Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Align Technology Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.30 | 1.40 | 1.68 | 1.88 | |
| Quick ratio | 0.97 | 1.08 | 1.22 | 1.46 | 1.70 | |
| Cash ratio | 0.52 | 0.61 | 0.72 | 0.89 | 1.06 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Align Technology Inc. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Align Technology Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Align Technology Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Current Ratio
Align Technology Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.63 | 1.85 | 1.72 | 1.44 | — | |
| Cigna Group | 0.73 | 0.83 | 0.77 | 0.74 | — | |
| CVS Health Corp. | 0.94 | 0.88 | 0.91 | 0.94 | — | |
| Elevance Health Inc. | 1.40 | 1.47 | 1.55 | 1.65 | — | |
| Humana Inc. | 1.52 | 1.62 | 1.77 | 1.82 | — | |
| Intuitive Surgical Inc. | 4.40 | 5.08 | 6.86 | 4.53 | — | |
| Medtronic PLC | 1.86 | 2.65 | 2.13 | 2.59 | — | |
| UnitedHealth Group Inc. | 0.77 | 0.79 | 0.74 | 0.69 | — | |
| Current Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.05 | 1.09 | 1.08 | 1.07 | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.15 | 1.20 | 1.20 | 1.33 | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Align Technology Inc. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Align Technology Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 942,050) | 1,099,370) | 960,843) | 550,425) | 636,899) | |
| Marketable securities, short-term | 57,534) | 71,972) | —) | 318,202) | 98,460) | |
| Accounts receivable, net of allowance for doubtful accounts | 859,685) | 897,198) | 657,704) | 550,291) | 439,009) | |
| Total quick assets | 1,859,269) | 2,068,540) | 1,618,547) | 1,418,918) | 1,174,368) | |
| Current liabilities | 1,925,887) | 1,924,071) | 1,325,601) | 970,970) | 692,073) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.97 | 1.08 | 1.22 | 1.46 | 1.70 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.06 | 1.28 | 1.14 | 0.88 | — | |
| Cigna Group | 0.58 | 0.48 | 0.66 | 0.41 | — | |
| CVS Health Corp. | 0.62 | 0.55 | 0.53 | 0.52 | — | |
| Elevance Health Inc. | 1.27 | 1.33 | 1.42 | 1.52 | — | |
| Humana Inc. | 1.20 | 1.20 | 1.37 | 1.47 | — | |
| Intuitive Surgical Inc. | 3.56 | 4.34 | 5.96 | 3.75 | — | |
| Medtronic PLC | 1.30 | 1.91 | 1.50 | 1.90 | — | |
| UnitedHealth Group Inc. | 0.70 | 0.72 | 0.68 | 0.63 | — | |
| Quick Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.83 | 0.83 | 0.85 | 0.78 | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.85 | 0.88 | 0.89 | 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
Quick ratio = Total quick assets ÷ Current liabilities
= 1,859,269 ÷ 1,925,887 = 0.97
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Align Technology Inc. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Align Technology Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 942,050) | 1,099,370) | 960,843) | 550,425) | 636,899) | |
| Marketable securities, short-term | 57,534) | 71,972) | —) | 318,202) | 98,460) | |
| Total cash assets | 999,584) | 1,171,342) | 960,843) | 868,627) | 735,359) | |
| Current liabilities | 1,925,887) | 1,924,071) | 1,325,601) | 970,970) | 692,073) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.52 | 0.61 | 0.72 | 0.89 | 1.06 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.66 | 0.78 | 0.60 | 0.38 | — | |
| Cigna Group | 0.17 | 0.14 | 0.32 | 0.14 | — | |
| CVS Health Corp. | 0.23 | 0.18 | 0.18 | 0.15 | — | |
| Elevance Health Inc. | 0.86 | 0.95 | 1.04 | 1.08 | — | |
| Humana Inc. | 1.10 | 1.08 | 1.29 | 1.37 | — | |
| Intuitive Surgical Inc. | 2.90 | 3.66 | 5.30 | 3.13 | — | |
| Medtronic PLC | 0.85 | 1.27 | 1.06 | 1.16 | — | |
| UnitedHealth Group Inc. | 0.36 | 0.36 | 0.33 | 0.28 | — | |
| Cash Ratio, Sector | ||||||
| Health Care Equipment & Services | 0.46 | 0.46 | 0.50 | 0.42 | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.47 | 0.51 | 0.52 | 0.63 | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 999,584 ÷ 1,925,887 = 0.52
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Align Technology Inc. cash ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |