Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Align Technology Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Align Technology Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Align Technology Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Align Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Align Technology Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Align Technology Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Align Technology Inc., gross profit margin 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) | ||||||
| Gross profit | 2,633,775) | 2,935,355) | 1,763,235) | 1,743,897) | 1,447,867) | |
| Net revenues | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 70.52% | 74.26% | 71.33% | 72.46% | 73.63% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 51.54% | 52.21% | 50.49% | 52.46% | — | |
| Cigna Group | 12.44% | 12.41% | 14.43% | 15.57% | — | |
| CVS Health Corp. | 16.62% | 17.48% | 18.01% | 17.41% | — | |
| Elevance Health Inc. | 16.79% | 17.09% | 19.71% | 18.77% | — | |
| Intuitive Surgical Inc. | 67.44% | 69.32% | 65.65% | 69.45% | — | |
| Medtronic PLC | 67.98% | 65.19% | 67.41% | 70.04% | — | |
| UnitedHealth Group Inc. | 24.09% | 23.60% | 25.62% | 23.19% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 2,633,775 ÷ 3,734,635 = 70.52%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Align Technology Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Operating Profit Margin
Align Technology Inc., operating profit margin 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) | ||||||
| Income from operations | 642,595) | 976,400) | 387,171) | 542,493) | 466,564) | |
| Net revenues | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 17.21% | 24.70% | 15.66% | 22.54% | 23.73% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 19.16% | 19.56% | 15.48% | 14.21% | — | |
| Cigna Group | 4.69% | 4.60% | 5.12% | 5.31% | — | |
| CVS Health Corp. | 2.41% | 4.54% | 5.19% | 4.69% | — | |
| Elevance Health Inc. | 4.94% | 5.15% | 4.97% | 5.49% | — | |
| Intuitive Surgical Inc. | 25.35% | 31.89% | 24.09% | 30.69% | — | |
| Medtronic PLC | 18.15% | 14.89% | 16.57% | 20.51% | — | |
| UnitedHealth Group Inc. | 8.83% | 8.40% | 8.76% | 8.19% | — | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.41% | 6.93% | 7.08% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 13.83% | 13.72% | 10.76% | — | — | |
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
Operating profit margin = 100 × Income from operations ÷ Net revenues
= 100 × 642,595 ÷ 3,734,635 = 17.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Align Technology Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Net Profit Margin
Align Technology Inc., net profit margin 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 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 15.88% | 16.42% | 12.99% | 11.56% | — | |
| Cigna Group | 3.72% | 3.11% | 5.31% | 3.35% | — | |
| CVS Health Corp. | 1.29% | 2.72% | 2.68% | 2.59% | — | |
| Elevance Health Inc. | 3.87% | 4.46% | 3.78% | 4.66% | — | |
| Intuitive Surgical Inc. | 21.25% | 29.85% | 24.33% | 30.80% | — | |
| Medtronic PLC | 15.90% | 11.97% | 16.56% | 15.16% | — | |
| UnitedHealth Group Inc. | 6.25% | 6.06% | 6.03% | 5.76% | — | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 4.74% | 5.08% | 5.27% | — | — | |
| Net Profit Margin, Industry | ||||||
| Health Care | 10.74% | 11.33% | 8.06% | — | — | |
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
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 361,573 ÷ 3,734,635 = 9.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Align Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Align Technology Inc., ROE 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 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 18.90% | 19.75% | 13.71% | 11.86% | — | |
| Cigna Group | 14.86% | 11.39% | 16.81% | 11.26% | — | |
| CVS Health Corp. | 5.84% | 10.54% | 10.35% | 10.39% | — | |
| Elevance Health Inc. | 16.59% | 16.93% | 13.77% | 15.15% | — | |
| Intuitive Surgical Inc. | 11.98% | 14.32% | 10.90% | 16.69% | — | |
| Medtronic PLC | 9.59% | 7.01% | 9.44% | 9.25% | — | |
| UnitedHealth Group Inc. | 25.87% | 24.09% | 23.52% | 24.02% | — | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 15.22% | 14.90% | 14.75% | — | — | |
| ROE, Industry | ||||||
| Health Care | 22.47% | 22.98% | 16.02% | — | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Align Technology Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Align Technology Inc., ROA 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 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 9.31% | 9.40% | 6.20% | 5.43% | — | |
| Cigna Group | 4.63% | 3.46% | 5.44% | 3.28% | — | |
| CVS Health Corp. | 1.82% | 3.39% | 3.11% | 2.98% | — | |
| Elevance Health Inc. | 5.86% | 6.26% | 5.28% | 6.21% | — | |
| Intuitive Surgical Inc. | 10.19% | 12.58% | 9.50% | 14.17% | — | |
| Medtronic PLC | 5.54% | 3.87% | 5.28% | 5.16% | — | |
| UnitedHealth Group Inc. | 8.19% | 8.15% | 7.81% | 7.96% | — | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 5.59% | 5.58% | 5.44% | — | — | |
| ROA, Industry | ||||||
| Health Care | 8.43% | 8.29% | 5.45% | — | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Align Technology Inc. ROA deteriorated from 2020 to 2021 and from 2021 to 2022. |