Illumina Inc. (NASDAQ:ILMN)

Current Ratio

The current ratio exhibited significant fluctuations over the analyzed period. Beginning at 3.29 in 2016, it increased moderately to 3.99 in 2017 before sharply declining to 2.49 in 2018. There was a marked improvement in 2019, with the ratio peaking at 6.69, followed by a decrease to 3.6 in 2020. This indicates varying levels of short-term liquidity, with 2019 reflecting exceptional current asset coverage of current liabilities.

Quick Ratio

The quick ratio followed a trend similar to the current ratio. It rose from 2.75 in 2016 to 3.43 in 2017, then dropped to 2.23 in 2018. A substantial increase occurred in 2019, reaching 6, before decreasing to 3.18 in 2020. The data suggests that the company's liquid assets, excluding inventory, fluctuated considerably but remained robust, especially in 2019.

Cash Ratio

The cash ratio showed comparable variability. Starting at 2.21 in 2016, it grew to 2.88 in 2017, then declined to 1.95 in 2018. A notable spike occurred in 2019, achieving 5.13, and subsequently the ratio reduced to 2.79 in 2020. This pattern reflects changes in the company's most liquid assets over time, with 2019 again standing out as a year of particularly strong cash and cash equivalents relative to current liabilities.

Current Assets

Current assets increased significantly from 2,318 million US dollars in 2016 to 4,483 million US dollars in 2020. The growth was particularly notable between 2017 and 2018, where assets jumped from 2,980 to 4,490 million US dollars, after which the value stabilized around 4,450 to 4,480 million US dollars.

Current Liabilities

Current liabilities exhibited considerable volatility over the analyzed period. Starting at 705 million US dollars in 2016, liabilities increased modestly to 746 million US dollars in 2017, then surged sharply to 1,804 million US dollars in 2018. Following this spike, liabilities decreased to 665 million US dollars in 2019 before rising again to 1,244 million US dollars by 2020.

Current Ratio

The current ratio showed fluctuating trends, reflecting changes in both current assets and liabilities. The ratio was high in 2016 and 2017 at 3.29 and 3.99 respectively, dropped markedly to 2.49 in 2018 coinciding with the rise in liabilities, then peaked at 6.69 in 2019 driven by a reduction in liabilities. By 2020, the ratio moderated to 3.6, indicating a balanced level of liquidity relative to prior years.

The analysis of the financial data over the five-year period reveals notable fluctuations in liquidity and short-term financial obligations.

Total Quick Assets

There is a general upward trend in total quick assets from 2016 to 2018, increasing from US$1,940 million to US$4,026 million. However, this value stabilizes and slightly declines thereafter, reaching US$3,959 million by the end of 2020. This suggests initial strengthening of highly liquid assets followed by a plateau and slight decrease in the most recent years.

Current Liabilities

The current liabilities exhibit significant volatility across the periods. Starting at US$705 million in 2016, they remain relatively stable through 2017, then sharply spike to US$1,804 million in 2018. In 2019, these liabilities drop markedly to US$665 million before increasing again to US$1,244 million by the end of 2020. This erratic movement indicates inconsistency in short-term debt obligations or payables management.

Quick Ratio

The quick ratio follows a varying pattern consistent with the movements in both quick assets and current liabilities. It rises steadily from 2.75 in 2016 to a peak of 6.0 in 2019, reflecting an exceptionally strong liquidity position that year. The ratio decreases thereafter to 3.18 in 2020 but remains above the initial levels. This indicates the company maintained a strong capability to cover current liabilities with quick assets, though the peak in 2019 may represent an abnormal level potentially due to the sharp drop in current liabilities that year.

In summary, the financial data reveals increased quick assets through 2018, variable current liabilities with a sharp increase and decrease, and a fluctuating quick ratio that peaked significantly in 2019. The overall liquidity position appears strong throughout the period but marked by notable fluctuations, suggesting periods of adjustment or changing strategies in managing short-term obligations and liquid assets.

Total Cash Assets

The total cash assets showed a positive trend over the five-year period. Starting at 1,559 million US dollars in 2016, there was a steady increase to 2,145 million in 2017 and a more substantial rise to 3,512 million in 2018. After a slight dip to 3,414 million in 2019, cash assets increased again to 3,472 million in 2020. Overall, the company maintained a strong liquidity buffer, with cash holdings more than doubling from 2016 to 2020.

Current Liabilities

Current liabilities exhibited greater volatility across the same period. Beginning at 705 million US dollars in 2016, they slightly increased to 746 million in 2017, followed by a sharp surge to 1,804 million in 2018. However, these liabilities decreased significantly to 665 million in 2019 before rising again to 1,244 million in 2020. This fluctuation suggests changes in short-term obligations that could reflect varying operational or financing activities.

Cash Ratio

The cash ratio, which measures the company's ability to cover its current liabilities with cash assets, demonstrated notable variability but remained at generally strong levels. Starting at 2.21 in 2016, it increased to 2.88 in 2017, then declined to 1.95 in 2018, coinciding with the sharp rise in current liabilities. In 2019, the ratio peaked at 5.13, indicating exceptionally high liquidity relative to liabilities, before settling at 2.79 in 2020. Despite these fluctuations, the ratio consistently stayed well above 1.0, signifying a robust capacity to meet short-term obligations with cash.