Illumina Inc (ILMN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.44% | 60.92% | 64.83% | 69.69% | 68.01% |
| Operating profit margin | -19.05% | -23.73% | -91.16% | -2.72% | 17.91% |
| Pretax margin | -26.97% | -24.80% | -94.59% | 19.53% | 26.43% |
| Net profit margin | -27.97% | -25.78% | -96.07% | 16.84% | 20.25% |
Illumina Inc has shown a fluctuating trend in its profitability ratios over the years. The Gross Profit Margin, which indicates the percentage of revenue left after deducting the cost of goods sold, has ranged from 60.92% in December 2023 to 69.69% in December 2021. This ratio has generally been strong, with a slight decrease noted in December 2022.
However, the Operating Profit Margin, which reflects the proportion of revenue left after deducting operating expenses, has shown inconsistency. The company had negative operating profit margins in December 2021, December 2022, December 2023, and December 2024. This indicates that Illumina Inc's operating expenses have outpaced its operating income during these periods.
Similarly, the Pretax Margin, representing the percentage of revenue remaining after deducting all expenses except for income taxes, has also been negative from December 2022 to December 2024. This suggests that the company's profitability before taxes has been significantly impacted during these years.
Furthermore, the Net Profit Margin, which shows the percentage of revenue remaining after all expenses including taxes, has also been negative from December 2022 to December 2024. This indicates that Illumina Inc's bottom line profitability has faced challenges, resulting in net losses during those periods.
In conclusion, while Illumina Inc has maintained a relatively stable Gross Profit Margin, its Operating Profit Margin, Pretax Margin, and Net Profit Margin have been affected negatively in recent years, indicating potential operational and financial difficulties impacting the company's overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -13.22% | -10.57% | -34.11% | -0.81% | 7.65% |
| Return on assets (ROA) | -19.40% | -11.48% | -35.95% | 5.01% | 8.65% |
| Return on total capital | -21.56% | -14.38% | -51.68% | 7.60% | 16.86% |
| Return on equity (ROE) | -51.54% | -20.21% | -66.74% | 7.09% | 13.98% |
Based on the provided data, we can observe the following profitability ratios for Illumina Inc over the period from December 31, 2020, to December 31, 2024:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Illumina Inc has shown a decline over the years, starting at 7.65% in 2020 and decreasing to -13.22% by the end of 2024. This signifies a deterioration in the company's ability to generate profits from its operational assets.
2. Return on Assets (ROA):
- The ROA also demonstrates a similar trend of decreasing profitability, starting at 8.65% in 2020 and dropping to -19.40% in 2024. This indicates a reduction in the company's efficiency in generating profits from its total assets.
3. Return on Total Capital:
- The Return on Total Capital ratio depicts a substantial decrease over the period, plunging from 16.86% in 2020 to -21.56% in 2024. This indicates a significant decline in the company's ability to generate returns relative to its total capital employed.
4. Return on Equity (ROE):
- The Return on Equity ratio has also experienced a notable decline, starting at 13.98% in 2020 and reaching -51.54% in 2024. This signifies a decrease in the company's ability to generate returns for its shareholders from the equity invested.
In summary, the profitability ratios of Illumina Inc have exhibited a consistent downward trend, indicating challenges in effectively utilizing assets, capital, and equity to generate profits and returns for the business and its shareholders.