Analysis of Debt
Total Debt (Carrying Amount)
Illumina Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
The total debt carrying amount exhibited significant volatility over the five-year period from 2016 to 2020. While debt levels remained relatively stable between 2016 and 2017, a substantial increase occurred in 2018, followed by a sharp reduction in 2019 and subsequent stabilization through 2020.
- Total Debt Trajectory
- Total debt rose from 1,272 million US$ in 2016 to a peak of 1,997 million US$ in 2018. This represents a peak increase of approximately 56% over two years. However, by 2019, the total debt carrying amount fell to 1,141 million US$, remaining relatively flat at 1,184 million US$ by the end of 2020.
- Debt Maturity Profile
- A notable shift in the current portion of long-term debt is observed. This figure remained negligible in 2016 and 2017 but surged to 1,107 million US$ in 2018, indicating a significant concentration of debt maturing within a one-year window. By 2020, this current portion was 511 million US$, suggesting a continued but reduced short-term repayment obligation compared to the 2018 peak.
- Long-Term Obligations
- Long-term debt excluding the current portion fluctuated throughout the period. After an increase to 1,182 million US$ in 2017, it declined to 890 million US$ in 2018, rebounded to 1,141 million US$ in 2019, and eventually decreased to its lowest level in the period at 673 million US$ in 2020.
- Lease Liability Trends
- Build-to-suit lease liabilities were present in the early years of the analysis, decreasing from 223 million US$ in 2016 to 144 million US$ in 2017. These liabilities were not reported in the subsequent three years of the analyzed period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Debt (Fair Value)
| Dec 31, 2020 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Build-to-suit lease liability | —) |
| Convertible senior notes outstanding | 1,595) |
| Obligations under financing leases | —) |
| Other | —) |
| Total debt (fair value) | 1,595) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.35 |
Based on: 10-K (reporting date: 2020-12-31).
Weighted-average Interest Rate on Debt
Weighted-average estimated implied interest rate on Convertible Senior Notes: 3.62%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.70% | 750) | 28) | |
| 3.50% | 517) | 18) | |
| Total | 1,267) | 46) | |
| 3.62% | |||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 46 ÷ 1,267 = 3.62%