Stock Analysis on Net

Illumina Inc. (NASDAQ:ILMN)

This company has been moved to the archive! The financial data has not been updated since November 5, 2021.

Cash Flow Statement 
Quarterly Data

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Illumina Inc., consolidated cash flow statement (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Oct 3, 2021 Jul 4, 2021 Apr 4, 2021 Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Consolidated net income 317 186 147 257 179 47 173 239 234 293 224 197 188 200 197 57 153 120 348 108 117 116 87
Depreciation expense 46 41 41 42 39 38 37 38 37 39 37 40 35 35 30 29 29 26 26 25 23 22 21
Amortization of intangible assets 19 8 7 8 8 8 7 7 10 10 10 10 10 10 9 10 12 12 12 13 13 13 13
Share-based compensation expense 509 80 67 78 61 16 39 49 46 48 51 47 48 50 48 41 34 39 50 27 35 32 35
Accretion of debt discount on convertible senior notes 7 9 10 11 10 9 10 10 9 13 14 15 10 8 8 7 8 8 7 7 7 7 8
Incremental tax benefit related to share-based compensation 19 (26) (25) (59)
Deferred income taxes 75 (77) (79) 67 3 76 (29) 24 (19) 17 (11) 14 (10) (11) (11) 28 (13) (20) 86 36 30 34 (6)
Gain on previously held investment in GRAIL (900)
(Gains) losses on equity securities, net (41) (28) 72 (142) (59) (66) (3) 4 47 (102) (2) (21)
Gain on Helix contingent value right (30)
Payment of accreted debt discount (84)
Gain on deconsolidation (39) (15) (453)
(Gain) loss on derivative assets related to terminated acquisition (26) 9 12 95 8
Change in fair value of contingent consideration (7)
Impairment of intangible assets 23
Other (6) 2 (19) (19) (2) (10) (2) 9 (5) (2) (3) 4 6 (6) 3 3 (3) (2) (3) 2 4 (1)
Accounts receivable (64) (22) (39) (19) (82) 91 99 (29) (75) (10) 56 (81) (36) 1 11 (27) (13) (2) 16 (2) (8) 26 (13)
Inventory (18) (17) 8 44 19 (51) (24) 58 3 (10) (26) (13) (12) (11) (17) (6) (18) (10) 1 12 (1) (23) (17)
Prepaid expenses and other current assets (40) (1) 7 (5) (18) 17 (14) (3) (17) 6 (2) 6 3 (2) (6) 9 3 2 (5) (2) 8 (3)
Operating lease right-of-use assets and liabilities, net (4) (2) (3) (2) (2) (6) (1) (2) (2) (1)
Other assets (28) (3) (4) (8) (2) (12) (11) (1) (18) (3) (8) (4) (4) (1) (2) (2) (1) (1) (3) (2)
Accounts payable (40) 20 (8) 42 11 3 (16) 11 (3) 4 (47) 32 12 (1) 2 (2) 12 3 (3) 5 (15) 5 3
Accrued liabilities (81) 57 105 61 (27) 62 (103) 37 6 (17) (70) 58 28 35 (18) 25 15 (11) 52 33 (26) (1) (30)
Other long-term liabilities 14 (4) (9) 6 6 24 (19) (2) 5 (17) 11 (20) 5 137 4 15 4 6 2 4 4
Changes in operating assets and liabilities (261) 32 62 104 (95) 110 (46) 55 (92) (50) (107) (6) 5 3 (20) 119 9 (4) 71 49 (50) 14 (57)
Adjustments to reconcile net income to net cash provided by operating activities (589) 67 135 149 (26) 193 108 204 33 (150) (26) 103 104 95 58 237 82 58 (180) 173 33 101 (47)
Net cash provided by operating activities (272) 253 282 406 153 240 281 443 267 143 198 300 292 295 255 294 235 178 168 280 150 217 40
Maturities of available-for-sale securities 331 166 109 111 107 125 58 173 1,031 150 154 141 415 140 85 48 48 (9) 36 36 76
Purchases of available-for-sale securities (77) (1,045) (210) (291) (256) (250) (367) (276) (117) (507) (1,215) (539) (598) (383) (273) (25) (61) (215) (377) (218) (85)
Sales of available-for-sale securities 1,031 919 92 101 186 101 142 268 118 77 188 44 288 8 175 99 40 137 71 296 39
Proceeds from the deconsolidation of GRAIL 15 278
Cash (paid for) received derivative assets related to terminated acquisition 52 (132) (18)
Purchases of property and equipment (52) (44) (42) (62) (48) (39) (40) (57) (49) (47) (56) (65) (64) (77) (90) (76) (82) (69) (83) (82) (57) (68) (53)
Deconsolidation of Helix cash (29) (52)
Purchases of strategic investments (32) (9) (3) (12) (5) (107) (5) (2) (10) (3) (3) (3) (6) (3) (4) (18) (7) (5) (3) (4) (3)
Sales of strategic investments 136 84
Net cash paid for acquisitions (2,364) (80) (3) (95) (100) (18)
Cash paid for intangible assets (2) (11)
Net cash (used in) provided by investing activities (2,448) 3 1,376 (34) (65) (320) (135) (104) (218) 79 988 (348) (940) (537) 12 (315) (97) 35 163 (173) (341) 44 (44)
Payments on financing obligations (549) (1) (1) (1) (2) (2) (1) (5) (1) 5 1 4 (76)
Net proceeds from issuance of debt 988 735 5 3 2
Payments on convertible senior notes (490) (27)
Incremental tax benefit related to share-based compensation (19) 26 25 59
Common stock repurchases (281) (125) (142) (188) (63) (198) (63) (98) (103) (75) (75) (101) (136) (13) (100)
Taxes paid related to net share settlement of equity awards (422) (6) (24) (50) (3) (3) (35) (52) (4) (3) (23) (56) (3) (2) (13) (40) (4) (2) (22) (23) (4) (3) (70)
Proceeds from issuance of common stock 28 31 27 2 32 29 3 27 1 23 1 21 8 32 9 22 1 21 4 23
Contributions from noncontrolling interest owners 31 61 43 20 16 9 80
Payments on acquisition-related contingent consideration liability (3) (29)
Proceeds from early exercise of equity awards from a subsidiary 1 1 5
Net cash provided by (used in) financing activities (394) (496) 968 (331) (101) (143) (191) (115) (173) (549) (60) (154) 651 30 67 (109) (5) 24 (86) (163) 34 (63) (12)
Effect of exchange rate changes on cash and cash equivalents (2) 3 (3) 8 4 2 (6) 3 (4) (1) (4) 1 1 2 1 1 (4) (1) 2
Net increase (decrease) in cash and cash equivalents (3,116) (237) 2,623 49 (9) (221) (51) 227 (128) (327) 1,126 (202) 2 (216) 335 (129) 135 238 246 (60) (157) 197 (14)

Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03).


Consolidated Net Income
Net income exhibits pronounced volatility over the observed periods, with notable peaks in early 2017 and late 2021. The highest net income recorded is in the quarter ending October 3, 2021 (US$317 million), while the lowest notable dip occurred in the quarter ending June 28, 2020 (US$47 million). The fluctuations indicate a variable profitability trend with no consistent upward or downward trajectory.
Depreciation and Amortization Expenses
Depreciation expense displays a gradual increase over time, from US$21 million in April 2016 to US$46 million in October 2021, suggesting ongoing capital asset investments and aging. Amortization of intangible assets remains relatively stable, fluctuating between US$7 million and US$13 million, with a few declines observed in late 2019 and 2020, potentially indicating changes in intangible assets.
Share-based Compensation Expense
Share-based compensation expense fluctuates significantly, with values generally ranging between US$27 million and US$80 million, except a substantial spike to US$509 million in October 2021. This outlier likely reflects a one-time or nonrecurring event associated with equity awards or restructuring of compensation plans.
Tax and Deferred Income Taxes
Deferred income taxes show varying positive and negative values without a clear pattern, indicative of periodic changes in tax positions. An incremental tax benefit related to share-based compensation is only present in early periods and absent thereafter, suggesting changes in accounting or tax treatment.
Gains and Losses
Reported gains and losses from equity securities, investments, and contingent rights reflect occasional one-time events, such as a significant gain from GRAIL in October 2021 (-US$900 million loss recorded) and a smaller gain from the Helix contingent value right in the same period. These do not follow a regular pattern and appear to be nonrecurring.
Working Capital Components
Accounts receivable show mixed fluctuations, with frequently negative and positive changes, reflecting variability in collections and sales. Inventory and prepaid expenses likewise exhibit irregular patterns, with occasional sharp increases or decreases that may correspond to operational changes. Accounts payable and accrued liabilities also vary significantly, with some quarters showing large negative or positive swings, suggesting variability in payment cycles and accrued expenses.
Operating Activities and Cash Flow
Net cash provided by operating activities remains largely positive, indicating consistent operational cash generation despite fluctuations. Adjustments to reconcile net income to cash from operations vary widely, consistent with income volatility and changes in working capital.
Investing Activities
Investing cash flows show large negative values in several quarters, notably related to purchases of available-for-sale securities and property and equipment, indicating ongoing investments. Periods of positive investing cash flow are associated with maturities and sales of securities. The net cash flows from investing activities are highly variable, reflecting active portfolio management and capital expenditures. There are notable substantial negative impacts in late 2021, possibly linked to acquisitions or strategic investments, considering the net cash paid for acquisitions also spikes in one quarter.
Financing Activities
Financing cash flows are inconsistent, with significant cash outflows related to stock repurchases, payments on financing obligations, and convertible note payments. Large inflows from debt issuance and common stock issuance offset these in certain periods. Repurchases of common stock show a general trend of high activity with multiple quarters of significant cash outflow, indicating ongoing capital return strategies.
Cash and Cash Equivalents
The net change in cash and cash equivalents over the periods is highly volatile, with large positive increases in some quarters, such as March 2019 and April 2021, and significant declines in others, including late 2021. These swings correspond with the operating, investing, and financing cash flow patterns previously noted, reflecting the combined effect of variable earnings, investment activities, and shareholder returns.
Overall Financial Trends
The financial data reveals a company with fluctuating earnings and significant variation in cash flow components across operating, investing, and financing activities. While operational cash generation generally remains positive, management shows active portfolio adjustments and capital expenditure, alongside aggressive stock repurchase programs. Occasional large, nonrecurring gains and losses related to strategic investments contribute to volatility in financial results. The overall pattern indicates dynamic financial management with periodic fluctuations driven by both operational volatility and strategic financial decisions.