Align Technology Inc (ALGN)

Number of days of payables

		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
Payables turnover		10.21	11.56	10.22	8.57	8.61	7.94	7.51	5.70	6.21	5.46	3.97	6.19	4.99	5.56	6.66	9.25	7.60	10.05	9.68	8.89
Number of days of payables	days	35.74	31.59	35.71	42.57	42.40	45.95	48.62	64.02	58.81	66.87	91.89	58.94	73.20	65.67	54.84	39.44	48.04	36.33	37.70	41.04

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.21
= 35.74

The number of days of payables for Align Technology, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company took approximately 35.74 days to pay its suppliers, showing a slight increase from the previous quarter. Compared to the same quarter in the previous year, there has been a noticeable improvement in the efficiency of payables management.

Overall, the trend indicates that Align Technology, Inc. has been able to manage its payables effectively and optimize its working capital management. The company has been able to extend the time taken to settle its payables, which could potentially indicate strong supplier relationships and negotiation power. However, it is essential for the company to monitor this ratio continually to ensure it remains at an optimal level and does not negatively impact its relationships with suppliers.