Align Technology Inc (ALGN)

Quick 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
Cash	US$ in thousands	1,043,890	1,041,940	761,429	865,805	937,438	1,239,010	951,956	832,383	942,050	1,044,520	877,501	926,119	1,099,370	1,237,820	1,086,360	1,131,700	960,843	615,532	404,359	790,696
Short-term investments	US$ in thousands	0	0	20,682	33,101	35,304	44,792	55,805	51,644	57,534	46,242	22,138	86,749	71,972	—	—	—	0	0	0	0
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		0.51	0.50	0.38	0.44	0.47	0.60	0.48	0.44	0.52	0.60	0.50	0.54	0.61	0.69	0.64	0.81	0.72	0.55	0.43	0.87

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 shown fluctuations over the years, ranging from a low of 0.38 to a high of 0.87. A quick ratio below 1 typically indicates that a company may have difficulties meeting its short-term obligations with its most liquid assets.

From March 31, 2020, to December 31, 2024, the quick ratio generally improved, with some fluctuations along the way. It increased significantly from June 30, 2020, to March 31, 2021, suggesting the company improved its liquidity position. However, there was a dip in the ratio in the following quarters, indicating potential challenges in quickly converting assets into cash to cover short-term liabilities.

Overall, the trend of the quick ratio for Align Technology Inc indicates a need for careful monitoring to ensure the company maintains a strong liquidity position to meet its short-term obligations effectively.