Align Technology Inc (ALGN)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 445,053 | 361,573 | 772,020 | 1,775,890 | 442,776 |
| Revenue | US$ in thousands | 3,862,260 | 3,734,640 | 3,952,580 | 2,471,940 | 2,406,800 |
| Net profit margin | 11.52% | 9.68% | 19.53% | 71.84% | 18.40% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $445,053K ÷ $3,862,260K
= 11.52%
Net profit margin is a crucial financial metric that reveals the percentage of each dollar of revenue that represents profit after all expenses are deducted.
Align Technology, Inc.'s net profit margin has fluctuated over the past five years, ranging from 71.84% in 2020 to 9.68% in 2022. The significant decrease in net profit margin from 2020 to 2022 indicates a substantial reduction in profitability relative to revenue during that period.
The 2021 net profit margin of 19.53% showed an improvement compared to 2022 but was still lower than the exceptional performance in 2020. The latest figure of 11.52% in 2023 reflects a further decrease in profitability, signifying potential challenges in managing costs relative to revenue in the most recent year.
Overall, the fluctuating trend in Align Technology, Inc.'s net profit margin suggests the need for ongoing attention to operational efficiency and cost management in order to maintain and enhance profitability levels in the future.
Peer comparison
Dec 31, 2023