Illumina Inc (ILMN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,373,000	5,745,000	6,599,000	10,740,000	4,694,000
ROE		-51.54%	-20.21%	-66.74%	7.09%	13.98%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-1,223,000K ÷ $2,373,000K
= -51.54%

Illumina Inc's return on equity (ROE) has shown a fluctuating trend over the years based on the provided data.

In December 2020, the ROE was at a respectable 13.98%, indicating that the company was generating a decent return on the shareholders' equity. However, there was a significant decline in ROE by December 2021, dropping to 7.09%.

The most notable change occurred by December 2022 when the ROE plummeted to -66.74%, indicating that the company's net income was insufficient to cover the equity investment, resulting in a negative return. This suggests potential financial challenges or operational inefficiencies at that time.

Although there was a slight improvement by December 2023 with an ROE of -20.21%, the company still failed to generate positive returns for its shareholders. Furthermore, by December 2024, the ROE deteriorated further to -51.54%.

Overall, the declining trend in Illumina Inc's ROE over the years raises concerns about the company's ability to effectively utilize its equity to generate profits for its shareholders. Further investigation into the company's financial performance and operational strategies may be necessary to address these issues and improve ROE in the future.