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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Align Technology Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2023 9.54% = 5.74% × 1.66
Jun 30, 2023 8.63% = 5.11% × 1.69
Mar 31, 2023 9.05% = 5.34% × 1.70
Dec 31, 2022 10.04% = 6.08% × 1.65
Sep 30, 2022 13.82% = 8.64% × 1.60
Jun 30, 2022 17.20% = 10.65% × 1.61
Mar 31, 2022 19.25% = 11.88% × 1.62
Dec 31, 2021 21.31% = 12.99% × 1.64
Sep 30, 2021 21.04% = 13.10% × 1.61
Jun 30, 2021 20.64% = 12.94% × 1.59
Mar 31, 2021 13.50% = 9.04% × 1.49
Dec 31, 2020 54.92% = 36.77% × 1.49
Sep 30, 2020 57.30% = 39.37% × 1.46
Jun 30, 2020 59.80% = 42.26% × 1.42
Mar 31, 2020 66.21% = 47.65% × 1.39
Dec 31, 2019 32.89% = 17.71% × 1.86
Sep 30, 2019 32.09% = 17.82% × 1.80
Jun 30, 2019 30.37% = 17.79% × 1.71
Mar 31, 2019 29.96% = 16.84% × 1.78
Dec 31, 2018 31.94% = 19.50% × 1.64
Sep 30, 2018 — = — × 1.62
Jun 30, 2018 — = — × 1.57
Mar 31, 2018 — = — × 1.58

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Align Technology Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 9.54% = 9.53% × 0.60 × 1.66
Jun 30, 2023 8.63% = 8.40% × 0.61 × 1.69
Mar 31, 2023 9.05% = 8.50% × 0.63 × 1.70
Dec 31, 2022 10.04% = 9.68% × 0.63 × 1.65
Sep 30, 2022 13.82% = 13.22% × 0.65 × 1.60
Jun 30, 2022 17.20% = 15.52% × 0.69 × 1.61
Mar 31, 2022 19.25% = 17.51% × 0.68 × 1.62
Dec 31, 2021 21.31% = 19.53% × 0.67 × 1.64
Sep 30, 2021 21.04% = 19.70% × 0.66 × 1.61
Jun 30, 2021 20.64% = 20.10% × 0.64 × 1.59
Mar 31, 2021 13.50% = 16.27% × 0.56 × 1.49
Dec 31, 2020 54.92% = 71.84% × 0.51 × 1.49
Sep 30, 2020 57.30% = 75.99% × 0.52 × 1.46
Jun 30, 2020 59.80% = 78.75% × 0.54 × 1.42
Mar 31, 2020 66.21% = 78.42% × 0.61 × 1.39
Dec 31, 2019 32.89% = 18.40% × 0.96 × 1.86
Sep 30, 2019 32.09% = 18.28% × 0.97 × 1.80
Jun 30, 2019 30.37% = 19.06% × 0.93 × 1.71
Mar 31, 2019 29.96% = 18.10% × 0.93 × 1.78
Dec 31, 2018 31.94% = 20.35% × 0.96 × 1.64
Sep 30, 2018 — = — × — × 1.62
Jun 30, 2018 — = — × — × 1.57
Mar 31, 2018 — = — × — × 1.58

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Align Technology Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2023 5.74% = 9.53% × 0.60
Jun 30, 2023 5.11% = 8.40% × 0.61
Mar 31, 2023 5.34% = 8.50% × 0.63
Dec 31, 2022 6.08% = 9.68% × 0.63
Sep 30, 2022 8.64% = 13.22% × 0.65
Jun 30, 2022 10.65% = 15.52% × 0.69
Mar 31, 2022 11.88% = 17.51% × 0.68
Dec 31, 2021 12.99% = 19.53% × 0.67
Sep 30, 2021 13.10% = 19.70% × 0.66
Jun 30, 2021 12.94% = 20.10% × 0.64
Mar 31, 2021 9.04% = 16.27% × 0.56
Dec 31, 2020 36.77% = 71.84% × 0.51
Sep 30, 2020 39.37% = 75.99% × 0.52
Jun 30, 2020 42.26% = 78.75% × 0.54
Mar 31, 2020 47.65% = 78.42% × 0.61
Dec 31, 2019 17.71% = 18.40% × 0.96
Sep 30, 2019 17.82% = 18.28% × 0.97
Jun 30, 2019 17.79% = 19.06% × 0.93
Mar 31, 2019 16.84% = 18.10% × 0.93
Dec 31, 2018 19.50% = 20.35% × 0.96
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2023 is the increase in profitability measured by net profit margin ratio.