Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Align Technology Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Align Technology Inc. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Align Technology Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Align Technology Inc. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Align Technology Inc. equity turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Net Fixed Asset Turnover
Align Technology Inc., net fixed asset turnover 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) | ||||||
| Net revenues | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) | |
| Property, plant and equipment, net | 1,231,855) | 1,081,926) | 734,721) | 631,730) | 521,329) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.03 | 3.65 | 3.36 | 3.81 | 3.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.76 | 4.81 | 3.83 | 3.97 | — | |
| Cigna Group | 47.53 | 46.73 | 37.85 | 34.45 | — | |
| CVS Health Corp. | 24.98 | 22.56 | 21.25 | 21.24 | — | |
| Elevance Health Inc. | 36.07 | 34.94 | 34.69 | 32.92 | — | |
| Humana Inc. | 28.71 | 26.97 | 32.05 | 32.93 | — | |
| Intuitive Surgical Inc. | 2.62 | 3.04 | 2.76 | 3.52 | — | |
| Medtronic PLC | 5.85 | 5.77 | 5.99 | 6.54 | — | |
| UnitedHealth Group Inc. | 31.81 | 31.81 | 29.64 | 27.60 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 22.49 | 21.55 | 20.28 | 19.95 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 10.62 | 10.44 | 9.62 | 9.73 | — | |
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 fixed asset turnover = Net revenues ÷ Property, plant and equipment, net
= 3,734,635 ÷ 1,231,855 = 3.03
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Align Technology Inc. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Align Technology Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Net revenues | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) | |
| Property, plant and equipment, net | 1,231,855) | 1,081,926) | 734,721) | 631,730) | 521,329) | |
| Operating lease right-of-use assets, net | 118,880) | 121,257) | 82,553) | 56,244) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 1,350,735) | 1,203,183) | 817,274) | 687,974) | 521,329) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.76 | 3.29 | 3.02 | 3.50 | 3.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 4.25 | 4.26 | 3.42 | 3.56 | — | |
| Cigna Group | 43.23 | 41.37 | 33.46 | 30.72 | — | |
| CVS Health Corp. | 10.46 | 9.09 | 8.04 | 7.77 | — | |
| Elevance Health Inc. | 31.64 | 30.12 | 29.26 | 27.82 | — | |
| Humana Inc. | 24.76 | 22.09 | 27.07 | 27.22 | — | |
| Intuitive Surgical Inc. | 2.53 | 2.93 | 2.66 | 3.32 | — | |
| Medtronic PLC | 5.06 | 4.84 | 5.02 | 6.54 | — | |
| UnitedHealth Group Inc. | 21.54 | 21.54 | 19.55 | 18.97 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 14.87 | 13.78 | 12.53 | 12.33 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 8.57 | 8.28 | 7.55 | 7.63 | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 3,734,635 ÷ 1,350,735 = 2.76
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Align Technology Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Total Asset Turnover
Align Technology Inc., total asset turnover 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) | ||||||
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.63 | 0.67 | 0.51 | 0.96 | 0.96 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.59 | 0.57 | 0.48 | 0.47 | — | |
| Cigna Group | 1.25 | 1.11 | 1.02 | 0.98 | — | |
| CVS Health Corp. | 1.41 | 1.25 | 1.16 | 1.15 | — | |
| Elevance Health Inc. | 1.51 | 1.41 | 1.39 | 1.33 | — | |
| Humana Inc. | 2.15 | 1.87 | 2.17 | 2.21 | — | |
| Intuitive Surgical Inc. | 0.48 | 0.42 | 0.39 | 0.46 | — | |
| Medtronic PLC | 0.35 | 0.32 | 0.32 | 0.34 | — | |
| UnitedHealth Group Inc. | 1.31 | 1.34 | 1.30 | 1.38 | — | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.22 | 1.13 | 1.08 | 1.07 | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.81 | 0.76 | 0.70 | 0.71 | — | |
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 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Align Technology Inc. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Equity Turnover
Align Technology Inc., equity turnover 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) | ||||||
| Net revenues | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) | |
| Stockholders’ equity | 3,601,358) | 3,622,714) | 3,233,865) | 1,346,169) | 1,252,891) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.04 | 1.09 | 0.76 | 1.79 | 1.57 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 1.19 | 1.20 | 1.06 | 1.03 | — | |
| Cigna Group | 4.00 | 3.66 | 3.16 | 3.36 | — | |
| CVS Health Corp. | 4.53 | 3.87 | 3.86 | 4.00 | — | |
| Elevance Health Inc. | 4.29 | 3.80 | 3.64 | 3.25 | — | |
| Humana Inc. | 6.04 | 5.15 | 5.54 | 5.35 | — | |
| Intuitive Surgical Inc. | 0.56 | 0.48 | 0.45 | 0.54 | — | |
| Medtronic PLC | 0.60 | 0.59 | 0.57 | 0.61 | — | |
| UnitedHealth Group Inc. | 4.14 | 3.98 | 3.90 | 4.17 | — | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 3.34 | 3.03 | 2.91 | 2.94 | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 2.17 | 2.10 | 2.07 | 2.07 | — | |
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
Equity turnover = Net revenues ÷ Stockholders’ equity
= 3,734,635 ÷ 3,601,358 = 1.04
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Align Technology Inc. equity turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |