Illumina Inc (ILMN)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	6,303,000	10,111,000	12,252,000	15,217,000	7,585,000
Total stockholders’ equity	US$ in thousands	2,373,000	5,745,000	6,599,000	10,740,000	4,694,000
Financial leverage ratio		2.66	1.76	1.86	1.42	1.62

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,303,000K ÷ $2,373,000K
= 2.66

The financial leverage ratio is a measure of a company's debt levels in relation to its equity. Illumina Inc's financial leverage ratio has shown fluctuations over the five-year period.

As of December 31, 2020, the financial leverage ratio was 1.62, indicating that the company had more debt relative to equity. This ratio decreased to 1.42 by December 31, 2021, suggesting a decrease in the company's reliance on debt financing.

However, by December 31, 2022, the financial leverage ratio increased to 1.86, indicating a higher level of debt compared to equity. This trend continued in 2023 with a ratio of 1.76, although it was slightly lower compared to the previous year.

Notably, by December 31, 2024, the financial leverage ratio spiked to 2.66, signaling a significant increase in debt relative to equity. This substantial jump could potentially raise concerns about the company's financial stability and ability to manage its debt obligations effectively.

Overall, the varying levels of Illumina Inc's financial leverage ratio over the years demonstrate fluctuations in the company's debt structure and highlight the importance of monitoring and managing debt levels effectively to maintain a healthy financial position.