Illumina Inc (ILMN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,373,000 | 5,745,000 | 6,599,000 | 10,740,000 | 4,694,000 |
| Debt-to-capital ratio | 0.39 | 0.21 | 0.18 | 0.14 | 0.13 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,490,000K ÷ ($1,490,000K + $2,373,000K)
= 0.39
Illumina Inc's debt-to-capital ratio has shown a gradual increase over the years, from 0.13 as of December 31, 2020, to 0.39 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations and investments has also increased during this period. A higher debt-to-capital ratio suggests a higher level of financial risk due to the proportion of debt in its capital structure. It is important for investors and stakeholders to monitor this trend closely, as a significant increase in the ratio may indicate potential liquidity issues or financial distress for the company in the future.
Peer comparison
Dec 31, 2024