Illumina Inc (ILMN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.66 | 1.69 | 1.40 | 1.42 | 1.28 | 0.93 | 1.00 | 1.85 | 2.48 | 2.68 | 6.08 | 4.45 | 3.60 | 3.88 | 3.76 | 4.10 | 6.69 | 6.82 | 6.79 | 3.66 |
| Quick ratio | 1.14 | 1.10 | 1.00 | 0.68 | 0.98 | 0.39 | 0.46 | 0.95 | 1.82 | 1.38 | 4.90 | 3.65 | 2.79 | 2.98 | 2.93 | 3.16 | 5.13 | 5.11 | 5.18 | 2.91 |
| Cash ratio | 0.67 | 0.63 | 0.68 | 0.68 | 0.73 | 0.39 | 0.46 | 0.95 | 1.23 | 1.38 | 4.90 | 3.65 | 2.79 | 2.98 | 2.93 | 3.16 | 5.13 | 5.11 | 5.18 | 2.91 |
Over the past eight quarters, Illumina Inc's liquidity ratios have shown fluctuations, indicating varying levels of the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally been above 1, indicating a healthy liquidity position. However, it fluctuated between 0.93 in Q3 2022 to 1.69 in Q3 2023. A higher current ratio suggests that Illumina has a stronger ability to cover its short-term obligations.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Like the current ratio, the quick ratio has generally been above 1, but it is lower than the current ratio. The fluctuations in the quick ratio mirrored those of the current ratio, ranging from 0.72 in Q3 2022 to 1.28 in Q3 2023.
The cash ratio, which is the strictest measure of liquidity as it only considers cash and cash equivalents, also remained above 1 in most quarters. However, it showed more variability compared to the current and quick ratios, ranging from 0.49 in Q3 2022 to 0.86 in Q1 2023.
Overall, while Illumina Inc's liquidity ratios have shown some fluctuations, the company has generally maintained a strong liquidity position over the past eight quarters, with the ability to cover its short-term obligations.
See also:
Illumina Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 130.45 | 135.89 | 141.43 | 76.75 | 115.71 | 64.10 | 56.56 | 43.74 | 78.58 | 42.50 | 52.81 | 60.35 | 63.42 | 94.25 | 110.16 | 87.96 | 71.24 | 94.08 | 96.76 | 95.60 |
The cash conversion cycle of Illumina Inc has been fluctuating over the past eight quarters. The company's cash conversion cycle measures the time it takes for Illumina to convert its investments in inventory and accounts receivable into cash from sales.
Looking at the trend, there is a general increase in the cash conversion cycle from Q1 2022 to Q2 2023, indicating that Illumina is taking longer to convert its resources into cash. This may be a sign of potential inefficiencies in managing inventory or collecting accounts receivable.
It is important for Illumina to closely monitor its cash conversion cycle and identify areas where improvements can be made to shorten the cycle. Efficiency in inventory management, timely collection of receivables, and effective payment practices can all contribute to reducing the cash conversion cycle and improving the company's overall liquidity and financial performance.