Illumina Inc (ILMN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,609,000 | 3,561,000 | 2,713,000 | 4,483,000 | 4,451,000 |
| Total current liabilities | US$ in thousands | 1,570,000 | 2,773,000 | 1,093,000 | 1,244,000 | 665,000 |
| Current ratio | 1.66 | 1.28 | 2.48 | 3.60 | 6.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,609,000K ÷ $1,570,000K
= 1.66
Over the past five years, Illumina Inc's current ratio has displayed fluctuations. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
In 2019, Illumina Inc had a very high current ratio of 6.69, indicating a strong ability to cover its short-term obligations with its current assets. However, this ratio decreased significantly over the years, dropping to 3.60 in 2021, reflecting a decline in the company's liquidity position.
In 2022, the current ratio increased to 2.48, suggesting an improvement in Illumina Inc's ability to meet its short-term financial commitments. This trend continued in 2023, with the current ratio further increasing to 1.66. While the ratio has improved compared to the previous year, it is still below the levels seen in 2019.
Overall, Illumina Inc's current ratio has shown variability over the years, with recent improvements indicating a strengthening liquidity position. However, it is important for the company to maintain adequate liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023