Align Technology Inc (ALGN)

Current 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
Total current assets	US$ in thousands	2,492,440	2,597,390	2,412,370	2,479,310	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
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
Current ratio		1.22	1.26	1.18	1.23	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,492,440K ÷ $2,038,030K
= 1.22

Align Technology Inc's current ratio has shown fluctuations over the past five years, ranging from a low of 1.16 to a high of 1.73. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

As of December 31, 2024, the current ratio stands at 1.22, indicating that the company has $1.22 in current assets for every $1 in current liabilities. This suggests that Align Technology Inc has a healthy liquidity position, and it can efficiently meet its short-term financial obligations.

Although the current ratio has fluctuated, the general trend shows that the company has managed to maintain a ratio above 1, which is considered satisfactory. Investors and creditors typically prefer a current ratio above 1 as it signifies that the company has sufficient current assets to cover its current liabilities.

Overall, the current ratio analysis provides insights into Align Technology Inc's liquidity position and its ability to manage short-term financial obligations effectively.