, the increasing trend in the working capital turnover ratios reflects positively on Illumina's ability to efficiently manage its working capital and convert it into revenue, with some fluctuations in recent years.
Peer comparison
Dec 31, 2024