Illumina Inc (ILMN)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -1,178,000 | -1,532,000 | -3,034,000 | -1,147,000 | -1,116,000 | -1,117,000 | -4,007,000 | -4,555,000 | -4,337,000 | -4,082,000 | 10,000 | 854,000 | 883,000 | 1,095,000 | 890,000 | 848,000 | 857,000 | 827,000 | 882,000 | 1,066,000 |
| Revenue (ttm) | US$ in thousands | 4,372,000 | 4,390,000 | 4,429,000 | 4,493,000 | 4,504,000 | 4,465,000 | 4,461,000 | 4,447,000 | 4,583,000 | 4,699,000 | 4,692,000 | 4,656,000 | 4,526,000 | 4,280,000 | 3,966,000 | 3,473,000 | 3,239,000 | 3,238,000 | 3,351,000 | 3,556,000 |
| Pretax margin | -26.94% | -34.90% | -68.50% | -25.53% | -24.78% | -25.02% | -89.82% | -102.43% | -94.63% | -86.87% | 0.21% | 18.34% | 19.51% | 25.58% | 22.44% | 24.42% | 26.46% | 25.54% | 26.32% | 29.98% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,178,000K ÷ $4,372,000K
= -26.94%
The pretax margin of Illumina Inc has shown fluctuations over the period from March 31, 2020 to December 31, 2024. The trend indicates a gradual decline in the pretax margin percentage from around 30% in March 2020 to approximately -27% by December 2024.
The company experienced a gradual decrease in profitability, with a significant drop in pretax margin in the later years of the period under review. The pretax margin turned negative in June 2022 and remained in negative territory until the end of December 2024.
The negative pretax margins in the later years suggest that Illumina Inc may have faced challenges in generating profits before accounting for taxes, signaling potential issues with cost management, revenue generation, or efficiency in operations. Companies with negative pretax margins face increased financial risk and may struggle to cover their operating expenses and debt obligations.
Overall, the declining trend in Illumina Inc's pretax margin over the period raises concerns about the company's financial performance and its ability to maintain profitability in the long run. It may require strategic measures to improve operational efficiency and profitability to ensure sustainable growth and financial stability.
Peer comparison
Dec 31, 2024