Illumina Inc (ILMN)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,490,000 | 1,489,000 | 1,487,000 | 1,695,000 | 673,000 |
| Total assets | US$ in thousands | 6,303,000 | 10,111,000 | 12,252,000 | 15,217,000 | 7,585,000 |
| Debt-to-assets ratio | 0.24 | 0.15 | 0.12 | 0.11 | 0.09 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,490,000K ÷ $6,303,000K
= 0.24
Based on the provided data, Illumina Inc's debt-to-assets ratio has been showing a gradual increase over the past five years. Starting at 0.09 in December 31, 2020, the ratio has risen to 0.11 in December 31, 2021, then to 0.12 in December 31, 2022, further increasing to 0.15 in December 31, 2023, and finally reaching 0.24 by December 31, 2024.
The increase in the debt-to-assets ratio may indicate that Illumina Inc has been taking on more debt relative to its total assets over the years. A higher debt-to-assets ratio suggests that the company is financing a larger portion of its assets through debt, which may increase financial risk and dependency on creditors.
It is essential for investors and stakeholders to monitor this trend closely, as a continually rising debt-to-assets ratio could potentially signal financial instability or liquidity challenges for Illumina Inc in the future. Further analysis of the company's overall financial health and debt management strategies would be advisable to gain a more comprehensive understanding of the implications of the increasing debt-to-assets ratio.
Peer comparison
Dec 31, 2024