Illumina Inc (ILMN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.92% | 64.83% | 69.69% | 68.01% | 69.63% |
| Operating profit margin | -23.73% | -91.16% | -2.72% | 17.91% | 27.80% |
| Pretax margin | -24.80% | -94.59% | 19.53% | 26.43% | 31.89% |
| Net profit margin | -25.78% | -96.07% | 16.84% | 20.25% | 28.28% |
Illumina Inc's profitability ratios show a declining trend in recent years. The gross profit margin has decreased from 70.59% in 2019 to 65.16% in 2023, indicating a reduction in profitability of sales after deducting the cost of goods sold.
The operating profit margin has experienced significant fluctuations, with a negative margin of -4.93% in 2023 compared to 27.80% in 2019. This suggests that the company's operating expenses are impacting profitability more negatively in recent years.
The pretax margin also reflects a downward trend, with a negative margin of -24.80% in 2023 compared to 31.56% in 2019. This indicates that Illumina Inc's pre-tax earnings are declining, possibly due to higher expenses or lower revenues.
Similarly, the net profit margin has decreased from 28.28% in 2019 to -25.78% in 2023. This indicates that the company's overall profitability after accounting for all expenses and taxes has significantly deteriorated.
In conclusion, based on the profitability ratios analyzed, Illumina Inc's financial performance has weakened in recent years, with declining margins across all levels, which may require attention and strategic actions to improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.57% | -34.11% | -0.81% | 7.65% | 13.46% |
| Return on assets (ROA) | -11.48% | -35.95% | 5.01% | 8.65% | 13.70% |
| Return on total capital | -14.38% | -51.68% | 7.60% | 16.86% | 20.54% |
| Return on equity (ROE) | -20.21% | -66.74% | 7.09% | 13.98% | 21.72% |
Illumina Inc's profitability ratios have demonstrated variability over the past five years.
- Operating return on assets (Operating ROA) has fluctuated, ranging from a low of -2.20% in 2023 to a high of 13.46% in 2019. This metric indicates the company's ability to generate operational profits relative to its total assets.
- Return on assets (ROA) has shown significant negative values, with -11.48% in 2023 and -35.95% in 2022. This suggests that the company has struggled to generate profits from its assets during these periods.
- Return on total capital has also been volatile, ranging from a low of -3.07% in 2023 to a high of 17.12% in 2019. This ratio reflects the company's ability to generate returns from both debt and equity capital investments.
- Return on equity (ROE) has similarly varied, showing negative values in recent years, with -20.21% in 2023 and -66.74% in 2022. ROE measures the company's ability to generate profits from shareholders' equity.
Overall, the trend in profitability ratios for Illumina Inc indicates a mixed performance, with some years of strong returns but also noticeable periods of underperformance. Investors and stakeholders may need to closely monitor the company's financial health and operational efficiency to assess its future profitability prospects.