Align Technology Inc (ALGN)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,999,010 | 3,862,260 | 3,734,640 | 3,952,580 | 2,471,940 |
| Total assets | US$ in thousands | 6,214,600 | 6,083,880 | 5,947,950 | 5,942,110 | 4,829,680 |
| Total asset turnover | 0.64 | 0.63 | 0.63 | 0.67 | 0.51 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,999,010K ÷ $6,214,600K
= 0.64
Align Technology Inc's total asset turnover has been relatively stable over the last five years, ranging from 0.51 in December 31, 2020 to 0.64 in December 31, 2024. This indicates that the company is generating around $0.51 to $0.64 in revenue for every dollar of total assets it holds.
The increasing trend from 2020 to 2021 suggests that Align Technology Inc has been utilizing its assets more efficiently to generate sales. However, the subsequent decrease in 2022 followed by stability in the following years could indicate a potential slowdown in asset utilization efficiency or changes in the company's operating environment.
Overall, the total asset turnover ratio provides insights into how well the company is using its assets to generate revenue and may indicate potential areas for improvement in operational efficiency or asset management strategies.
Peer comparison
Dec 31, 2024