Align Technology Inc (ALGN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,862,260 | 3,734,640 | 3,952,580 | 2,471,940 | 2,406,800 |
| Property, plant and equipment | US$ in thousands | 1,290,860 | 1,231,860 | 1,081,930 | 734,721 | 631,730 |
| Fixed asset turnover | 2.99 | 3.03 | 3.65 | 3.36 | 3.81 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,862,260K ÷ $1,290,860K
= 2.99
Align Technology, Inc.'s fixed asset turnover ratio has shown a decreasing trend over the past five years, from 3.81 in 2019 to 2.99 in 2023. This indicates that the company is generating less revenue relative to its investment in fixed assets. The declining trend may suggest potential inefficiencies in the utilization of the company's fixed assets to generate sales. Further analysis is necessary to understand the reasons behind this trend and to evaluate the effectiveness of Align Technology's asset management strategies.
Peer comparison
Dec 31, 2023
Company name
Symbol
Fixed asset turnover
Align Technology Inc
ALGN
2.99
Avanos Medical Inc
AVNS
5.01
Edwards Lifesciences Corp
EW
3.43
Intuitive Surgical Inc
ISRG
2.15
MSA Safety
MSA
8.44
STERIS plc
STE
2.91
Zimmer Biomet Holdings Inc
ZBH
3.48