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Illumina Financial Strength

: 6 (As of Mar. 2022)
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Illumina has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Illumina's Interest Coverage for the quarter that ended in Mar. 2022 was 30.67. Illumina's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.53. As of today, Illumina's Altman Z-Score is 6.01.


Competitive Comparison

For the Diagnostics & Research subindustry, Illumina's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Illumina Financial Strength Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Illumina's Financial Strength distribution charts can be found below:

* The bar in red indicates where Illumina's Financial Strength falls into.



Illumina Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Illumina's Interest Expense for the months ended in Mar. 2022 was $-6 Mil. Its Operating Income for the months ended in Mar. 2022 was $184 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $2,044 Mil.

Illumina's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*184/-6
=30.67

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Illumina's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(571 + 2044) / 4892
=0.53

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Illumina has a Z-score of 6.01, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.01 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Illumina  (NAS:ILMN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Illumina has the Financial Strength Rank of 6.


Illumina Financial Strength Related Terms

Thank you for viewing the detailed overview of Illumina's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Illumina Business Description

Illumina logo
Address
5200 Illumina Way, San Diego, CA, USA, 92122
Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates revenue from sequencing tools and dedicated consumables (76% of 2020 sales). Illumina's high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (9% of sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications. Services account for 16% of sales and include basic maintenance services, clinical lab applications (such as noninvasive prenatal, oncology, and rare-disease screening), and whole genome sequencing.
Executives
Frank John Edward officer: Chief Public Affairs Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Rollins Carissa officer: SVP, Chief Information Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Pegels Kevin Carl officer: Chief of Global Operations 5200 ILLUMINA WAY SAN DIEGO CA 92122
Torres Jose officer: VP, Chief Accounting Officer 1300 W. 120TH AVENUE WESTMINSTER CO 80234
Reeves Kathryne Gambrell officer: SVP, Chief Marketing Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Aravanis Alexander officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Gottlieb Scott director MOLECULAR INSIGHT PHARMACEUTICALS 160 SECOND STREET CAMBRIDGE MA 02142
Febbo Phillip G. officer: SVP Chief Medical Officer C/O GENOMIC HEALTH, INC. 301 PENOBSCOT DRIVE REDWOOD CITY CA 94063
Tousi Susan H officer: SVP Product Development 5200 ILLUMINA WAY SAN DIEGO CA 92122
Goswami Joydeep officer: SVP Corp Business Development SUMITOMO FUDOSAN MITA TWIN BLDG EAST WING 4-2-8 SHIBAURA MINATO-KU TOKYO M0 1080023
Siegel Susan E director 3000 SAND HILL ROAD BLDG 3 STE 290 MENLO PARK CA 94025
Ragusa Robert P officer: SVP, Global Quality & Ops
Hoyt Aimee L officer: SVP, Chief People Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Guthart Gary S director C/O INTUITIVE SURGICAL INC 1266 KIFER RD SUNNYVALE CA 94086
Mcginnis Karen K officer: VP, Chief Accounting Officer INSIGHT ENTERPRISES INC 1305 WEST AUTO DRIVE TEMPE AZ 85284

Illumina Headlines

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