Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Illumina Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Illumina Inc.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Illumina Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Illumina Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Illumina Inc.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Illumina Inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Gross Profit Margin
Illumina Inc., gross profit margin calculation, comparison to benchmarks
| Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Jan 1, 2017 | Jan 3, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 2,467 | 2,300 | 1,826 | 1,666 | 1,549 | |
| Revenue | 3,543 | 3,333 | 2,752 | 2,398 | 2,220 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 69.63% | 69.01% | 66.35% | 69.48% | 69.80% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 52.46% | 51.32% | 47.75% | 54.09% | 54.19% | |
| AbbVie Inc. | 77.64% | 76.44% | 75.05% | 77.25% | 80.31% | |
| Amgen Inc. | 80.38% | 81.80% | 81.33% | 80.99% | 79.82% | |
| Biogen Inc. | 86.40% | 86.50% | 86.72% | 87.08% | 88.48% | |
| Bristol-Myers Squibb Co. | 69.10% | 70.98% | 70.80% | 74.54% | 76.39% | |
| Eli Lilly & Co. | 78.85% | 73.81% | 73.46% | 73.35% | 74.76% | |
| Gilead Sciences Inc. | 78.86% | 77.61% | 82.97% | 85.77% | 87.54% | |
| Johnson & Johnson | 66.42% | 66.79% | 66.84% | 69.84% | 69.27% | |
| Merck & Co. Inc. | 69.87% | 68.06% | 68.16% | 65.10% | 62.19% | |
| Pfizer Inc. | 80.25% | 79.03% | 78.61% | 76.66% | 80.25% | |
| Regeneron Pharmaceuticals Inc. | 90.05% | 93.53% | 93.24% | 93.83% | 90.43% | |
| Vertex Pharmaceuticals Inc. | 86.84% | 86.56% | 88.95% | 87.64% | 87.94% | |
| Zoetis Inc. | 68.18% | 67.19% | 66.55% | 65.92% | 63.53% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,467 ÷ 3,543 = 69.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Illumina Inc.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Illumina Inc., operating profit margin calculation, comparison to benchmarks
| Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Jan 1, 2017 | Jan 3, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Income from operations | 985 | 883 | 606 | 587 | 613 | |
| Revenue | 3,543 | 3,333 | 2,752 | 2,398 | 2,220 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 27.80% | 26.49% | 22.02% | 24.48% | 27.61% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 14.21% | 11.94% | 6.30% | 15.27% | 14.05% | |
| AbbVie Inc. | 39.03% | 19.49% | 33.99% | 36.60% | 32.97% | |
| Amgen Inc. | 43.57% | 45.55% | 45.76% | 44.74% | 40.44% | |
| Biogen Inc. | 48.98% | 43.77% | 43.54% | 44.99% | 45.44% | |
| Bristol-Myers Squibb Co. | 22.62% | 22.69% | 17.39% | 23.83% | 11.41% | |
| Eli Lilly & Co. | 22.29% | 15.15% | 9.38% | 16.30% | 13.47% | |
| Gilead Sciences Inc. | 19.38% | 37.83% | 55.04% | 58.87% | 69.03% | |
| Johnson & Johnson | 24.15% | 24.27% | 24.07% | 28.72% | 25.05% | |
| Merck & Co. Inc. | 24.77% | 19.62% | 16.28% | 13.51% | 17.54% | |
| Pfizer Inc. | 25.46% | 26.10% | 25.92% | 22.73% | 24.20% | |
| Regeneron Pharmaceuticals Inc. | 28.10% | 37.77% | 35.41% | 27.38% | 30.51% | |
| Vertex Pharmaceuticals Inc. | 28.77% | 20.84% | 4.95% | 0.58% | -45.23% | |
| Zoetis Inc. | 31.42% | 31.12% | 32.15% | 28.48% | 15.74% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | 26.77% | 25.01% | 26.00% | 28.77% | 28.33% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 19.26% | 18.28% | 18.86% | 20.13% | 20.25% | |
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
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 985 ÷ 3,543 = 27.80%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Illumina Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Profit Margin
Illumina Inc., net profit margin calculation, comparison to benchmarks
| Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Jan 1, 2017 | Jan 3, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 11.56% | 7.74% | 1.74% | 6.71% | 21.68% | |
| AbbVie Inc. | 23.69% | 17.36% | 18.82% | 23.22% | 22.50% | |
| Amgen Inc. | 35.32% | 37.25% | 9.08% | 35.27% | 33.13% | |
| Biogen Inc. | 40.96% | 32.93% | 20.69% | 32.34% | 32.95% | |
| Bristol-Myers Squibb Co. | 13.15% | 21.81% | 4.85% | 22.94% | 9.45% | |
| Eli Lilly & Co. | 37.27% | 13.16% | -0.89% | 12.90% | 12.07% | |
| Gilead Sciences Inc. | 24.35% | 25.16% | 18.03% | 45.07% | 56.32% | |
| Johnson & Johnson | 18.42% | 18.75% | 1.70% | 23.01% | 21.99% | |
| Merck & Co. Inc. | 21.01% | 14.71% | 5.97% | 9.85% | 11.25% | |
| Pfizer Inc. | 31.45% | 20.79% | 40.55% | 13.66% | 14.25% | |
| Regeneron Pharmaceuticals Inc. | 26.91% | 36.42% | 20.41% | 18.42% | 15.50% | |
| Vertex Pharmaceuticals Inc. | 28.27% | 68.80% | 10.59% | -6.58% | -53.89% | |
| Zoetis Inc. | 23.96% | 24.52% | 16.28% | 16.80% | 7.11% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | 23.87% | 20.29% | 12.71% | 21.05% | 22.22% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 16.89% | 14.36% | 10.18% | 14.42% | 15.44% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Illumina Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Return on Equity (ROE)
Illumina Inc., ROE calculation, comparison to benchmarks
| Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Jan 1, 2017 | Jan 3, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 11.86% | 7.76% | 1.54% | 6.82% | 20.85% | |
| AbbVie Inc. | — | — | 104.16% | 128.41% | 130.39% | |
| Amgen Inc. | 81.07% | 67.15% | 7.84% | 25.85% | 24.71% | |
| Biogen Inc. | 44.13% | 33.98% | 20.13% | 30.50% | 37.84% | |
| Bristol-Myers Squibb Co. | 6.66% | 35.07% | 8.58% | 27.55% | 10.97% | |
| Eli Lilly & Co. | 319.09% | 32.88% | -1.76% | 19.54% | 16.53% | |
| Gilead Sciences Inc. | 23.91% | 25.51% | 22.64% | 71.48% | 97.70% | |
| Johnson & Johnson | 25.42% | 25.60% | 2.16% | 23.49% | 21.66% | |
| Merck & Co. Inc. | 37.99% | 23.30% | 6.97% | 9.78% | 9.94% | |
| Pfizer Inc. | 25.77% | 17.59% | 29.88% | 12.12% | 10.75% | |
| Regeneron Pharmaceuticals Inc. | 19.08% | 27.91% | 19.51% | 20.13% | 17.40% | |
| Vertex Pharmaceuticals Inc. | 19.34% | 47.28% | 12.99% | -9.69% | -59.19% | |
| Zoetis Inc. | 55.39% | 65.35% | 48.81% | 55.21% | 31.74% | |
| ROE, Sector | ||||||
| Pharmaceuticals & Biotechnology | 30.26% | 28.24% | 14.79% | 23.42% | 23.43% | |
| ROE, Industry | ||||||
| Health Care | 23.89% | 21.64% | 13.76% | 19.15% | 18.87% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Illumina Inc.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Illumina Inc., ROA calculation, comparison to benchmarks
| Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Jan 1, 2017 | Jan 3, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 5.43% | 3.53% | 0.63% | 2.66% | 10.72% | |
| AbbVie Inc. | 8.84% | 9.58% | 7.50% | 9.01% | 9.70% | |
| Amgen Inc. | 13.13% | 12.64% | 2.48% | 9.95% | 9.69% | |
| Biogen Inc. | 21.62% | 17.52% | 10.73% | 16.19% | 18.19% | |
| Bristol-Myers Squibb Co. | 2.65% | 14.06% | 3.00% | 13.22% | 4.93% | |
| Eli Lilly & Co. | 21.17% | 7.36% | -0.45% | 7.05% | 6.77% | |
| Gilead Sciences Inc. | 8.74% | 8.57% | 6.58% | 23.70% | 34.93% | |
| Johnson & Johnson | 9.59% | 10.00% | 0.83% | 11.71% | 11.55% | |
| Merck & Co. Inc. | 11.66% | 7.53% | 2.72% | 4.11% | 4.36% | |
| Pfizer Inc. | 9.72% | 7.00% | 12.40% | 4.20% | 4.16% | |
| Regeneron Pharmaceuticals Inc. | 14.29% | 20.83% | 13.67% | 12.84% | 11.34% | |
| Vertex Pharmaceuticals Inc. | 14.15% | 33.57% | 7.43% | -3.87% | -22.26% | |
| Zoetis Inc. | 12.99% | 13.25% | 10.06% | 10.73% | 4.28% | |
| ROA, Sector | ||||||
| Pharmaceuticals & Biotechnology | 9.66% | 9.34% | 5.20% | 8.89% | 9.61% | |
| ROA, Industry | ||||||
| Health Care | 8.69% | 8.13% | 5.22% | 7.59% | 7.84% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Illumina Inc.’s ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |