Align Technology Inc (ALGN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,799,160	2,706,860	2,633,780	2,935,360	1,763,240
Revenue	US$ in thousands	3,999,010	3,862,260	3,734,640	3,952,580	2,471,940
Gross profit margin		70.00%	70.08%	70.52%	74.26%	71.33%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,799,160K ÷ $3,999,010K
= 70.00%

Over the past five years, Align Technology Inc's gross profit margin has exhibited some fluctuations. The margin increased from 71.33% in December 2020 to 74.26% by December 2021, indicating improved efficiency in generating profits from sales. However, in the subsequent years, the gross profit margin declined, reaching 70.00% by December 2024. This downward trend suggests potential challenges in managing production costs or pricing strategies, which may have impacted the company's profitability. Overall, although the gross profit margin has experienced variations, Align Technology Inc should assess and address the factors contributing to the recent decline to sustain profitability in the future.