Illumina Inc (ILMN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,179,000 | -1,117,000 | -4,336,000 | 884,000 | 856,000 |
| Revenue | US$ in thousands | 4,372,000 | 4,504,000 | 4,584,000 | 4,526,000 | 3,239,000 |
| Pretax margin | -26.97% | -24.80% | -94.59% | 19.53% | 26.43% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-1,179,000K ÷ $4,372,000K
= -26.97%
Illumina Inc's pretax margin has shown significant fluctuations over the years. The pretax margin was favorable at 26.43% as of December 31, 2020, indicating strong profitability before accounting for taxes. However, there was a notable decline in pretax margin to 19.53% as of December 31, 2021, suggesting a decrease in profitability.
The most recent data points show a concerning trend, with pretax margins turning negative from December 31, 2022 onwards. The pretax margin was -94.59% as of December 31, 2022, indicating substantial losses before tax considerations. This negative trend persisted, with pretax margins of -24.80% on December 31, 2023, and -26.97% on December 31, 2024.
The negative pretax margins in the latter years raise red flags regarding Illumina Inc's financial performance and operational efficiency. Further analysis is necessary to understand the factors contributing to this significant decline in profitability and to identify potential areas for improvement within the company.
Peer comparison
Dec 31, 2024