Illumina Inc (ILMN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -833,000 | -1,069,000 | -4,179,000 | -123,000 | 580,000 |
| Total assets | US$ in thousands | 6,303,000 | 10,111,000 | 12,252,000 | 15,217,000 | 7,585,000 |
| Operating ROA | -13.22% | -10.57% | -34.11% | -0.81% | 7.65% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-833,000K ÷ $6,303,000K
= -13.22%
The operating return on assets (operating ROA) for Illumina Inc has exhibited a notable fluctuation over the past five years. In December 2020, the operating ROA stood at 7.65%, indicating that the company generated a positive return on its assets through its operations. However, the trend reversed in the subsequent years, with the operating ROA turning negative.
By December 2021, the operating ROA plummeted to -0.81%, signifying a decline in the company's ability to generate profits from its assets. The negative trend continued in the following years, reaching -34.11% in December 2022, -10.57% in December 2023, and -13.22% in December 2024.
This downward trajectory in the operating ROA suggests that Illumina Inc may be facing challenges in efficiently utilizing its assets to generate operating profits. It is important for the company to closely evaluate its operational strategies and financial performance to potentially improve its return on assets in the future.
Peer comparison
Dec 31, 2024