Align Technology Inc (ALGN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	937,438	942,050	1,099,370	960,843	550,425
Short-term investments	US$ in thousands	35,304	57,534	71,972	—	636,404
Receivables	US$ in thousands	1,047,150	1,000,170	897,198	663,112	599,933
Total current liabilities	US$ in thousands	2,066,610	1,925,890	1,924,070	1,325,600	970,970
Quick ratio		0.98	1.04	1.08	1.23	1.84

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($937,438K + $35,304K + $1,047,150K) ÷ $2,066,610K
= 0.98

The quick ratio of Align Technology, Inc. has shown a decreasing trend over the past five years, indicating a decline in the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio decreased from 1.57 in 2019 to 1.04 in 2023.

A quick ratio below 1.0 may suggest potential liquidity issues as it indicates that the company may not be able to cover its current liabilities solely with its quick assets. However, it is important to note that the quick ratio of Align Technology, Inc. has remained above 1.0 in all years, indicating that the company has had sufficient liquid assets to cover its short-term obligations.

Despite the decreasing trend, the quick ratio of Align Technology, Inc. has generally been above the critical threshold of 1.0, which signifies a relatively healthy liquidity position. Investors and stakeholders should continue to monitor the company's liquidity position to ensure that it remains able to meet its short-term financial obligations.