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: 2021-02-17), 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).
| 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 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Illumina Inc.’s operating profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Illumina Inc.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Illumina Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Illumina Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Gross Profit Margin
Illumina Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 2,203 | 2,467 | 2,300 | 1,826 | 1,666 | |
| Revenue | 3,239 | 3,543 | 3,333 | 2,752 | 2,398 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 68.01% | 69.63% | 69.01% | 66.35% | 69.48% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 66.41% | 77.64% | 76.44% | 75.05% | 77.25% | |
| Amgen Inc. | 74.59% | 80.38% | 81.80% | 81.33% | 80.99% | |
| Eli Lilly & Co. | 77.66% | 78.85% | 73.81% | 73.46% | 73.35% | |
| Gilead Sciences Inc. | 81.23% | 78.86% | 77.61% | 82.97% | 85.77% | |
| Johnson & Johnson | 65.58% | 66.42% | 66.79% | 66.84% | 69.84% | |
| Merck & Co. Inc. | 67.74% | 69.87% | 68.06% | 68.16% | 65.10% | |
| Pfizer Inc. | 79.26% | 80.25% | 79.03% | 78.61% | 76.66% | |
| Regeneron Pharmaceuticals Inc. | 86.82% | 90.05% | 93.53% | 93.24% | 93.83% | |
| Thermo Fisher Scientific Inc. | 49.67% | 44.35% | 44.57% | 45.15% | 45.80% | |
| Zoetis Inc. | 69.18% | 68.18% | 67.19% | 66.55% | 65.92% | |
Based on: 10-K (filing date: 2021-02-17), 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).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,203 ÷ 3,239 = 68.01%
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 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Operating Profit Margin
Illumina Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Income from operations | 580 | 985 | 883 | 606 | 587 | |
| Revenue | 3,239 | 3,543 | 3,333 | 2,752 | 2,398 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 17.91% | 27.80% | 26.49% | 22.02% | 24.48% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 24.81% | 39.03% | 19.49% | 33.99% | 36.60% | |
| Amgen Inc. | 37.70% | 43.57% | 45.55% | 45.76% | 44.74% | |
| Eli Lilly & Co. | 24.69% | 22.29% | 15.15% | 9.38% | 16.30% | |
| Gilead Sciences Inc. | 16.72% | 19.38% | 37.83% | 55.04% | 58.87% | |
| Johnson & Johnson | 23.60% | 24.15% | 24.27% | 24.07% | 28.72% | |
| Merck & Co. Inc. | 16.47% | 24.77% | 19.62% | 16.28% | 13.51% | |
| Pfizer Inc. | 19.47% | 25.46% | 26.10% | 25.92% | 22.73% | |
| Regeneron Pharmaceuticals Inc. | 42.09% | 28.10% | 37.77% | 35.41% | 27.38% | |
| Thermo Fisher Scientific Inc. | 24.19% | 17.99% | 15.53% | 14.19% | 13.40% | |
| Zoetis Inc. | 33.62% | 31.42% | 31.12% | 32.15% | 28.48% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 23.50% | 26.64% | 24.96% | 27.02% | 28.63% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 12.21% | 14.97% | 14.34% | 15.46% | 16.55% | |
Based on: 10-K (filing date: 2021-02-17), 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).
1 2020 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 580 ÷ 3,239 = 17.91%
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 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Net Profit Margin
Illumina Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Illumina stockholders | 656 | 1,002 | 826 | 726 | 463 | |
| Revenue | 3,239 | 3,543 | 3,333 | 2,752 | 2,398 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 20.25% | 28.28% | 24.78% | 26.38% | 19.29% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 10.08% | 23.69% | 17.36% | 18.82% | 23.22% | |
| Amgen Inc. | 29.97% | 35.32% | 37.25% | 9.08% | 35.27% | |
| Eli Lilly & Co. | 25.24% | 37.27% | 13.16% | -0.89% | 12.90% | |
| Gilead Sciences Inc. | 0.51% | 24.35% | 25.16% | 18.03% | 45.07% | |
| Johnson & Johnson | 17.82% | 18.42% | 18.75% | 1.70% | 23.01% | |
| Merck & Co. Inc. | 14.72% | 21.01% | 14.71% | 5.97% | 9.85% | |
| Pfizer Inc. | 22.95% | 31.45% | 20.79% | 40.55% | 13.66% | |
| Regeneron Pharmaceuticals Inc. | 41.35% | 26.91% | 36.42% | 20.41% | 18.42% | |
| Thermo Fisher Scientific Inc. | 19.79% | 14.47% | 12.06% | 10.64% | 11.06% | |
| Zoetis Inc. | 24.54% | 23.96% | 24.52% | 16.28% | 16.80% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 18.06% | 24.39% | 19.76% | 13.79% | 21.04% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 8.86% | 12.75% | 10.69% | 8.54% | 11.60% | |
Based on: 10-K (filing date: 2021-02-17), 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).
1 2020 Calculation
Net profit margin = 100 × Net income attributable to Illumina stockholders ÷ Revenue
= 100 × 656 ÷ 3,239 = 20.25%
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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Return on Equity (ROE)
Illumina Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Illumina stockholders | 656 | 1,002 | 826 | 726 | 463 | |
| Total Illumina stockholders’ equity | 4,694 | 4,613 | 3,758 | 2,749 | 2,197 | |
| Profitability Ratio | ||||||
| ROE1 | 13.98% | 21.72% | 21.98% | 26.41% | 21.06% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | 35.30% | — | — | 104.16% | 128.41% | |
| Amgen Inc. | 77.20% | 81.07% | 67.15% | 7.84% | 25.85% | |
| Eli Lilly & Co. | 109.79% | 319.09% | 32.88% | -1.76% | 19.54% | |
| Gilead Sciences Inc. | 0.68% | 23.91% | 25.51% | 22.64% | 71.48% | |
| Johnson & Johnson | 23.25% | 25.42% | 25.60% | 2.16% | 23.49% | |
| Merck & Co. Inc. | 27.91% | 37.99% | 23.30% | 6.97% | 9.78% | |
| Pfizer Inc. | 15.21% | 25.77% | 17.59% | 29.88% | 12.12% | |
| Regeneron Pharmaceuticals Inc. | 31.86% | 19.08% | 27.91% | 19.51% | 20.13% | |
| Thermo Fisher Scientific Inc. | 18.47% | 12.45% | 10.65% | 8.76% | 9.39% | |
| Zoetis Inc. | 43.46% | 55.39% | 65.35% | 48.81% | 55.21% | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 24.50% | 35.38% | 27.74% | 15.79% | 23.13% | |
| ROE, Industry | ||||||
| Health Care | 15.06% | 21.95% | 18.53% | 13.89% | 18.58% | |
Based on: 10-K (filing date: 2021-02-17), 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).
1 2020 Calculation
ROE = 100 × Net income attributable to Illumina stockholders ÷ Total Illumina stockholders’ equity
= 100 × 656 ÷ 4,694 = 13.98%
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 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Illumina Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Illumina stockholders | 656 | 1,002 | 826 | 726 | 463 | |
| Total assets | 7,585 | 7,316 | 6,959 | 5,257 | 4,281 | |
| Profitability Ratio | ||||||
| ROA1 | 8.65% | 13.70% | 11.87% | 13.81% | 10.81% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 3.07% | 8.84% | 9.58% | 7.50% | 9.01% | |
| Amgen Inc. | 11.54% | 13.13% | 12.64% | 2.48% | 9.95% | |
| Eli Lilly & Co. | 13.28% | 21.17% | 7.36% | -0.45% | 7.05% | |
| Gilead Sciences Inc. | 0.18% | 8.74% | 8.57% | 6.58% | 23.70% | |
| Johnson & Johnson | 8.41% | 9.59% | 10.00% | 0.83% | 11.71% | |
| Merck & Co. Inc. | 7.72% | 11.66% | 7.53% | 2.72% | 4.11% | |
| Pfizer Inc. | 6.23% | 9.72% | 7.00% | 12.40% | 4.20% | |
| Regeneron Pharmaceuticals Inc. | 20.47% | 14.29% | 20.83% | 13.67% | 12.84% | |
| Thermo Fisher Scientific Inc. | 9.23% | 6.33% | 5.22% | 3.93% | 4.40% | |
| Zoetis Inc. | 12.04% | 12.99% | 13.25% | 10.06% | 10.73% | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.21% | 10.51% | 8.83% | 5.47% | 8.67% | |
| ROA, Industry | ||||||
| Health Care | 5.20% | 7.67% | 6.69% | 5.24% | 7.31% | |
Based on: 10-K (filing date: 2021-02-17), 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).
1 2020 Calculation
ROA = 100 × Net income attributable to Illumina stockholders ÷ Total assets
= 100 × 656 ÷ 7,585 = 8.65%
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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |