Illumina Inc (ILMN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -1,160,000 | -1,124,000 | -4,186,000 | -4,487,000 | -4,404,000 | -4,152,000 | -19,000 | 701,000 | 762,000 | 906,000 | 768,000 | 630,000 | 656,000 | 638,000 | 693,000 | 942,000 | 1,002,000 | 973,000 | 938,000 | 851,000 |
| Total stockholders’ equity | US$ in thousands | 5,745,000 | 5,898,000 | 6,555,000 | 6,693,000 | 6,599,000 | 6,731,000 | 10,444,000 | 10,895,000 | 10,740,000 | 10,593,000 | 5,180,000 | 4,922,000 | 4,694,000 | 4,700,000 | 4,563,000 | 4,635,000 | 4,613,000 | 4,439,000 | 4,332,000 | 3,985,000 |
| ROE | -20.19% | -19.06% | -63.86% | -67.04% | -66.74% | -61.68% | -0.18% | 6.43% | 7.09% | 8.55% | 14.83% | 12.80% | 13.98% | 13.57% | 15.19% | 20.32% | 21.72% | 21.92% | 21.65% | 21.36% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-1,160,000K ÷ $5,745,000K
= -20.19%
Looking at Illumina Inc's return on equity (ROE) over the past eight quarters, we observe a declining trend in ROE performance. ROE dropped from a positive 6.43% in Q1 2022 to negative levels in subsequent quarters. Q2 2022 saw a marginal decrease to -0.18%, and this negative trend continued to worsen in the following quarters, reaching its lowest point at -67.04% in Q1 2023. The negative ROE trend persisted throughout 2023, with the lowest recorded ROE in Q2 2023 at -63.86% before slightly improving in the last two quarters but remaining in negative territory. This indicates that Illumina Inc's profitability relative to shareholders' equity has been deteriorating, which could raise concerns about the company's financial health and effectiveness in utilizing shareholder funds to generate returns. It would be advisable for stakeholders to closely monitor the company's financial performance and assess the factors contributing to the declining ROE to determine the necessary steps to improve profitability.
Peer comparison
Dec 31, 2023