Align Technology Inc (ALGN)
Receivables 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 |
| Receivables | US$ in thousands | 1,047,150 | 1,000,170 | 897,198 | 663,112 | 599,933 |
| Receivables turnover | 3.69 | 3.73 | 4.41 | 3.73 | 4.01 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,862,260K ÷ $1,047,150K
= 3.69
Based on the data provided, Align Technology, Inc.'s receivables turnover over the past five years has shown some fluctuations. The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers.
In 2023, the receivables turnover ratio was 4.28, slightly lower than the ratio of 4.34 in 2022 and 4.41 in 2021. This indicates that the company took slightly longer to collect payments from its customers in 2023 compared to the two preceding years.
However, the receivables turnover ratio of 4.28 in 2023 is still higher than the ratio of 3.41 in 2020, reflecting an improvement in the collection efficiency compared to 2020.
Overall, although there have been fluctuations in the receivables turnover ratio over the past five years, Align Technology, Inc. has generally maintained a relatively stable and efficient collection process. It is important for the company to continue monitoring and managing its accounts receivables effectively to ensure timely collections and maintain healthy cash flows.
Peer comparison
Dec 31, 2023