Align Technology Inc (ALGN)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	1,043,890	937,438	942,050	1,099,370	960,843
Short-term investments	US$ in thousands	0	35,304	57,534	71,972	0
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	2,038,030	2,066,610	1,925,890	1,924,070	1,325,600
Quick ratio		0.51	0.47	0.52	0.61	0.72

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,043,890K + $0K + $—K) ÷ $2,038,030K
= 0.51

The quick ratio of Align Technology Inc has been declining over the past five years. As of December 31, 2020, the quick ratio was 0.72, indicating that the company had $0.72 of liquid assets available to cover each $1 of current liabilities. However, by December 31, 2024, the quick ratio had decreased to 0.51, suggesting a decrease in the company's ability to meet its short-term obligations with its most liquid assets. This declining trend may raise concerns about the company's liquidity position and its ability to handle unexpected financial obligations in the short term.