Illumina Inc (ILMN)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-1,222,000	-1,585,000	-3,044,000	-1,290,000	-1,161,000	-1,124,000	-4,186,000	-4,487,000	-4,404,000	-4,152,000	-19,000	701,000	762,000	906,000	768,000	630,000	656,000	638,000	693,000	942,000
Revenue (ttm)	US$ in thousands	4,372,000	4,390,000	4,429,000	4,493,000	4,504,000	4,465,000	4,461,000	4,447,000	4,583,000	4,699,000	4,692,000	4,656,000	4,526,000	4,280,000	3,966,000	3,473,000	3,239,000	3,238,000	3,351,000	3,556,000
Net profit margin		-27.95%	-36.10%	-68.73%	-28.71%	-25.78%	-25.17%	-93.84%	-100.90%	-96.09%	-88.36%	-0.40%	15.06%	16.84%	21.17%	19.36%	18.14%	20.25%	19.70%	20.68%	26.49%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-1,222,000K ÷ $4,372,000K
= -27.95%

Illumina Inc's net profit margin has displayed a fluctuating trend over the past few years, starting at a healthy 26.49% as of March 31, 2020, and gradually declining to negative values by the end of 2024. The margin peaked at 21.17% on September 30, 2021, before entering negative territory in June 30, 2022.

The negative net profit margins suggest that the company's expenses have outpaced its revenues during these periods, resulting in operating losses. This downturn in profitability could be a cause for concern as sustained negative margins may indicate financial distress or inefficiencies in the company's operations.

It is essential for Illumina Inc to assess its cost structure, revenue streams, and overall business strategy to reverse this concerning trend and work towards achieving sustainable and positive net profit margins in the future.