Illumina Inc (ILMN)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-1,069,000	-4,179,000	-123,000	580,000	985,000
Total assets	US$ in thousands	10,111,000	12,252,000	15,217,000	7,585,000	7,316,000
Operating ROA		-10.57%	-34.11%	-0.81%	7.65%	13.46%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-1,069,000K ÷ $10,111,000K
= -10.57%

Operating Return on Assets (Operating ROA) measures how efficiently a company generates operating income from its assets. A higher operating ROA indicates better asset utilization and profitability.

Illumina Inc's operating ROA has shown a declining trend over the past five years.

- In 2023, the operating ROA was -2.20%, indicating that the company incurred an operating loss relative to its assets.
- In 2022, the operating ROA improved to 2.89%, suggesting that the company was able to generate operating income, although not very efficiently.
- In 2021, the operating ROA was -0.81%, indicating a decrease in profitability compared to the previous year.
- In 2020, the operating ROA significantly improved to 7.65%, indicating a strong ability to generate operating income relative to its assets.
- In 2019, the operating ROA was at its highest level at 13.46%, reflecting a very efficient use of assets to generate operating income.

Overall, the declining trend in operating ROA for Illumina Inc raises concerns about its ability to effectively utilize its assets to generate operating income. Investors and stakeholders may need to further investigate the reasons behind this trend and assess the company's operational efficiency and profitability prospects.