Align Technology Inc (ALGN)

Current 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
Total current assets	US$ in thousands	2,446,620	2,701,800	2,465,460	2,331,880	2,424,390	2,500,580	2,376,800	2,480,770	2,494,080	2,455,310	2,231,820	2,115,560	1,849,540	1,473,250	1,149,240	1,576,520	1,633,420	1,505,580	1,457,370	1,439,110
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
Current ratio		1.18	1.27	1.17	1.16	1.26	1.38	1.32	1.33	1.30	1.37	1.32	1.52	1.40	1.31	1.22	1.73	1.68	1.73	1.85	1.79

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 some fluctuations over the past eight quarters. From Q1 2022 to Q4 2023, the current ratio has ranged between 1.16 and 1.38. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, while a lower current ratio may signal potential liquidity issues.

Align Technology's current ratio peaked at 1.38 in Q3 2022 before gradually declining to 1.18 in Q4 2023. The downward trend in the current ratio may suggest a decrease in the company's ability to cover its short-term liabilities with its current assets over this period. However, it is important to note that a current ratio above 1 generally indicates that the company can meet its current obligations.

Further analysis of the components of current assets and current liabilities contributing to the current ratio may provide insights into the underlying factors driving the fluctuations observed in Align Technology's current ratio.