Stock Analysis on Net
Stock Analysis on Net
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Illumina Inc. (NASDAQ:ILMN)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Illumina Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Activity Ratio
Total Asset Turnover
Reported 0.48 0.48 0.52 0.56 0.60
Adjusted 0.49 0.44 0.48 0.51 0.54
Liquidity Ratio
Current Ratio
Reported 6.69 2.49 3.99 3.29 3.43
Adjusted 6.70 2.49 4.00 3.30 3.45
Solvency Ratios
Debt to Equity
Reported 0.25 0.53 0.49 0.58 0.60
Adjusted 0.41 0.67 0.67 0.81 0.92
Debt to Capital
Reported 0.20 0.35 0.33 0.37 0.37
Adjusted 0.29 0.40 0.40 0.45 0.48
Financial Leverage
Reported 1.59 1.85 1.91 1.95 1.99
Adjusted 1.59 1.94 1.99 2.12 2.30
Profitability Ratios
Net Profit Margin
Reported 28.28% 24.78% 26.38% 19.29% 20.79%
Adjusted 28.11% 22.95% 25.98% 17.77% 18.80%
Return on Equity (ROE)
Reported 21.72% 21.98% 26.41% 21.06% 24.97%
Adjusted 21.81% 19.83% 24.65% 19.29% 23.51%
Return on Assets (ROA)
Reported 13.70% 11.87% 13.81% 10.81% 12.52%
Adjusted 13.73% 10.21% 12.38% 9.10% 10.20%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illumina Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Illumina Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Illumina Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Illumina Inc.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Illumina Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illumina Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Illumina Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illumina Inc.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Illumina Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Revenue 3,543  3,333  2,752  2,398  2,220 
Total assets 7,316  6,959  5,257  4,281  3,688 
Activity Ratio
Total asset turnover1 0.48 0.48 0.52 0.56 0.60
Adjusted
Selected Financial Data (US$ in millions)
Revenue 3,543  3,333  2,752  2,398  2,220 
Adjusted total assets2 7,254  7,493  5,776  4,685  4,091 
Activity Ratio
Adjusted total asset turnover3 0.49 0.44 0.48 0.51 0.54

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
Total asset turnover = Revenue ÷ Total assets
= 3,543 ÷ 7,316 = 0.48

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 3,543 ÷ 7,254 = 0.49

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illumina Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 4,451  4,490  2,980  2,318  2,097 
Current liabilities 665  1,804  746  705  610 
Liquidity Ratio
Current ratio1 6.69 2.49 3.99 3.29 3.43
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 4,453  4,492  2,983  2,322  2,105 
Current liabilities 665  1,804  746  705  610 
Liquidity Ratio
Adjusted current ratio3 6.70 2.49 4.00 3.30 3.45

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
Current ratio = Current assets ÷ Current liabilities
= 4,451 ÷ 665 = 6.69

2 Adjusted current assets. See details »

3 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 4,453 ÷ 665 = 6.70

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Illumina Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 1,141  1,997  1,336  1,272  1,100 
Total Illumina stockholders’ equity 4,613  3,758  2,749  2,197  1,849 
Solvency Ratio
Debt to equity1 0.25 0.53 0.49 0.58 0.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 1,881  2,599  1,940  1,795  1,629 
Adjusted total stockholders’ equity3 4,566  3,857  2,901  2,209  1,775 
Solvency Ratio
Adjusted debt to equity4 0.41 0.67 0.67 0.81 0.92

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
Debt to equity = Total debt ÷ Total Illumina stockholders’ equity
= 1,141 ÷ 4,613 = 0.25

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 1,881 ÷ 4,566 = 0.41

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Illumina Inc.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 1,141  1,997  1,336  1,272  1,100 
Total capital 5,754  5,755  4,085  3,469  2,949 
Solvency Ratio
Debt to capital1 0.20 0.35 0.33 0.37 0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 1,881  2,599  1,940  1,795  1,629 
Adjusted total capital3 6,447  6,456  4,841  4,004  3,405 
Solvency Ratio
Adjusted debt to capital4 0.29 0.40 0.40 0.45 0.48

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
Debt to capital = Total debt ÷ Total capital
= 1,141 ÷ 5,754 = 0.20

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 1,881 ÷ 6,447 = 0.29

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Illumina Inc.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 7,316  6,959  5,257  4,281  3,688 
Total Illumina stockholders’ equity 4,613  3,758  2,749  2,197  1,849 
Solvency Ratio
Financial leverage1 1.59 1.85 1.91 1.95 1.99
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 7,254  7,493  5,776  4,685  4,091 
Adjusted total stockholders’ equity3 4,566  3,857  2,901  2,209  1,775 
Solvency Ratio
Adjusted financial leverage4 1.59 1.94 1.99 2.12 2.30

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
Financial leverage = Total assets ÷ Total Illumina stockholders’ equity
= 7,316 ÷ 4,613 = 1.59

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 7,254 ÷ 4,566 = 1.59

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Illumina Inc.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 1,002  826  726  463  462 
Revenue 3,543  3,333  2,752  2,398  2,220 
Profitability Ratio
Net profit margin1 28.28% 24.78% 26.38% 19.29% 20.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 996  765  715  426  417 
Revenue 3,543  3,333  2,752  2,398  2,220 
Profitability Ratio
Adjusted net profit margin3 28.11% 22.95% 25.98% 17.77% 18.80%

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 profit margin = 100 × Net income attributable to Illumina stockholders ÷ Revenue
= 100 × 1,002 ÷ 3,543 = 28.28%

2 Adjusted consolidated net income. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted consolidated net income ÷ Revenue
= 100 × 996 ÷ 3,543 = 28.11%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illumina Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 1,002  826  726  463  462 
Total Illumina stockholders’ equity 4,613  3,758  2,749  2,197  1,849 
Profitability Ratio
ROE1 21.72% 21.98% 26.41% 21.06% 24.97%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 996  765  715  426  417 
Adjusted total stockholders’ equity3 4,566  3,857  2,901  2,209  1,775 
Profitability Ratio
Adjusted ROE4 21.81% 19.83% 24.65% 19.29% 23.51%

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
ROE = 100 × Net income attributable to Illumina stockholders ÷ Total Illumina stockholders’ equity
= 100 × 1,002 ÷ 4,613 = 21.72%

2 Adjusted consolidated net income. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted consolidated net income ÷ Adjusted total stockholders’ equity
= 100 × 996 ÷ 4,566 = 21.81%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Illumina Inc.’s adjusted ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Jan 1, 2017 Jan 3, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Illumina stockholders 1,002  826  726  463  462 
Total assets 7,316  6,959  5,257  4,281  3,688 
Profitability Ratio
ROA1 13.70% 11.87% 13.81% 10.81% 12.52%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 996  765  715  426  417 
Adjusted total assets3 7,254  7,493  5,776  4,685  4,091 
Profitability Ratio
Adjusted ROA4 13.73% 10.21% 12.38% 9.10% 10.20%

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
ROA = 100 × Net income attributable to Illumina stockholders ÷ Total assets
= 100 × 1,002 ÷ 7,316 = 13.70%

2 Adjusted consolidated net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted consolidated net income ÷ Adjusted total assets
= 100 × 996 ÷ 7,254 = 13.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illumina Inc.’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.