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ILMN (Illumina) Gross Margin % : 64.84% (As of Jun. 2024)


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What is Illumina Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Illumina's Gross Profit for the three months ended in Jun. 2024 was $721 Mil. Illumina's Revenue for the three months ended in Jun. 2024 was $1,112 Mil. Therefore, Illumina's Gross Margin % for the quarter that ended in Jun. 2024 was 64.84%.

Warning Sign:

Illumina Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.


The historical rank and industry rank for Illumina's Gross Margin % or its related term are showing as below:

ILMN' s Gross Margin % Range Over the Past 10 Years
Min: 60.92   Med: 69.24   Max: 69.77
Current: 62


During the past 13 years, the highest Gross Margin % of Illumina was 69.77%. The lowest was 60.92%. And the median was 69.24%.

ILMN's Gross Margin % is ranked better than
68.97% of 203 companies
in the Medical Diagnostics & Research industry
Industry Median: 47.88 vs ILMN: 62.00

Illumina had a gross margin of 64.84% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Illumina was -2.30% per year.


Illumina Gross Margin % Historical Data

The historical data trend for Illumina's Gross Margin % 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 Gross Margin % Chart

Illumina Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.63 68.01 69.69 64.83 60.92

Illumina Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial 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 62.24 61.13 60.07 61.99 64.84

Competitive Comparison of Illumina's Gross Margin %

For the Diagnostics & Research subindustry, Illumina's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Medical Diagnostics & Research Industry

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

* The bar in red indicates where Illumina's Gross Margin % falls into.



Illumina Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Illumina's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2744 / 4504
=(Revenue - Cost of Goods Sold) / Revenue
=(4504 - 1760) / 4504
=60.92 %

Illumina's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=721 / 1112
=(Revenue - Cost of Goods Sold) / Revenue
=(1112 - 391) / 1112
=64.84 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Illumina  (NAS:ILMN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Illumina had a gross margin of 64.84% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Illumina Gross Margin % Related Terms

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


Illumina Business Description

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 over 90% of its revenue from sequencing instruments, consumables, and services. 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 2023 sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications.
Executives
Jacob Thaysen director, officer: Chief Executive Officer 5301 STEVENS CREEK BLVD., SANTA CLARA CA 95051
Aimee L Hoyt officer: SVP, Chief People Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Susan H Tousi officer: SVP Product Development 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Steven Barnard officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Scott B. Ullem director C/O EDWARDS LIFESCIENCES CORPORATION, ONE EDWARDS WAY, IRVINE CA 92614
Stephen P Macmillan director 250 CAMPUS DRIVE, MARLBOROUGH MA 01752
Andrew Teno director C/O FIR TREE INC., 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036
Alexander Aravanis officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Scott D Ericksen officer: VP, Chief Accounting Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Charles Dadswell officer: Sr VP & General Counsel 5200 ILLUMINA WAY, SAN DIEGO CA 92122
John Edward Frank officer: Chief Public Affairs Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Phillip G. Febbo officer: SVP Chief Medical Officer C/O GENOMIC HEALTH, INC., 301 PENOBSCOT DRIVE, REDWOOD CITY CA 94063
Carissa Rollins officer: SVP, Chief Information Officer 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Kevin Carl Pegels officer: Chief of Global Operations 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Jay T Flatley officer: President & CEO 9885 TOWNE CENTRE DR, SAN DIEGO CA 92121