Align Technology Inc (ALGN)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,155,397	1,152,009	1,126,050	1,119,480	1,100,860	1,103,582	1,093,153	1,063,429	1,017,229	954,750	894,056	769,772	708,706	662,478	632,209	672,631	662,899	635,994	599,715	555,984
Inventory	US$ in thousands	296,902	296,189	312,736	311,885	338,752	320,903	310,046	275,669	230,230	207,116	178,751	150,643	139,237	123,093	131,276	120,977	112,051	94,795	81,124	68,489
Inventory turnover		3.89	3.89	3.60	3.59	3.25	3.44	3.53	3.86	4.42	4.61	5.00	5.11	5.09	5.38	4.82	5.56	5.92	6.71	7.39	8.12

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,155,397K ÷ $296,902K
= 3.89

Align Technology, Inc.'s inventory turnover has shown some fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the company achieved an inventory turnover of 3.89, indicating that the company, on average, sold and replaced its inventory approximately 3.89 times during the quarter. This was consistent with Q3 2022 when the turnover was also 3.89. However, in Q2 2023 and Q1 2023, the inventory turnover decreased slightly to 3.60 and 3.59, respectively.

Comparing the recent quarters to Q4 2022 when the inventory turnover was 3.25, it appears that the company has improved its efficiency in managing inventory. The highest turnover in the past eight quarters was seen in Q1 2022 at 3.86.

Overall, the trend in inventory turnover for Align Technology, Inc. indicates relatively consistent performance in managing its inventory levels efficiently. Maintaining a healthy inventory turnover ratio is crucial for ensuring optimal utilization of resources and effective management of working capital.