Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Illumina Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed relative stability during 2017 and 2018, fluctuating slightly around the 3.0 mark. A significant increase occurred starting in early 2019, with the ratio rising to around 4.0 and maintaining elevated levels throughout 2019 and into 2021. However, a mild decline was observed in mid to late 2020 before the trend resumed its upward trajectory, peaking above 4.3 in mid-2021 and slightly decreasing afterwards. This suggests improved efficiency in using fixed assets to generate sales over the observed period, particularly from 2019 onward.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted net fixed asset turnover ratio mirrored the initial period trends of the basic ratio through 2018, around 3.0. Beginning in early 2019, a notable decline took place, dropping to approximately 2.4 and remaining consistently lower compared to the basic net fixed asset turnover. The ratio gradually decreased further until late 2020, then experienced a modest recovery but hovered below 2.7 by late 2021. The inclusion of operating leases and right-of-use assets results in a lower turnover ratio, highlighting the increasing impact of these assets on the fixed asset base and their effect on asset utilization metrics.
- Total Asset Turnover
- The total asset turnover ratio displayed a gentle downward trend overall. Through 2017 and 2018, the ratio was relatively stable around 0.48 to 0.53, indicating steady efficiency in generating revenue from total assets. From 2019 onwards, however, a gradual decline is evident, with values dropping below 0.5 and reaching a low near 0.28 by late 2021. This decline suggests decreasing efficiency in the use of the entire asset base to produce sales, possibly due to asset growth outpacing revenue growth or changes in the asset composition.
- Equity Turnover
- Equity turnover exhibited a decline during the observed period. Initially, the ratio remained near or above 0.9 through 2017 and early 2018, indicating relatively high efficiency in utilizing shareholders' equity to generate revenues. From mid-2018 onward, a slow but steady decline occurred, with the ratio reaching below 0.7 by late 2020. A small recovery was visible in 2021, but this was followed by a sharp drop to 0.4 by the last observed quarter. The steady decrease in equity turnover suggests either an increase in equity relative to revenue or a slowdown in revenue growth relative to equity, which could reflect changes in financing structure or profitability performance.
Net Fixed Asset Turnover
Illumina Inc., net fixed asset turnover calculation (quarterly data)
| Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 30, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue | 1,108) | 1,126) | 1,093) | 953) | 794) | 633) | 859) | 952) | 907) | 838) | 846) | 868) | 853) | 830) | 782) | 778) | 714) | 662) | 598) | ||||||
| Property and equipment, net | 1,009) | 915) | 915) | 922) | 910) | 890) | 890) | 889) | 875) | 854) | 852) | 1,075) | 1,060) | 1,036) | 983) | 931) | 862) | 837) | 734) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 4.24 | 4.33 | 3.80 | 3.51 | 3.56 | 3.77 | 4.00 | 3.99 | 3.95 | 3.99 | 3.99 | 3.10 | 3.06 | 3.00 | 2.99 | 2.96 | 3.01 | 2.97 | 3.30 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 10.75 | 10.41 | 9.67 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 4.89 | 4.92 | 4.93 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 7.75 | 7.66 | 7.43 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 7.71 | 7.84 | 7.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 3.11 | 3.02 | 2.95 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 5.40 | 5.27 | 5.06 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 4.95 | 4.79 | 4.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 2.57 | 2.61 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 4.79 | 3.89 | 3.31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 3.99 | 3.69 | 2.82 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 5.54 | 5.83 | 5.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 6.84 | 6.54 | 6.51 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02).
1 Q3 2021 Calculation
Net fixed asset turnover
= (RevenueQ3 2021
+ RevenueQ2 2021
+ RevenueQ1 2021
+ RevenueQ4 2020)
÷ Property and equipment, net
= (1,108 + 1,126 + 1,093 + 953)
÷ 1,009 = 4.24
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrated a general upward trajectory from April 2017 through October 2021, increasing from $598 million to a peak of $1,126 million in July 2021. There was a notable dip during mid-2020, with revenue declining to $633 million in June 2020, possibly reflecting broader economic disruptions during that period. After this dip, revenue recovered strongly, reaching levels above $1 billion by early 2021 and maintaining that performance through October 2021.
- Property and Equipment, Net
- The net value of property and equipment showed a gradual increase over the observation period, rising from $734 million in April 2017 to $1,009 million in October 2021. The growth was relatively steady, although there was a slight plateau between December 2019 and June 2020, where values hovered around $889 million to $890 million. This could suggest either a pause in capital expenditure or asset disposals during that period. Subsequently, values resumed increasing, indicating continued investment in fixed assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of net fixed assets, exhibited some fluctuations but an overall improving trend. Initially, the ratio decreased from 3.3 in April 2017 to around 2.96 in December 2017, reflecting slower revenue growth relative to asset growth. From early 2018 through late 2019, the ratio stabilized around 3.0 to 4.0, suggesting improved efficiency in asset utilization. In 2020, despite revenue volatility, turnover ratios remained relatively high, peaking at 4.0 and above during parts of 2019 and 2021, reaching approximately 4.33 in July 2021. This indicates that the company has generally enhanced its efficiency in generating revenue from its fixed assets over time.
- Summary of Insights
- Over the analyzed period, the company showed significant growth in revenue supported by consistent investments in property and equipment. The temporary revenue decline around mid-2020 did not result in a proportional drop in asset investment, and asset turnover efficiency improved, suggesting effective management of the asset base relative to sales. The recovery and further growth of revenue post-2020 alongside increasing fixed asset values and improving turnover ratios indicate a positive operational trend and asset utilization efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Illumina Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 30, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue | 1,108) | 1,126) | 1,093) | 953) | 794) | 633) | 859) | 952) | 907) | 838) | 846) | 868) | 853) | 830) | 782) | 778) | 714) | 662) | 598) | ||||||
| Property and equipment, net | 1,009) | 915) | 915) | 922) | 910) | 890) | 890) | 889) | 875) | 854) | 852) | 1,075) | 1,060) | 1,036) | 983) | 931) | 862) | 837) | 734) | ||||||
| Operating lease right-of-use assets | 676) | 566) | 529) | 532) | 545) | 549) | 559) | 555) | 555) | 558) | 574) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 1,685) | 1,481) | 1,444) | 1,454) | 1,455) | 1,439) | 1,449) | 1,444) | 1,430) | 1,412) | 1,426) | 1,075) | 1,060) | 1,036) | 983) | 931) | 862) | 837) | 734) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.54 | 2.68 | 2.41 | 2.23 | 2.23 | 2.33 | 2.45 | 2.45 | 2.42 | 2.41 | 2.38 | 3.10 | 3.06 | 3.00 | 2.99 | 2.96 | 3.01 | 2.97 | 3.30 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | 5.26 | 4.99 | 4.90 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02).
1 Q3 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenueQ3 2021
+ RevenueQ2 2021
+ RevenueQ1 2021
+ RevenueQ4 2020)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (1,108 + 1,126 + 1,093 + 953)
÷ 1,685 = 2.54
2 Click competitor name to see calculations.
The company exhibited a generally increasing trend in revenue from April 2017 to October 2021, with some fluctuations. Starting at US$598 million in April 2017, revenue rose steadily to reach a peak of approximately US$1,126 million by July 2021, followed by a slight decline to US$1,108 million in October 2021. Notably, there was a substantial dip in revenue during the middle of 2020, coinciding with global economic disruptions, with the lowest point at US$633 million in June 2020.
Regarding property and equipment, net value showed consistent growth over the period, increasing from US$734 million in April 2017 to US$1,685 million by October 2021. The most significant surge occurred between March 2019 and October 2021, where the asset base expanded rapidly, reflecting possible capital investments or acquisitions. This steady rise indicates ongoing investment in fixed assets and operating lease rights.
The net fixed asset turnover ratio, which measures how efficiently the company uses its fixed assets to generate revenue, displayed variability but a declining trend during certain intervals. Initially, the ratio started at 3.3 in April 2017 and gradually decreased to around 2.23 by December 2020, suggesting reduced efficiency or the impact of expanding asset base outpacing revenue growth. However, from early 2021, the ratio showed signs of recovery, improving to approximately 2.68 in July 2021 before slightly declining again to 2.54 by October 2021. This recovery may indicate improved utilization of fixed assets following the earlier expansion phase.
- Revenue Trends
- Overall growth with a peak in mid-2021, impacted by a mid-2020 dip; revenue almost doubled over the analyzed period.
- Property and Equipment (Net)
- Consistent increase, with a significant rise from early 2019 onwards, reflecting substantial investment in assets.
- Net Fixed Asset Turnover Ratio
- Declined through to late 2020 indicating reduced asset efficiency, followed by a rebound in early to mid-2021, suggesting better fixed asset utilization.
In summary, the data reveals that although the company expanded its asset base considerably, especially from 2019 to 2021, this expansion temporarily outpaced revenue growth, leading to a dip in asset turnover efficiency. However, the subsequent recovery in the turnover ratio alongside rising revenues post-2020 indicates a positive adjustment in managing and leveraging fixed assets effectively.
Total Asset Turnover
Illumina Inc., total asset turnover calculation (quarterly data)
| Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 30, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue | 1,108) | 1,126) | 1,093) | 953) | 794) | 633) | 859) | 952) | 907) | 838) | 846) | 868) | 853) | 830) | 782) | 778) | 714) | 662) | 598) | ||||||
| Total assets | 15,063) | 8,675) | 8,755) | 7,585) | 7,404) | 7,248) | 7,261) | 7,316) | 7,089) | 6,973) | 7,390) | 6,959) | 6,759) | 5,851) | 5,542) | 5,257) | 5,046) | 4,858) | 4,598) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.28 | 0.46 | 0.40 | 0.43 | 0.44 | 0.46 | 0.49 | 0.48 | 0.49 | 0.49 | 0.46 | 0.48 | 0.48 | 0.53 | 0.53 | 0.52 | 0.51 | 0.51 | 0.53 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.37 | 0.36 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 0.37 | 0.40 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.41 | 0.40 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 0.34 | 0.34 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.58 | 0.56 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.41 | 0.39 | 0.37 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 0.51 | 0.51 | 0.49 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.51 | 0.52 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 0.39 | 0.33 | 0.29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 0.57 | 0.58 | 0.52 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 0.53 | 0.57 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 0.57 | 0.55 | 0.53 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02).
1 Q3 2021 Calculation
Total asset turnover
= (RevenueQ3 2021
+ RevenueQ2 2021
+ RevenueQ1 2021
+ RevenueQ4 2020)
÷ Total assets
= (1,108 + 1,126 + 1,093 + 953)
÷ 15,063 = 0.28
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning revenue, total assets, and total asset turnover ratio.
- Revenue Trends
- Revenue exhibits a general upward trajectory over the observed periods, increasing from 598 million USD in early 2017 to a peak of 1,126 million USD in mid-2021. There are fluctuations in between, including a notable decline in the first half of 2020, dropping to 633 million USD, likely reflective of external market or operational challenges during that time. Subsequently, revenue recovers strongly, exceeding previous levels by the end of 2021. This pattern suggests resilience and potential growth momentum despite temporary setbacks.
- Total Assets Trends
- Total assets consistently increase from 4,598 million USD in early 2017 to a significant jump to 15,063 million USD by the last quarter of 2021. The growth appears relatively steady initially but accelerates notably toward the end of the period. This acceleration indicates substantial asset accumulation, possibly due to acquisitions, capital investments, or changes in asset valuation, implying a strategic expansion or increased resource base.
- Total Asset Turnover Ratio Trends
- The total asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, shows a declining trend over time. Starting at 0.53 in early 2017, the ratio gradually decreases, reaching a low point of 0.28 by late 2021. The decline suggests that although total assets have increased substantially, revenue growth has not kept pace proportionally, indicating diminishing efficiency in asset use or a shift towards asset-intensive operations.
Overall, the company's financial data portrays a narrative of rising revenue and expanding asset base, accompanied by decreasing asset turnover efficiency. This might imply strategic repositioning involving increased investment in assets, with potentially longer-term plans for converting these assets into revenue. However, the sharp fall in turnover ratio in the last period warrants further investigation into asset utilization practices and operational efficiency.
Equity Turnover
Illumina Inc., equity turnover calculation (quarterly data)
| Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 29, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 30, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue | 1,108) | 1,126) | 1,093) | 953) | 794) | 633) | 859) | 952) | 907) | 838) | 846) | 868) | 853) | 830) | 782) | 778) | 714) | 662) | 598) | ||||||
| Total Illumina stockholders’ equity | 10,593) | 5,180) | 4,922) | 4,694) | 4,700) | 4,563) | 4,635) | 4,613) | 4,439) | 4,332) | 3,985) | 3,758) | 3,503) | 3,257) | 3,008) | 2,749) | 2,855) | 2,715) | 2,551) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 0.40 | 0.77 | 0.71 | 0.69 | 0.69 | 0.73 | 0.77 | 0.77 | 0.78 | 0.79 | 0.85 | 0.89 | 0.93 | 0.95 | 0.98 | 1.00 | 0.91 | 0.92 | 0.95 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 4.07 | 4.27 | 3.66 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 2.96 | 2.93 | 2.56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 1.22 | 1.21 | 1.14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 0.65 | 0.62 | 0.61 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 3.58 | 4.15 | 3.69 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 1.27 | 1.34 | 1.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 1.30 | 1.28 | 1.28 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 1.33 | 1.41 | 1.73 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 0.91 | 0.79 | 0.68 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 0.78 | 0.82 | 0.77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.01 | 1.04 | 1.02 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 0.75 | 0.73 | 0.71 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-30), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02).
1 Q3 2021 Calculation
Equity turnover
= (RevenueQ3 2021
+ RevenueQ2 2021
+ RevenueQ1 2021
+ RevenueQ4 2020)
÷ Total Illumina stockholders’ equity
= (1,108 + 1,126 + 1,093 + 953)
÷ 10,593 = 0.40
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's performance over the observed periods.
- Revenue Trends
- Revenue exhibited a generally upward trajectory from April 2017 through October 2021, increasing from $598 million to a peak of $1,126 million. There were some fluctuations, with slight declines observed around March and June 2020, corresponding with the $859 million and $633 million figures, respectively, indicating a temporary contraction. However, the recovery was swift, as revenue rebounded to $794 million in September 2020 and continued rising thereafter. This pattern suggests resilience and a strong recovery capability.
- Total Illumina Stockholders’ Equity
- The stockholders' equity showed a steady increase from $2,551 million in April 2017 to $5,180 million by October 2021. A significant jump is noticed in the final data point, reaching $10,593 million, indicating a substantial equity infusion or retained earnings accumulation towards the end of the period. The overall growth in equity indicates strengthening financial stability and an expanding capital base.
- Equity Turnover Ratio
- The equity turnover ratio, measuring revenue generated per dollar of equity, demonstrated a declining trend throughout the period. Starting at 0.95 in April 2017, it gradually decreased to 0.40 by October 2021. This decline suggests that although equity increased substantially, revenue generation relative to equity has diminished. Such a pattern could indicate either increased equity not yet fully leveraged into revenue or a shift in business strategy impacting efficiency metrics.
In summary, the company’s revenue grew strongly over the analyzed intervals, punctuated by a temporary revenue dip likely attributable to external disruptions. Meanwhile, stockholders’ equity expanded substantially, particularly toward the last observation, signaling enhanced financial capacity. However, the decreasing equity turnover ratio points to a reduction in operational efficiency in terms of revenue generated per equity dollar, which may warrant further analysis to understand underlying causes or strategic changes.