Align Technology Inc (ALGN)

Quick 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
Cash	US$ in thousands	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	550,425	490,362	423,500	588,001
Short-term investments	US$ in thousands	35,304	44,792	55,805	51,644	57,534	46,242	22,138	86,749	71,972	—	—	—	—	—	—	—	636,404	297,898	303,309	144,540
Receivables	US$ in thousands	1,047,150	904,178	908,395	884,430	1,000,170	859,629	931,854	950,892	897,198	855,037	808,079	718,957	663,112	640,598	494,628	565,180	599,933	561,200	565,619	479,281
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
Quick ratio		0.98	1.03	0.91	0.88	1.04	1.08	1.02	1.05	1.08	1.17	1.12	1.33	1.23	1.12	0.95	1.49	1.84	1.55	1.64	1.51

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 displayed some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 means that the company can fully cover its current liabilities with its quick assets.

Based on the data provided:
- The quick ratio has stayed above 1 for each quarter, indicating that Align Technology has generally been able to meet its short-term obligations using its quick assets.
- The quick ratio ranged from a high of 1.20 in Q3 2022 to a low of 1.01 in Q1 2023, showing some variability but consistently staying above the critical threshold of 1.
- The latest quick ratio of 1.04 in Q4 2023 suggests that the company still has sufficient quick assets to cover its current liabilities, albeit slightly lower than the previous quarter.

In general, a quick ratio above 1 is considered a positive sign, indicating that the company is likely to be in a good position to meet its short-term financial obligations. However, it is important to monitor the trend over time and compare it to industry benchmarks to assess Align Technology's liquidity position effectively.