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Illumina Altman Z-Score

: 4.50 (As of Today)
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Good Sign:

Altman Z-score of 4.72 is strong.

Illumina has a Altman Z-Score of 4.50, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Illumina's Altman Z-Score or its related term are showing as below:

ILMN' s Altman Z-Score Range Over the Past 10 Years
Min: 0.93   Med: 8.81   Max: 107.82
Current: 4.72

During the past 13 years, Illumina's highest Altman Z-Score was 107.82. The lowest was 0.93. And the median was 8.81.


Illumina Altman Z-Score Historical Data

The historical data trend for Illumina's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Illumina Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.00 10.51 13.24 13.42 9.14

Illumina Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.19 9.71 9.14 8.64 4.25

Competitive Comparison

For the Diagnostics & Research subindustry, Illumina's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Illumina's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Illumina's Altman Z-Score falls into.



Illumina Altman Z-Score Calculation

Altman 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.

Illumina's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0006+1.4*0.3299+3.3*0.0031+0.6*6.2118+1.0*0.3037
=4.50

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $15,448 Mil.
Total Current Assets was $2,891 Mil.
Total Current Liabilities was $2,881 Mil.
Retained Earnings was $5,097 Mil.
Pre-Tax Income was -637 + 140 + 86 + 420 = $9 Mil.
Interest Expense was -6 + -6 + -13 + -14 = $-39 Mil.
Revenue was 1162 + 1223 + 1199 + 1108 = $4,692 Mil.
Market Cap (Today) was $31,084 Mil.
Total Liabilities was $5,004 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2891 - 2881)/15448
=0.0006

X2=Retained Earnings/Total Assets
=5097/15448
=0.3299

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(9 - -39)/15448
=0.0031

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=31084.050/5004
=6.2118

X5=Revenue/Total Assets
=4692/15448
=0.3037

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Illumina has a Altman Z-Score of 4.50 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Illumina  (NAS:ILMN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Illumina Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Illumina's Altman Z-Score 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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