Illumina Inc (ILMN)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -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 | 1,130,000 | 1,083,000 | 1,056,000 | 948,000 |
| Revenue (ttm) | US$ in thousands | 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 | 3,543,000 | 3,458,000 | 3,404,000 | 3,396,000 |
| Pretax margin | -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% | 31.89% | 31.32% | 31.02% | 27.92% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-1,116,000K ÷ $4,504,000K
= -24.78%
Illumina Inc's pretax margin has shown significant fluctuations over the past eight quarters based on the data provided. The pretax margin was negative in all quarters, ranging from -102.38% in Q1 2023 to -24.80% in Q4 2023. These negative margins indicate that Illumina's operating expenses, including research and development, sales and marketing, and general administrative costs, have exceeded its gross profit before accounting for taxes.
It is noteworthy that the company reported positive pretax margins in Q2 2022 (0.23%) and Q1 2022 (18.36%), suggesting that Illumina was able to generate profits before tax during those quarters. However, the subsequent quarters reflect a significant decline in profitability, with margins dropping below zero.
Overall, the trend of negative pretax margins in recent quarters raises concerns about Illumina's ability to control costs and generate sustainable profits. Further analysis of the company's cost structure, revenue streams, and operational efficiency is warranted to understand the reasons behind these fluctuations and to assess the company's financial health and future prospects.
Peer comparison
Dec 31, 2023