Illumina Inc (ILMN)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,504,000 | 4,465,000 | 4,461,000 | 4,447,000 | 4,583,000 | 4,699,000 | 4,692,000 | 4,656,000 | 4,526,000 | 4,280,000 | 3,966,000 | 3,473,000 | 3,239,000 | 3,238,000 | 3,351,000 | 3,556,000 | 3,543,000 | 3,458,000 | 3,404,000 | 3,396,000 |
| Total current assets | US$ in thousands | 2,609,000 | 2,506,000 | 3,223,000 | 3,172,000 | 3,561,000 | 2,487,000 | 2,891,000 | 2,755,000 | 2,713,000 | 2,451,000 | 5,310,000 | 5,642,000 | 4,483,000 | 4,329,000 | 4,194,000 | 4,324,000 | 4,451,000 | 4,222,000 | 4,156,000 | 4,545,000 |
| Total current liabilities | US$ in thousands | 1,570,000 | 1,482,000 | 2,303,000 | 2,230,000 | 2,773,000 | 2,669,000 | 2,881,000 | 1,490,000 | 1,093,000 | 914,000 | 874,000 | 1,268,000 | 1,244,000 | 1,115,000 | 1,115,000 | 1,054,000 | 665,000 | 619,000 | 612,000 | 1,241,000 |
| Working capital turnover | 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 | 0.94 | 0.96 | 0.96 | 1.03 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,504,000K ÷ ($2,609,000K – $1,570,000K)
= 4.33
The working capital turnover ratio measures how efficiently a company is able to generate sales revenue with its working capital. Illumina Inc's working capital turnover has fluctuated over the quarters provided in the table.
In Q4 2023, the working capital turnover was 4.33, indicating that Illumina generated $4.33 in sales revenue for every dollar of working capital invested. This ratio increased slightly from the previous quarter, Q3 2023, where it was 4.36.
Comparing recent quarters, Q2 2023 had the highest working capital turnover of 4.85, suggesting that Illumina was able to generate sales more efficiently during that period. Q1 2023 also had a relatively strong ratio of 4.72.
In contrast, in Q4 2022, the working capital turnover was significantly higher at 5.82, indicating a better efficiency in generating sales compared to the recent quarters. There is a missing value in Q3 2022, making it difficult to assess the trend continuously.
Overall, the trend in Illumina Inc's working capital turnover shows some variability, with fluctuations in efficiency in converting working capital into sales revenue. It is important for the company to monitor this ratio consistently to ensure optimal utilization of working capital for revenue generation.
Peer comparison
Dec 31, 2023