Illumina Inc (ILMN)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-1,223,000	-1,161,000	-4,404,000	762,000	656,000
Total assets	US$ in thousands	6,303,000	10,111,000	12,252,000	15,217,000	7,585,000
ROA		-19.40%	-11.48%	-35.95%	5.01%	8.65%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-1,223,000K ÷ $6,303,000K
= -19.40%

Based on the data provided for Illumina Inc's return on assets (ROA) over the years, there has been a fluctuation in the company's efficiency in generating profits from its assets.

- As of December 31, 2020, Illumina's ROA stood at a relatively healthy 8.65%, indicating that the company was able to generate a return of $0.0865 for every dollar of assets it owned.
- However, by December 31, 2021, the ROA decreased to 5.01%, suggesting a decline in profitability compared to the previous year.
- The year 2022 witnessed a significant downturn in Illumina's financial performance, with an ROA of -35.95%, indicating that the company incurred losses equivalent to 35.95% of its assets.
- The trend continued in 2023, as the ROA further declined to -11.48%, reflecting a continued struggle in generating profits from its assets.
- By December 31, 2024, Illumina's ROA decreased even further to -19.40%, signifying ongoing challenges in the company's asset utilization and profitability.

Overall, the fluctuating ROA figures suggest that Illumina Inc faced profitability issues and challenges in efficiently utilizing its assets effectively over the years. The negative ROA values in particular indicate that the company's assets were not generating sufficient returns to cover expenses or were incurring losses.