Illumina Inc (ILMN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,372,000 | 4,390,000 | 4,429,000 | 4,493,000 | 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 |
| Total current assets | US$ in thousands | 2,746,000 | 2,373,000 | 2,459,000 | 2,583,000 | 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 |
| Total current liabilities | US$ in thousands | 1,547,000 | 975,000 | 2,208,000 | 1,474,000 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,372,000K ÷ ($2,746,000K – $1,547,000K)
= 3.65
The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales, while a lower ratio suggests inefficiency in utilizing working capital.
Analyzing the data provided for Illumina Inc, we observe the following trends in the working capital turnover ratio:
- The ratio remained relatively stable around 1.0 during the first three quarters of 2020, indicating a consistent level of efficiency in utilizing working capital during that period.
- There was a slight decline in the ratio in the first half of 2021, suggesting a potential decrease in the efficiency of working capital utilization.
- A significant increase in the ratio in the latter half of 2021 and into 2022 indicates a marked improvement in the company's ability to generate sales relative to its working capital.
- The ratio spiked dramatically in the second quarter of 2022 to 469.20, which is an outlier compared to previous periods and may require further investigation.
- Subsequent quarters in 2022 and 2023 saw the ratio decline but still maintained relatively higher levels compared to previous years.
- Towards the end of 2024, the ratio experienced some fluctuations but remained above 3.0, indicating that Illumina was efficiently utilizing its working capital to generate sales revenue during this period.
Overall, the working capital turnover ratio for Illumina Inc shows varying levels of efficiency in utilizing working capital over the years, with some quarters demonstrating significant improvement or deviation from the historical trend. Monitoring and analyzing this ratio can provide insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024