Illumina Inc. (NASDAQ:ILMN)

The analysis of the financial data reveals several key trends in the company's profitability, equity growth, and return on equity (ROE) over the examined period.

Net Income (Loss) Attributable to Illumina Stockholders (US$ in millions)

The net income figures show considerable variability in the early years, starting with a loss of 21 million USD in 2006, followed by a net gain of 40 million USD in the same year. There was a significant loss of 278 million USD in 2007, after which the company returned to profitability from 2008 onward. From 2008 to 2014, net income experienced a general upward trajectory with some fluctuations, peaking at 353 million USD in 2014. A remarkable increase is observed post-2014, reaching a high of 1,002 million USD in 2019. However, the net income declined to 656 million USD in 2020, indicating some volatility or potential impacts on earnings in the latest period.

Illumina Stockholders’ Equity (US$ in millions)

The stockholders’ equity exhibits a consistent growth trend throughout the period. Beginning at 72 million USD in 2006, equity steadily expanded to 849 million USD by 2008. This growth continued over the following years, surpassing 1 billion USD by 2012, and reaching 1.5 billion USD by 2013. After a slight dip in 2014, equity resumed its upward trend, achieving 4.6 billion USD in 2020. This persistent increase suggests ongoing reinvestment, capital raising, or accumulation of retained earnings contributing to the company’s robust financial foundation.

Return on Equity (ROE, %)

The ROE started with a negative value of -28.79% in 2006, which aligns with the net loss reported that year. It improved significantly in the subsequent years, fluctuating but generally remaining positive. Notable dips occurred in 2007 (-67.62%) and 2008 (5.95%), reflecting the income volatility observed in those years. From around 2010 onwards, ROE stabilized in a range between approximately 8% and 27%, peaking around 26.41% in 2017. Despite some decline, ROE remained relatively strong through 2020, ending at nearly 14%. This pattern suggests that the company managed to generate consistent returns on equity after overcoming early profitability challenges.

In summary, the company faced early profitability difficulties but demonstrated a marked recovery and growth in net income and equity over the studied timeframe. Its ability to maintain a solid return on equity in later years reflects improving operational efficiency and financial strength. The dip in net income in 2020 amidst continued equity growth and a moderate ROE may warrant further investigation to understand underlying factors impacting recent performance.