Illumina Inc. (NASDAQ:ILMN)

The financial data reveals notable shifts in the asset composition over multiple quarters.

Cash and cash equivalents

There is significant volatility in this category, with a general upward trend reaching a peak of 50.63% of total assets in April 2021, followed by a sharp decline to 7.17% in the subsequent quarter. This suggests strategic liquidity management or changes in cash holdings influenced by operational or investment activities.

Short-term investments

Short-term investments display fluctuations, initially varying between approximately 11% and 34%, peaking near the end of 2018. Thereafter, the percentage declines steadily to around 1% by October 2021, indicating a possible reallocation away from short-term investments towards other assets or cash.

Accounts receivable, net

Accounts receivable exhibit a gradual decline from above 10% in early 2016 to around 4% by late 2021. This trend may indicate improved collections, shifts in sales mix, or changes in credit policies.

Inventory

The inventory proportion tends to decrease over the periods, dropping from 7.59% in early 2016 to 2.66% by late 2021. This consistent decline could reflect more efficient inventory management or reduced reliance on physical stocks.

Prepaid expenses and other current assets

This category remains relatively stable with slight fluctuations mostly between 1% and 2%. The steadiness suggests consistent operational spending and asset recognition practices over time.

Current assets

The total current assets percentage generally holds steady around the mid-50s to low 60s before sharply dropping to 16.27% in October 2021. This drastic decline corresponds with changes observed in cash and short-term investments, signaling a major restructuring in asset allocation.

Property and equipment, net

This asset class grows from approximately 10% to peaks near 17.7% by late 2017, then gradually decreases to 6.7% by October 2021. The initial rise indicates capital expenditure expansions, while the subsequent decline may reflect asset disposals, depreciation, or shifts towards intangible or other asset forms.

Operating lease right-of-use assets

Introduced in 2018, this category remains relatively stable with minor decreases from 7.77% to 4.49% by late 2021, reflecting lease accounting standards adoption and modest reduction in leased asset utilization.

Goodwill

Goodwill consistently declines over the period from about 20.46% down to 10.25%, before a notable increase to 47.12% in October 2021. This may indicate impairment charges or disposals prior to the last date, followed by a significant acquisition or revaluation.

Intangible assets, net

Intangible assets steadily decrease from 7.11% to 1.53%, then jump to 22.25% at the final period, mirroring the pattern seen in goodwill and suggesting a similar effect due to acquisitions or reclassification.

Other assets

This category remains within a range of approximately 5% to 8%, with a slight increase towards later quarters, implying consistent recognition of miscellaneous asset components.

Long-term assets

Long-term assets show a subtle downward trend from around 45% to 35%, culminating with a sharp rise to 83.73% in October 2021, consistent with earlier observations of goodwill and intangible asset surges suggesting a significant reallocation or acquisition impacting the asset structure.

Total assets

By definition, total assets are maintained at 100% across all periods, serving as the baseline for all proportional comparisons.

In summary, the asset structure exhibits two distinct phases: a generally stable to gradually changing composition followed by a marked transformation in 2021 characterized by decreases in liquid and tangible current assets and simultaneous sharp increases in goodwill, intangible assets, and long-term asset proportions. These shifts likely reflect strategic acquisitions, changes in capital structure, or accounting reclassifications affecting the asset portfolio significantly.