Align Technology Inc (ALGN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.18 | 1.26 | 1.30 | 1.40 | 1.68 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,446,620K ÷ $2,066,610K
= 1.18
The current ratio of Align Technology, Inc. has exhibited a declining trend over the past five years. The ratio stood at 1.18 as of December 31, 2023, down from 1.26 in the previous year and significantly lower compared to 1.68 in 2019. This downward trend indicates a potential deterioration in the company's short-term liquidity position, as its current assets may be less sufficient to cover its current liabilities. While a current ratio above 1 suggests that the company has an adequate amount of current assets to meet its short-term obligations, the declining trend warrants further monitoring to assess if Align Technology, Inc. may face challenges in meeting its current liabilities in the future.
Peer comparison
Dec 31, 2023