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.

Return on Capital (ROC)

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Return on Invested Capital (ROIC)

Illumina Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 593 957 775 739 453
Invested capital2 4,907 4,997 3,989 3,596 2,874
Performance Ratio
ROIC3 12.08% 19.15% 19.42% 20.55% 15.77%
Benchmarks
ROIC, Competitors4
AbbVie Inc. 4.30% 14.74%
Amgen Inc. 20.35% 22.74%
Bristol-Myers Squibb Co. -7.57% 3.06%
Eli Lilly & Co. 25.89% 22.93%
Gilead Sciences Inc. 1.26% 12.92%
Johnson & Johnson 13.91% 12.94%
Merck & Co. Inc. 11.66% 18.52%
Pfizer Inc. 5.87% 14.19%
Regeneron Pharmaceuticals Inc. 44.66% 34.05%
Thermo Fisher Scientific Inc. 10.70% 6.69%
Vertex Pharmaceuticals Inc. 37.13% 27.57%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 593 ÷ 4,907 = 12.08%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Illumina Inc. ROIC deteriorated from 2018 to 2019 and from 2019 to 2020.

Decomposition of ROIC

Illumina Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2020 12.08% = 19.37% × 0.66 × 94.45%
Dec 29, 2019 19.15% = 30.23% × 0.71 × 89.34%
Dec 30, 2018 19.42% = 27.22% × 0.84 × 85.39%
Dec 31, 2017 20.55% = 39.36% × 0.77 × 68.24%
Dec 31, 2016 15.77% = 24.75% × 0.83 × 76.35%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Illumina Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 593 957 775 739 453
Add: Cash operating taxes2 35 114 133 344 140
Net operating profit before taxes (NOPBT) 627 1,071 907 1,083 594
 
Revenue 3,239 3,543 3,333 2,752 2,398
Profitability Ratio
OPM3 19.37% 30.23% 27.22% 39.36% 24.75%
Benchmarks
OPM, Competitors4
AbbVie Inc. 13.19% 30.02%
Amgen Inc. 38.71% 46.69%
Bristol-Myers Squibb Co. -12.65% 21.63%
Eli Lilly & Co. 30.98% 24.91%
Gilead Sciences Inc. 10.83% 27.94%
Johnson & Johnson 20.16% 21.00%
Merck & Co. Inc. 19.13% 26.21%
Pfizer Inc. 19.53% 35.42%
Regeneron Pharmaceuticals Inc. 46.15% 33.80%
Thermo Fisher Scientific Inc. 24.12% 17.61%
Vertex Pharmaceuticals Inc. 50.94% 33.47%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 627 ÷ 3,239 = 19.37%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Illumina Inc. OPM improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Turnover of Capital (TO)

Illumina Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Revenue 3,239 3,543 3,333 2,752 2,398
Invested capital1 4,907 4,997 3,989 3,596 2,874
Efficiency Ratio
TO2 0.66 0.71 0.84 0.77 0.83
Benchmarks
TO, Competitors3
AbbVie Inc. 0.44 0.53
Amgen Inc. 0.63 0.59
Bristol-Myers Squibb Co. 0.47 0.26
Eli Lilly & Co. 1.00 1.04
Gilead Sciences Inc. 0.48 0.70
Johnson & Johnson 0.84 0.85
Merck & Co. Inc. 0.84 0.87
Pfizer Inc. 0.40 0.43
Regeneron Pharmaceuticals Inc. 1.03 1.20
Thermo Fisher Scientific Inc. 0.53 0.49
Vertex Pharmaceuticals Inc. 0.76 0.85

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 Invested capital. See details »

2 2020 Calculation
TO = Revenue ÷ Invested capital
= 3,239 ÷ 4,907 = 0.66

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Illumina Inc. TO deteriorated from 2018 to 2019 and from 2019 to 2020.

Effective Cash Tax Rate (CTR)

Illumina Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 593 957 775 739 453
Add: Cash operating taxes2 35 114 133 344 140
Net operating profit before taxes (NOPBT) 627 1,071 907 1,083 594
Tax Rate
CTR3 5.55% 10.66% 14.61% 31.76% 23.65%
Benchmarks
CTR, Competitors4
AbbVie Inc. 26.24% 7.42%
Amgen Inc. 15.91% 17.97%
Bristol-Myers Squibb Co. 45.70%
Eli Lilly & Co. 16.37% 11.34%
Gilead Sciences Inc. 76.01% 34.29%
Johnson & Johnson 17.72% 27.17%
Merck & Co. Inc. 27.35% 19.04%
Pfizer Inc. 25.53% 6.34%
Regeneron Pharmaceuticals Inc. 5.72% 16.36%
Thermo Fisher Scientific Inc. 15.79% 21.66%
Vertex Pharmaceuticals Inc. 4.34% 3.62%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 35 ÷ 627 = 5.55%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Illumina Inc. CTR decreased from 2018 to 2019 and from 2019 to 2020.