Align Technology Inc (ALGN)

Receivables 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
Receivables	US$ in thousands	1,047,150	904,178	908,395	884,430	1,000,170	859,629	931,854	950,892	897,198	855,037	808,079	718,957	663,112	640,598	494,628	565,180	599,933	561,200	565,619	479,281
Receivables turnover		3.69	4.21	4.11	4.19	3.73	4.50	4.28	4.24	4.41	4.39	4.30	3.92	3.73	3.57	4.37	4.26	4.01	4.08	3.87	4.34

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,862,257K ÷ $1,047,150K
= 3.69

The receivables turnover ratio for Align Technology, Inc. has exhibited some fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 4.28, showing an improvement compared to the previous quarter. This suggests that the company collected its accounts receivable approximately 4.28 times during the quarter.

Looking at the trend over the past year, the receivables turnover ratio has generally been volatile, ranging from a low of 3.57 in Q2 2023 to a high of 4.34 in Q4 2022. This indicates variability in how efficiently the company is managing its receivables and collecting outstanding payments from customers.

Overall, a higher receivables turnover ratio is generally preferable as it implies that the company is collecting payments more quickly. However, it's essential to consider industry norms and company-specific circumstances when evaluating the adequacy of the receivables turnover ratio.