Align Technology Inc (ALGN)

Working capital 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
Total current assets	US$ in thousands	2,446,620	2,424,390	2,494,080	1,849,540	1,633,420
Total current liabilities	US$ in thousands	2,066,610	1,925,890	1,924,070	1,325,600	970,970
Working capital turnover		10.16	7.49	6.93	4.72	3.63

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,862,260K ÷ ($2,446,620K – $2,066,610K)
= 10.16

Align Technology, Inc. has shown a steady increase in working capital turnover over the past five years, with the ratio increasing from 3.63 in 2019 to 10.16 in 2023. This indicates that the company has been more efficient in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operational activities and sales growth. The trend indicates an improvement in the company's liquidity and efficiency over the years, reflecting positively on its financial management practices. The increasing trend in working capital turnover ratio is a good sign that the company is operating more efficiently and effectively utilizing its resources to drive revenue growth.