ILMNNEUTRAL

Return on Equity (ROE)

33.8%

Updated 131h ago

Sector Performance

84th percentile

ILMN

33.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

ILMN's Return on Equity (ROE) of 33.8% means that for every dollar of shareholders' equity, the company generated 33.8 cents in net profit—a measure of how efficiently it uses invested capital.

This is well above the sector median of 13.8%, placing ILMN in the 84th percentile among its peers, indicating top-quartile profitability relative to the industry. The trend data is not available, as the year-over-year change, quarter-over-quarter change, and last eight quarters are all marked N/A—so this is a single-point snapshot with no historical direction to assess momentum. The combination of an exceptionally high ROE with no trend information suggests a strong current efficiency level, but the lack of trajectory makes it unclear whether this performance is sustainable or deteriorating, introducing uncertainty for investors. This high ROE supports the NEUTRAL verdict: it confirms solid capital use, but without trend evidence to confirm stability or improvement, it does not justify an upgrade to bullish or a downgrade to bearish on its own.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ILMN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are ILMN's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.