Illumina Inc (ILMN)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,111,000 | 10,122,000 | 11,774,000 | 11,811,000 | 12,252,000 | 11,256,000 | 15,448,000 | 15,274,000 | 15,217,000 | 15,063,000 | 8,675,000 | 8,755,000 | 7,585,000 | 7,404,000 | 7,248,000 | 7,261,000 | 7,316,000 | 7,089,000 | 6,973,000 | 7,390,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 4,613,000 | 4,439,000 | 4,332,000 | 3,985,000 |
| Financial leverage ratio | 1.76 | 1.72 | 1.80 | 1.76 | 1.86 | 1.67 | 1.48 | 1.40 | 1.42 | 1.42 | 1.67 | 1.78 | 1.62 | 1.58 | 1.59 | 1.57 | 1.59 | 1.60 | 1.61 | 1.85 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,111,000K ÷ $5,745,000K
= 1.76
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, which can amplify returns but also increase financial risk.
Looking at the financial leverage ratio trend for Illumina Inc over the past eight quarters, we observe fluctuations in the ratio. In Q1 2022, the ratio was 1.40, indicating a relatively lower level of leverage. However, the ratio steadily increased in subsequent quarters, reaching a peak of 1.86 in Q4 2022 before declining to 1.72 in Q3 2023.
The ratio then slightly increased to 1.76 in Q4 2023, indicating that Illumina's reliance on debt for financing has remained relatively stable compared to the previous quarter. Overall, the company's financial leverage ratio has fluctuated within the range of 1.40 to 1.86 over the past eight quarters.
This suggests that Illumina Inc has been managing its debt levels prudently, though it's important for investors and stakeholders to closely monitor changes in the ratio to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2023