Illumina Inc. (NASDAQ:ILMN)

Total inventory experienced a general upward trajectory over the five-year period from 2016 to 2020, increasing from US$ 300 million to US$ 372 million. While the growth peaked in 2018 at US$ 386 million, the subsequent years showed a slight fluctuation, with a dip in 2019 followed by a recovery in 2020.

Work in Process (WIP)

A consistent year-over-year increase is observed in work in process inventory, which grew from US$ 161 million in 2016 to US$ 244 million in 2020. This category represents the most significant growth driver and the largest portion of the total inventory balance throughout the analyzed period.

Raw Materials

Raw material levels remained relatively stable, fluctuating within a narrow range between US$ 93 million and US$ 117 million. No definitive long-term upward or downward trend is evident, suggesting a consistent procurement strategy relative to production needs.

Finished Goods

A distinct downward trend in finished goods is observed after 2017. After peaking at US$ 52 million in 2017, the balance declined to US$ 22 million by 2020. This represents a reduction of approximately 57% from the peak, indicating a potential acceleration in the movement of completed products out of inventory.

The composition of the inventory shifted toward a higher concentration of work in process. The divergence between the steady rise in WIP and the decline in finished goods suggests a production environment characterized by increased ongoing manufacturing activity and higher efficiency in the transition from completed goods to final delivery.