Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Illumina Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2020 13.98% = 8.65% × 1.62
Dec 29, 2019 21.72% = 13.70% × 1.59
Dec 30, 2018 21.98% = 11.87% × 1.85
Dec 31, 2017 26.41% = 13.81% × 1.91
Dec 31, 2016 21.06% = 10.81% × 1.95

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Illumina Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 13.98% = 20.25% × 0.43 × 1.62
Dec 29, 2019 21.72% = 28.28% × 0.48 × 1.59
Dec 30, 2018 21.98% = 24.78% × 0.48 × 1.85
Dec 31, 2017 26.41% = 26.38% × 0.52 × 1.91
Dec 31, 2016 21.06% = 19.29% × 0.56 × 1.95

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Illumina Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 13.98% = 0.77 × 0.95 × 27.94% × 0.43 × 1.62
Dec 29, 2019 21.72% = 0.89 × 0.96 × 33.36% × 0.48 × 1.59
Dec 30, 2018 21.98% = 0.88 × 0.94 × 29.85% × 0.48 × 1.85
Dec 31, 2017 26.41% = 0.67 × 0.97 × 40.99% × 0.52 × 1.91
Dec 31, 2016 21.06% = 0.78 × 0.95 × 26.22% × 0.56 × 1.95

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2020 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Illumina Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2020 8.65% = 20.25% × 0.43
Dec 29, 2019 13.70% = 28.28% × 0.48
Dec 30, 2018 11.87% = 24.78% × 0.48
Dec 31, 2017 13.81% = 26.38% × 0.52
Dec 31, 2016 10.81% = 19.29% × 0.56

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Illumina Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2020 8.65% = 0.77 × 0.95 × 27.94% × 0.43
Dec 29, 2019 13.70% = 0.89 × 0.96 × 33.36% × 0.48
Dec 30, 2018 11.87% = 0.88 × 0.94 × 29.85% × 0.48
Dec 31, 2017 13.81% = 0.67 × 0.97 × 40.99% × 0.52
Dec 31, 2016 10.81% = 0.78 × 0.95 × 26.22% × 0.56

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2020 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Illumina Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2020 20.25% = 0.77 × 0.95 × 27.94%
Dec 29, 2019 28.28% = 0.89 × 0.96 × 33.36%
Dec 30, 2018 24.78% = 0.88 × 0.94 × 29.85%
Dec 31, 2017 26.38% = 0.67 × 0.97 × 40.99%
Dec 31, 2016 19.29% = 0.78 × 0.95 × 26.22%

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).

The primary reason for the decrease in net profit margin ratio over 2020 year is the decrease in operating profitability measured by EBIT margin ratio.