Illumina Inc (ILMN)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-1,070,000	-1,033,000	-3,936,000	-4,427,000	-4,179,000	-4,011,000	-899,000	-133,000	-124,000	-32,000	675,000	584,000	580,000	715,000	861,000	970,000	985,000	914,000	847,000	869,000
Total assets	US$ in thousands	10,111,000	10,122,000	11,774,000	11,811,000	12,252,000	11,256,000	15,448,000	15,274,000	15,217,000	15,063,000	8,675,000	8,755,000	7,585,000	7,404,000	7,248,000	7,261,000	7,316,000	7,089,000	6,973,000	7,390,000
Operating ROA		-10.58%	-10.21%	-33.43%	-37.48%	-34.11%	-35.63%	-5.82%	-0.87%	-0.81%	-0.21%	7.78%	6.67%	7.65%	9.66%	11.88%	13.36%	13.46%	12.89%	12.15%	11.76%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,070,000K ÷ $10,111,000K
= -10.58%

Illumina Inc's operating return on assets (operating ROA) has experienced fluctuations over the past eight quarters. In Q4 2023, the operating ROA was -2.20%, representing a decline from the previous quarter's -1.78%. This negative trend indicates that the company's operating income generated from its assets decreased relative to the asset base.

Looking further back, the operating ROA in Q4 2022 was 2.89%, followed by 4.46% in Q3 2022, signifying a significant decline in operating efficiency from a year ago. The abrupt drop in operating ROA from historical levels suggests potential challenges in managing costs or utilizing assets effectively to generate income.

The Q2 2023 and Q1 2023 results of 0.00% and 0.90%, respectively, show a period of stabilization or slight improvement in operating efficiency. However, these levels are still relatively low compared to previous quarters where the operating ROA was in positive territory.

Overall, the varying performance of Illumina Inc's operating ROA over the past eight quarters indicates fluctuations in the company's ability to generate operating income relative to its asset base. Further evaluation of the underlying factors contributing to these fluctuations may be necessary to understand the company's operational effectiveness and financial performance.