Illumina Inc (ILMN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,048,000 | 2,011,000 | 1,232,000 | 1,810,000 | 2,042,000 |
| Short-term investments | US$ in thousands | 6,000 | 26,000 | 107,000 | 1,662,000 | 1,372,000 |
| Total current liabilities | US$ in thousands | 1,570,000 | 2,773,000 | 1,093,000 | 1,244,000 | 665,000 |
| Cash ratio | 0.67 | 0.73 | 1.23 | 2.79 | 5.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,048,000K
+ $6,000K)
÷ $1,570,000K
= 0.67
The cash ratio of Illumina Inc has experienced a downward trend over the last five years. The ratio was 0.82 as of December 31, 2023, showing a decline from the previous year's ratio of 0.84. This decrease indicates a lower ability of the company to cover its short-term liabilities using its cash and cash equivalents.
Comparing the current ratio to the ratios of the previous years, we observe a significant decrease from 2.91 on January 3, 2021, to the current level of 0.82. This indicates a notable reduction in the company's liquidity position over the past three years.
Furthermore, the current cash ratio of 0.82 as of December 31, 2023, is substantially lower than the ratio of 5.29 reported on December 29, 2019. This sharp decline suggests a significant decrease in the company's ability to meet its short-term obligations solely through its available cash reserves.
Overall, the declining trend in Illumina Inc's cash ratio highlights a potential liquidity concern that may require further investigation and management attention to ensure the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023