Analysis of Reportable Segments
Align Technology Inc. operates in 2 segments: Clear Aligner and Imaging Systems and CAD/CAM Services.
Segment Profit Margin
Align Technology Inc., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Clear Aligner | 36.92% | 40.83% | 36.55% | 41.27% | 42.12% |
| Imaging Systems and CAD/CAM Services | 27.15% | 36.73% | 25.93% | 36.14% | 36.00% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Clear Aligner | Clear Aligner segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Imaging Systems and CAD/CAM Services | Imaging Systems and CAD/CAM Services segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment Profit Margin: Clear Aligner
Align Technology Inc.; Clear Aligner; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | 1,134,420) | 1,325,866) | 768,045) | 835,957) | 712,439) |
| Net revenues | 3,072,585) | 3,247,080) | 2,101,459) | 2,025,750) | 1,691,467) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 36.92% | 40.83% | 36.55% | 41.27% | 42.12% |
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
Segment profit margin = 100 × Income from operations ÷ Net revenues
= 100 × 1,134,420 ÷ 3,072,585 = 36.92%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Clear Aligner | Clear Aligner segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment Profit Margin: Imaging Systems and CAD/CAM Services
Align Technology Inc.; Imaging Systems and CAD/CAM Services; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | 179,765) | 259,127) | 96,052) | 137,720) | 98,998) |
| Net revenues | 662,050) | 705,504) | 370,482) | 381,046) | 275,025) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 27.15% | 36.73% | 25.93% | 36.14% | 36.00% |
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
Segment profit margin = 100 × Income from operations ÷ Net revenues
= 100 × 179,765 ÷ 662,050 = 27.15%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Imaging Systems and CAD/CAM Services | Imaging Systems and CAD/CAM Services segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Net revenues
Align Technology Inc., net revenues by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Clear Aligner | 3,072,585) | 3,247,080) | 2,101,459) | 2,025,750) | 1,691,467) |
| Imaging Systems and CAD/CAM Services | 662,050) | 705,504) | 370,482) | 381,046) | 275,025) |
| Total | 3,734,635) | 3,952,584) | 2,471,941) | 2,406,796) | 1,966,492) |
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).
Income from operations
Align Technology Inc., income from operations by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Clear Aligner | 1,134,420) | 1,325,866) | 768,045) | 835,957) | 712,439) |
| Imaging Systems and CAD/CAM Services | 179,765) | 259,127) | 96,052) | 137,720) | 98,998) |
| Unallocated corporate expenses | (671,590) | (608,593) | (476,926) | (431,184) | (344,873) |
| Total | 642,595) | 976,400) | 387,171) | 542,493) | 466,564) |
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).