Align Technology Inc (ALGN)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	421,362	445,053	361,573	772,020	1,775,890
Revenue	US$ in thousands	3,999,010	3,862,260	3,734,640	3,952,580	2,471,940
Net profit margin		10.54%	11.52%	9.68%	19.53%	71.84%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $421,362K ÷ $3,999,010K
= 10.54%

The net profit margin of Align Technology Inc has shown a declining trend over the years.

In December 2020, the net profit margin was exceptionally high at 71.84%, indicating that the company was able to retain a significant portion of its revenue as profit. However, by December 2021, the net profit margin decreased to 19.53%, marking a substantial decline. This decrease suggests a potential increase in costs, a decrease in sales prices, or a combination of both.

The trend continued in December 2022 with a net profit margin of 9.68%, signifying a further reduction in the company's profitability compared to the previous year. However, by December 2023, there was a slight improvement to 11.52%, indicating some positive developments, but still below the levels observed in 2020.

By December 2024, the net profit margin stood at 10.54%, reflecting a relatively stable performance compared to the previous year but remaining significantly lower than the exceptionally high level recorded in 2020.

Overall, the decreasing trend in Align Technology Inc's net profit margin over the years may raise concerns about the company's efficiency in managing costs and generating profits relative to its revenue. It would be advisable for stakeholders to monitor this metric closely and assess the factors contributing to the fluctuations in profitability.