Illumina Inc (ILMN)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.39 | 0.48 | 0.51 | 0.21 | 0.21 | 0.20 | 0.19 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.13 | 0.12 | 0.13 | 0.12 |
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
The debt-to-capital ratio of Illumina Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio was relatively stable at around 0.12-0.13 from March 2020 to December 2021. Thereafter, the ratio decreased significantly to 0.00 in the first quarter of 2022, and remained at this level until the third quarter of 2023.
However, starting from the last quarter of 2023, the debt-to-capital ratio increased steadily, reaching 0.51 in the second quarter of 2024. This significant increase suggests a higher reliance on debt financing in relation to the company's total capital structure during this period. By the end of December 2024, the debt-to-capital ratio moderated to 0.39, but it remained higher compared to the earlier periods in the timeframe analyzed.
The rising trend in the debt-to-capital ratio from late 2023 to mid-2024 may indicate that Illumina Inc has been taking on more debt to finance its operations and growth initiatives, which could potentially increase financial risk and interest obligations. It is essential for investors and stakeholders to closely monitor the company's debt levels and evaluate the impact on its overall financial health and stability.
Peer comparison
Dec 31, 2024