Illumina Inc (ILMN)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | -812,000 | -1,136,000 | -2,640,000 | -1,073,000 | -1,040,000 | -1,050,000 | -3,953,000 | -4,514,000 | -4,310,000 | -4,051,000 | 49,000 | 903,000 | 945,000 | 1,160,000 | 952,000 | 905,000 | 906,000 | 871,000 | 926,000 | 1,114,000 |
| Long-term debt | US$ in thousands | 1,490,000 | 1,988,000 | 1,490,000 | 1,490,000 | 1,489,000 | 1,489,000 | 1,488,000 | — | 1,487,000 | — | — | — | 1,695,000 | — | — | — | 673,000 | 666,000 | 659,000 | 652,000 |
| Total stockholders’ equity | US$ in thousands | 2,373,000 | 2,125,000 | 1,436,000 | 5,734,000 | 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 |
| Return on total capital | -21.02% | -27.62% | -90.23% | -14.85% | -14.38% | -14.21% | -49.15% | -67.44% | -53.30% | -60.18% | 0.47% | 8.29% | 7.60% | 10.95% | 18.38% | 18.39% | 16.88% | 16.23% | 17.73% | 21.07% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-812,000K ÷ ($1,490,000K + $2,373,000K)
= -21.02%
The return on total capital for Illumina Inc has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The ratio started at a relatively high level of 21.07% in March 2020 but has decreased significantly to -21.02% by December 2024.
During the initial period, the return on total capital remained above 16%, indicating efficient utilization of capital to generate profits. However, from September 2021 onwards, there was a sharp decline in the ratio, eventually reaching negative values in the later periods.
The negative trend suggests that Illumina Inc may be facing challenges in generating sufficient returns on the total capital employed. This could be due to various factors such as decreasing profitability, inefficient capital allocation, or poor performance relative to the amount of capital invested.
It would be prudent for stakeholders of Illumina Inc to closely monitor the return on total capital and assess the underlying reasons for the negative trend to address any potential issues impacting the company's financial performance and long-term sustainability.
Peer comparison
Dec 31, 2024