Align Technology Inc (ALGN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	550,425	490,362	423,500	588,001
Short-term investments	US$ in thousands	35,304	44,792	55,805	51,644	57,534	46,242	22,138	86,749	71,972	—	—	—	—	—	—	—	636,404	297,898	303,309	144,540
Total current liabilities	US$ in thousands	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	970,970	870,144	789,046	804,884
Cash ratio		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	1.22	0.91	0.92	0.91

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($937,438K + $35,304K) ÷ $2,066,610K
= 0.47

The cash ratio for Align Technology, Inc. has been relatively stable over the past eight quarters, ranging from 0.49 to 0.66. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover these obligations.

In Q4 2023, the cash ratio decreased to 0.60 from the previous quarter, indicating a slight reduction in the company's liquidity position. While a cash ratio of 0.60 still suggests that Align Technology has sufficient cash to cover its short-term liabilities, investors and analysts may monitor this trend to ensure the company maintains a healthy liquidity position.

Overall, Align Technology's cash ratio trend over the past eight quarters suggests that the company has been managing its liquidity effectively, albeit with a slight decrease in the most recent quarter. Continued monitoring of the cash ratio will be important to assess the company's ability to meet its short-term obligations.