Stock Analysis on Net
Stock Analysis on Net

Align Technology Inc. (NASDAQ:ALGN)

This company has been moved to the archive! The financial data has not been updated since November 3, 2023.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Align Technology Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Activity Ratio
Total Asset Turnover
Reported 0.63 0.67 0.51 0.96 0.96
Adjusted 0.90 1.00 0.83 1.06 1.00
Liquidity Ratio
Current Ratio
Reported 1.26 1.30 1.40 1.68 1.88
Adjusted 4.31 3.32 3.48 4.14 4.49
Solvency Ratios
Debt to Equity
Reported 0.00 0.00 0.00 0.00 0.00
Adjusted 0.04 0.04 0.03 0.03 0.07
Debt to Capital
Reported 0.00 0.00 0.00 0.00 0.00
Adjusted 0.03 0.04 0.03 0.03 0.06
Financial Leverage
Reported 1.65 1.64 1.49 1.86 1.64
Adjusted 1.22 1.29 1.27 1.29 1.30
Profitability Ratios
Net Profit Margin
Reported 9.68% 19.53% 71.84% 18.40% 20.35%
Adjusted 13.24% 27.18% 21.22% 24.63% 24.88%
Return on Equity (ROE)
Reported 10.04% 21.31% 54.92% 32.89% 31.94%
Adjusted 14.55% 34.84% 22.31% 33.65% 32.52%
Return on Assets (ROA)
Reported 6.08% 12.99% 36.77% 17.71% 19.50%
Adjusted 11.92% 27.08% 17.51% 26.16% 24.97%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Align Technology Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Align Technology Inc. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Align Technology Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Align Technology Inc. adjusted debt-to-capital ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Align Technology Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Align Technology Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Align Technology Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Align Technology Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Align Technology Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Net revenues 3,734,635 3,952,584 2,471,941 2,406,796 1,966,492
Total assets 5,947,947 5,942,110 4,829,683 2,500,702 2,052,458
Activity Ratio
Total asset turnover1 0.63 0.67 0.51 0.96 0.96
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net revenues2 3,949,386 4,401,700 2,713,114 2,595,872 2,104,380
Adjusted total assets3 4,386,544 4,417,588 3,287,091 2,443,451 2,096,823
Activity Ratio
Adjusted total asset turnover4 0.90 1.00 0.83 1.06 1.00

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 3,734,635 ÷ 5,947,947 = 0.63

2 Adjusted net revenues. See details »

3 Adjusted total assets. See details »

4 2022 Calculation
Adjusted total asset turnover = Adjusted net revenues ÷ Adjusted total assets
= 3,949,386 ÷ 4,386,544 = 0.90

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Align Technology Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Current assets 2,424,391 2,494,075 1,849,538 1,633,419 1,302,479
Current liabilities 1,925,887 1,924,071 1,325,601 970,970 692,073
Liquidity Ratio
Current ratio1 1.26 1.30 1.40 1.68 1.88
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets2 2,434,734 2,503,320 1,859,777 1,640,175 1,304,857
Adjusted current liabilities3 564,371 755,032 535,099 396,003 290,384
Liquidity Ratio
Adjusted current ratio4 4.31 3.32 3.48 4.14 4.49

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,424,391 ÷ 1,925,887 = 1.26

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2022 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 2,434,734 ÷ 564,371 = 4.31

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Align Technology Inc. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total debt — — — — —
Stockholders’ equity 3,601,358 3,622,714 3,233,865 1,346,169 1,252,891
Solvency Ratio
Debt to equity1 0.00 0.00 0.00 0.00 0.00
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 126,908 125,375 86,180 59,200 106,676
Adjusted stockholders’ equity3 3,591,999 3,434,539 2,580,017 1,899,478 1,609,786
Solvency Ratio
Adjusted debt to equity4 0.04 0.04 0.03 0.03 0.07

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 3,601,358 = 0.00

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 126,908 ÷ 3,591,999 = 0.04

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Align Technology Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total debt — — — — —
Total capital 3,601,358 3,622,714 3,233,865 1,346,169 1,252,891
Solvency Ratio
Debt to capital1 0.00 0.00 0.00 0.00 0.00
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 126,908 125,375 86,180 59,200 106,676
Adjusted total capital3 3,718,907 3,559,914 2,666,197 1,958,678 1,716,462
Solvency Ratio
Adjusted debt to capital4 0.03 0.04 0.03 0.03 0.06

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 3,601,358 = 0.00

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 126,908 ÷ 3,718,907 = 0.03

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Align Technology Inc. adjusted debt-to-capital ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total assets 5,947,947 5,942,110 4,829,683 2,500,702 2,052,458
Stockholders’ equity 3,601,358 3,622,714 3,233,865 1,346,169 1,252,891
Solvency Ratio
Financial leverage1 1.65 1.64 1.49 1.86 1.64
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 4,386,544 4,417,588 3,287,091 2,443,451 2,096,823
Adjusted stockholders’ equity3 3,591,999 3,434,539 2,580,017 1,899,478 1,609,786
Solvency Ratio
Adjusted financial leverage4 1.22 1.29 1.27 1.29 1.30

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 5,947,947 ÷ 3,601,358 = 1.65

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 4,386,544 ÷ 3,591,999 = 1.22

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Align Technology Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Net income 361,573 772,020 1,775,888 442,776 400,235
Net revenues 3,734,635 3,952,584 2,471,941 2,406,796 1,966,492
Profitability Ratio
Net profit margin1 9.68% 19.53% 71.84% 18.40% 20.35%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 522,792 1,196,495 575,652 639,256 523,578
Adjusted net revenues3 3,949,386 4,401,700 2,713,114 2,595,872 2,104,380
Profitability Ratio
Adjusted net profit margin4 13.24% 27.18% 21.22% 24.63% 24.88%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 361,573 ÷ 3,734,635 = 9.68%

2 Adjusted net income. See details »

3 Adjusted net revenues. See details »

4 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net revenues
= 100 × 522,792 ÷ 3,949,386 = 13.24%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Align Technology Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Net income 361,573 772,020 1,775,888 442,776 400,235
Stockholders’ equity 3,601,358 3,622,714 3,233,865 1,346,169 1,252,891
Profitability Ratio
ROE1 10.04% 21.31% 54.92% 32.89% 31.94%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 522,792 1,196,495 575,652 639,256 523,578
Adjusted stockholders’ equity3 3,591,999 3,434,539 2,580,017 1,899,478 1,609,786
Profitability Ratio
Adjusted ROE4 14.55% 34.84% 22.31% 33.65% 32.52%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 361,573 ÷ 3,601,358 = 10.04%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2022 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 522,792 ÷ 3,591,999 = 14.55%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Align Technology Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Net income 361,573 772,020 1,775,888 442,776 400,235
Total assets 5,947,947 5,942,110 4,829,683 2,500,702 2,052,458
Profitability Ratio
ROA1 6.08% 12.99% 36.77% 17.71% 19.50%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 522,792 1,196,495 575,652 639,256 523,578
Adjusted total assets3 4,386,544 4,417,588 3,287,091 2,443,451 2,096,823
Profitability Ratio
Adjusted ROA4 11.92% 27.08% 17.51% 26.16% 24.97%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 361,573 ÷ 5,947,947 = 6.08%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2022 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 522,792 ÷ 4,386,544 = 11.92%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Align Technology Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.