Align Technology Inc (ALGN)

Net profit margin

		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
Net income (ttm)	US$ in thousands	421,362	441,569	447,033	462,283	445,053	362,814	314,087	315,073	361,573	510,759	619,028	705,942	772,020	740,047	698,449	458,133	1,775,887	1,738,161	1,701,314	1,889,058
Revenue (ttm)	US$ in thousands	3,999,012	3,960,519	3,942,861	3,916,541	3,862,257	3,807,046	3,737,180	3,704,563	3,734,635	3,864,220	3,989,782	4,031,039	3,952,591	3,756,011	3,474,245	2,815,749	2,471,941	2,287,208	2,160,405	2,408,788
Net profit margin		10.54%	11.15%	11.34%	11.80%	11.52%	9.53%	8.40%	8.50%	9.68%	13.22%	15.52%	17.51%	19.53%	19.70%	20.10%	16.27%	71.84%	75.99%	78.75%	78.42%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $421,362K ÷ $3,999,012K
= 10.54%

Align Technology Inc has shown a fluctuating trend in its net profit margin over the period from March 31, 2020, to December 31, 2024. Initially, the company achieved high net profit margins, starting at 78.42% in March 2020 and peaking at 78.75% in June 2020. However, there was a gradual decline in the net profit margin, dropping to 71.84% by December 2020.

From March 2021 to December 2024, the net profit margin continued to decrease steadily, with fluctuations in the range of 8.40% to 20.10%. Despite some minor fluctuations, the trend shows a general downward trajectory, indicating a decrease in profitability over time.

The latest available data as of December 31, 2024, indicates a net profit margin of 10.54%, suggesting a significant decline compared to the initial high margins. This trend in net profit margin may raise concerns about the company's ability to maintain profitability and operational efficiency in the future.