Align Technology Inc (ALGN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,862,257	3,807,046	3,737,180	3,704,563	3,734,635	3,864,220	3,989,782	4,031,039	3,952,591	3,756,011	3,474,245	2,815,749	2,471,941	2,287,208	2,160,405	2,408,788	2,406,796	2,291,029	2,188,977	2,078,539
Property, plant and equipment	US$ in thousands	1,290,860	1,268,390	1,279,040	1,262,820	1,231,860	1,199,880	1,182,440	1,140,920	1,081,930	1,002,770	960,852	763,870	734,721	703,657	668,951	663,491	631,730	606,581	599,611	575,267
Fixed asset turnover		2.99	3.00	2.92	2.93	3.03	3.22	3.37	3.53	3.65	3.75	3.62	3.69	3.36	3.25	3.23	3.63	3.81	3.78	3.65	3.61

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,862,257K ÷ $1,290,860K
= 2.99

Align Technology, Inc.'s fixed asset turnover has shown a declining trend over the past four quarters. The fixed asset turnover ratio decreased from 3.53 in Q1 2022 to 2.99 in Q4 2023. This indicates that the company is generating less revenue for each dollar invested in fixed assets.

The decreasing trend in fixed asset turnover may suggest that Align Technology, Inc. is not efficiently utilizing its fixed assets to generate sales. A lower fixed asset turnover ratio can be a sign of underutilization or inefficient management of fixed assets.

It is important for the company to closely monitor and analyze the reasons behind this decline in fixed asset turnover. This analysis can help management identify inefficiencies in asset utilization and take appropriate actions to improve productivity and profitability.