Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Illumina Inc. (NASDAQ:ILMN)

Financial Reporting Quality: Aggregate Accruals

Advanced level

Balance-Sheet-Based Accruals Ratio

Illumina Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Operating Assets
Total assets 7,316  6,959  5,257  4,281  3,688 
Less: Cash and cash equivalents 2,042  1,144  1,225  735  769 
Less: Short-term investments 1,372  2,368  920  824  617 
Operating assets 3,902  3,447  3,112  2,722  2,302 
Operating Liabilities
Total liabilities 2,703  3,053  2,288  1,966  1,807 
Less: Build-to-suit lease liability —  —  144  223 
Less: Long-term debt, current portion —  1,107  10  75 
Less: Long-term debt, excluding current portion 1,141  890  1,182  1,048  1,016 
Operating liabilities 1,562  1,056  952  695  707 
 
Net operating assets1 2,340  2,391  2,160  2,027  1,595 
Balance-sheet-based aggregate accruals2 (51) 231  133  432 
Financial Ratio
Balance-sheet-based accruals ratio3 -2.16% 10.15% 6.34% 23.87%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.97% -6.71% 69.42% -1.06%
AbbVie Inc. -24.37% -31.42% -7.02% 25.20%
Amgen Inc. 56.66% -9.88% -33.04% -6.85%
Biogen Inc. -4.05% 3.85% 7.67% 9.75%
Bristol-Myers Squibb Co. 147.33% -3.17% -24.97% -0.82%
Eli Lilly & Co. -0.10% -10.27% -5.99% 1.26%
Gilead Sciences Inc. 19.80% -41.29% -16.94% 23.56%
Johnson & Johnson -3.85% -8.03% 31.51% 5.55%
Merck & Co. Inc. -2.90% -15.70% -0.65% -12.97%
Pfizer Inc. 19.85% -9.34% 12.36% 4.12%
Regeneron Pharmaceuticals Inc. 25.36% 20.14% 33.15% 26.37%
Vertex Pharmaceuticals Inc. 42.22% 110.08% -29.69% -17.29%
Zoetis Inc. 4.03% 29.08% -1.25% 8.66%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 23.89% -10.89% 10.16% 4.19%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 15.82% -0.81% 9.00% 4.66%

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 3,9021,562 = 2,340

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 2,3402,391 = -51

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -51 ÷ [(2,340 + 2,391) ÷ 2] = -2.16%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Illumina Inc. improved earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Illumina Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Net income attributable to Illumina stockholders 1,002  826  726  463  462 
Less: Net cash provided by operating activities 1,051  1,142  875  687  660 
Less: Net cash (used in) provided by investing activities 745  (1,813) (214) (515) (106)
Cash-flow-statement-based aggregate accruals (794) 1,497  65  290  (92)
Financial Ratio
Cash-flow-statement-based accruals ratio1 -33.57% 65.79% 3.10% 16.01%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -1.39% -5.39% 12.34% -6.46%
AbbVie Inc. -28.46% -23.85% -12.92% 16.02%
Amgen Inc. -29.37% -95.70% -22.85% 22.06%
Biogen Inc. -10.98% 1.91% 6.65% 12.70%
Bristol-Myers Squibb Co. 10.75% -1.14% -28.29% 0.76%
Eli Lilly & Co. 74.20% -25.54% -11.43% 5.63%
Gilead Sciences Inc. 19.49% -73.15% 28.23% 29.15%
Johnson & Johnson -3.04% -5.08% -7.40% 4.68%
Merck & Co. Inc. -2.28% -19.26% -13.29% -5.97%
Pfizer Inc. 7.93% -10.12% 10.69% -1.06%
Regeneron Pharmaceuticals Inc. 22.48% 28.32% 19.22% 13.64%
Vertex Pharmaceuticals Inc. 35.87% 86.04% -22.78% -57.04%
Zoetis Inc. 2.95% 31.33% -4.07% 6.41%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 2.86% -16.39% -0.76% 5.55%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 3.84% -5.92% 1.00% 5.98%

Based on: 10-K (filing date: 2020-02-11), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-03-02).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -794 ÷ [(2,340 + 2,391) ÷ 2] = -33.57%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Illumina Inc. improved earnings quality from 2018 to 2019.