Align Technology Inc (ALGN)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	1,043,890	1,041,940	761,429	865,805	937,438	1,239,010	951,956	832,383	942,050	1,044,520	877,501	926,119	1,099,370	1,237,820	1,086,360	1,131,700	960,843	615,532	404,359	790,696
Short-term investments	US$ in thousands	0	0	20,682	33,101	35,304	44,792	55,805	51,644	57,534	46,242	22,138	86,749	71,972	—	—	—	0	0	0	0
Total current liabilities	US$ in thousands	2,038,030	2,063,610	2,040,120	2,023,040	2,066,610	2,122,990	2,107,060	2,004,600	1,925,890	1,809,400	1,804,410	1,863,650	1,924,070	1,790,320	1,696,580	1,393,840	1,325,600	1,121,790	941,592	910,686
Cash ratio		0.51	0.50	0.38	0.44	0.47	0.60	0.48	0.44	0.52	0.60	0.50	0.54	0.61	0.69	0.64	0.81	0.72	0.55	0.43	0.87

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,043,890K + $0K) ÷ $2,038,030K
= 0.51

The cash ratio of Align Technology Inc has exhibited fluctuations over the periods provided. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, ranged from a low of 0.38 on June 30, 2024, to a high of 0.87 on March 31, 2020. The ratio improved from June 30, 2020, to March 31, 2022, showing an increasing trend reaching a peak on March 31, 2022, at 0.54. It then declined slightly before increasing again by September 30, 2022. The cash ratio stood at 0.51 on December 31, 2024, indicating the company had $0.51 in cash and cash equivalents for every dollar of current liabilities by the end of the period. The trend in the cash ratio reflects Align Technology Inc's ability to manage its liquidity position effectively over the given periods.