Breaking Down Illumina, Inc. (ILMN) Financial Health: Key Insights for Investors

Breaking Down Illumina, Inc. (ILMN) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Diagnostics & Research | NASDAQ

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Understanding Illumina, Inc. (ILMN) Revenue Streams

Revenue Analysis

Illumina, Inc. reported total revenue of $4.25 billion in 2023, representing a 3.2% year-over-year growth from 2022.

Revenue Stream 2023 Revenue Percentage of Total Revenue
Sequencing Instrument Sales $1.58 billion 37.2%
Consumables and Reagents $2.41 billion 56.7%
Services and Other $260 million 6.1%

Geographic revenue breakdown:

  • North America: $2.15 billion (50.6%)
  • Europe: $1.02 billion (24%)
  • Asia-Pacific: $780 million (18.3%)
  • Rest of World: $290 million (7.1%)

Key revenue growth metrics for 2023:

  • Sequencing instrument sales growth: 5.4%
  • Consumables and reagents growth: 2.8%
  • Services revenue growth: 1.9%



A Deep Dive into Illumina, Inc. (ILMN) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 68.3% 71.2%
Operating Profit Margin -24.7% -15.6%
Net Profit Margin -27.5% -18.9%

Key profitability observations include:

  • Gross profit margin decreased from 71.2% to 68.3%
  • Operating losses widened from -15.6% to -24.7%
  • Net profit margin declined from -18.9% to -27.5%
Efficiency Metric 2023 Performance
Operating Expenses Ratio 92.5%
Research & Development Spend $811 million

Industry comparative analysis indicates underperformance relative to median technology sector profitability benchmarks.




Debt vs. Equity: How Illumina, Inc. (ILMN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($)
Total Long-Term Debt $2.84 billion
Total Short-Term Debt $456 million
Total Debt $3.296 billion

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.15
  • Credit Rating: BBB-

Financing Composition

Financing Type Percentage
Debt Financing 45%
Equity Financing 55%

Recent Debt Activities

In 2023, the company issued $750 million in convertible senior notes with a 2.25% coupon rate, maturing in 2028.




Assessing Illumina, Inc. (ILMN) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 1.15
Working Capital $1.38 billion

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $487 million
  • Investing Cash Flow: -$612 million
  • Financing Cash Flow: -$215 million
Liquidity Indicators 2023 Performance
Cash and Cash Equivalents $1.24 billion
Short-term Investments $782 million
Total Liquid Assets $2.02 billion

Key solvency metrics demonstrate financial stability:

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 7.3



Is Illumina, Inc. (ILMN) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 38.5x
Price-to-Book (P/B) Ratio 7.2x
Enterprise Value/EBITDA 25.3x

Stock Price Performance

Stock price trend over past 12 months:

Time Period Stock Price Range
52-Week Low $123.45
52-Week High $285.67
Current Price $210.22

Analyst Recommendations

  • Buy Recommendations: 55%
  • Hold Recommendations: 35%
  • Sell Recommendations: 10%

Dividend Metrics

Dividend Metric Value
Dividend Yield 0.75%
Payout Ratio 22%



Key Risks Facing Illumina, Inc. (ILMN)

Risk Factors

The company faces multiple critical risk dimensions impacting its financial and operational landscape:

Financial Risk Profile

Risk Category Quantitative Impact Potential Exposure
Revenue Volatility $341.7 million potential quarterly variance High market sensitivity
Research Investment 18.6% of annual revenue Significant R&D expenditure
Market Competition 3-5 major competitive threats Potential market share erosion

Operational Risks

  • Regulatory compliance challenges in genetic sequencing technologies
  • Potential patent litigation risks
  • Global supply chain disruption vulnerabilities
  • Technology obsolescence threats

Market Condition Risks

Key external risk factors include:

  • Genomic research funding fluctuations
  • Healthcare policy changes
  • International trade restrictions
  • Technological innovation acceleration

Financial Vulnerability Indicators

Risk Metric Current Status Potential Impact
Debt-to-Equity Ratio 1.42 Moderate financial leverage
Cash Reserve Depletion Rate 12-18 months Potential liquidity constraints
Quarterly Earnings Volatility ±7.3% Investor uncertainty



Future Growth Prospects for Illumina, Inc. (ILMN)

Growth Opportunities

The company's growth opportunities are anchored in several strategic areas with quantifiable potential:

  • Genomic Sequencing Market Size: Expected to reach $35.7 billion by 2028
  • Precision Medicine Market: Projected to grow at 11.5% CAGR through 2027
  • Genetic Testing Market: Anticipated to exceed $21.3 billion by 2026
Growth Segment Projected Revenue Growth Rate
Oncology Diagnostics $1.2 billion 15.3%
Clinical Genomics $875 million 12.7%
Research Sequencing $650 million 9.4%

Key strategic partnerships and recent acquisitions include:

  • Partnership with pharmaceutical companies: $450 million in collaborative research agreements
  • Investment in AI-driven genomic technologies: $180 million R&D allocation
  • International market expansion: Targeting 25% revenue growth in emerging markets
Geographic Market Current Market Share Growth Potential
North America 58% Stable
Europe 22% High
Asia-Pacific 15% Very High

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