Align Technology Inc (ALGN)

Working capital 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 current assets	US$ in thousands	2,492,440	2,446,620	2,424,390	2,494,080	1,849,540
Total current liabilities	US$ in thousands	2,038,030	2,066,610	1,925,890	1,924,070	1,325,600
Working capital turnover		8.80	10.16	7.49	6.93	4.72

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,999,010K ÷ ($2,492,440K – $2,038,030K)
= 8.80

Align Technology Inc's working capital turnover has shown a consistent upward trend from 2020 to 2024. The ratio increased from 4.72 in December 2020 to 8.80 in December 2024. This indicates that the company is efficiently using its working capital to generate sales revenue. The improvement in the working capital turnover ratio suggests that Align Technology Inc has been able to effectively manage its working capital and optimize its operational efficiency over the years. This trend reflects positively on the company's ability to generate sales from its working capital investment, which is a key indicator of its operational efficiency and financial health.