Illumina Inc (ILMN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,127,000 | 1,048,000 | 2,011,000 | 1,232,000 | 1,810,000 |
| Short-term investments | US$ in thousands | 93,000 | 6,000 | 26,000 | 107,000 | 1,662,000 |
| Total current liabilities | US$ in thousands | 1,547,000 | 1,570,000 | 2,773,000 | 1,093,000 | 1,244,000 |
| Cash ratio | 0.79 | 0.67 | 0.73 | 1.23 | 2.79 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,127,000K
+ $93,000K)
÷ $1,547,000K
= 0.79
The cash ratio of Illumina Inc has experienced a downward trend over the past five years, declining from 2.79 in December 2020 to 0.79 in December 2024. This indicates a decrease in the company's ability to cover its current liabilities with its cash and cash equivalents. While a higher cash ratio is generally preferred as it signifies a stronger liquidity position, a ratio above 1 is considered satisfactory. Illumina's cash ratio has remained above 1 throughout the period, indicating that the company has had sufficient cash on hand to cover its short-term obligations. However, the decreasing trend suggests a potential need for further monitoring of the company's liquidity management to ensure it can meet its short-term financial obligations effectively in the future.
Peer comparison
Dec 31, 2024