Illumina Inc (ILMN)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash 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
Receivables US$ in thousands 734,000 671,000 648,000 487,000 573,000
Total current liabilities US$ in thousands 1,570,000 2,773,000 1,093,000 1,244,000 665,000
Quick ratio 1.14 0.98 1.82 3.18 6.00

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,048,000K + $6,000K + $734,000K) ÷ $1,570,000K
= 1.14

The quick ratio of Illumina Inc has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.

In 2023, the quick ratio was 1.29, indicating that Illumina had $1.29 in liquid assets available for every $1 of current liabilities. This suggests that the company was able to cover its short-term obligations adequately.

Comparing this to the quick ratio of the previous years, we observe a decreasing trend from 2022 to 2023. The quick ratio was 1.08 in 2022, slightly lower than in 2023, implying a slight decrease in liquidity.

The quick ratio was significantly higher in the two preceding years, with a ratio of 2.09 in 2021, 3.30 in 2020, and 6.15 in 2019. These ratios indicate that Illumina had higher levels of liquid assets relative to current liabilities in those years, suggesting stronger liquidity positions.

Overall, the downward trend in the quick ratio from 2022 to 2023 may raise some concerns about Illumina's liquidity position. It would be essential to further investigate the reasons behind this trend and assess the company's ability to meet its short-term obligations in the coming periods.


Peer comparison

Dec 31, 2023


See also:

Illumina Inc Quick Ratio