Illumina Inc (ILMN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,117,000 | -4,336,000 | 884,000 | 856,000 | 1,130,000 |
| Revenue | US$ in thousands | 4,504,000 | 4,584,000 | 4,526,000 | 3,239,000 | 3,543,000 |
| Pretax margin | -24.80% | -94.59% | 19.53% | 26.43% | 31.89% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-1,117,000K ÷ $4,504,000K
= -24.80%
Illumina Inc's pretax margin has exhibited significant fluctuations over the past five years. The pretax margin was positive in three out of the five years analyzed, with the highest being 31.56% at the end of December 2019, indicating strong profitability before considering taxes. However, there was a notable decline in the pretax margin to 26.43% at the beginning of January 2021.
Subsequently, the pretax margin dropped sharply to 19.53% at the start of January 2022, reflecting a decrease in profitability. The trend reversed dramatically in the subsequent year, with a significant negative pretax margin of -94.59% as of January 2023, indicating a substantial loss before accounting for taxes.
The most recent data available shows a recovery from the previous year's negative performance, but the pretax margin remains in negative territory at -24.80% as of December 31, 2023. This negative pretax margin suggests that Illumina Inc continues to face challenges impacting its profitability. It is crucial for the company to closely monitor and address the factors contributing to these fluctuations in pretax margin to ensure sustainable financial performance.
Peer comparison
Dec 31, 2023