Align Technology Inc (ALGN)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 643,338 | 642,595 | 976,400 | 387,171 | 542,493 |
| Revenue | US$ in thousands | 3,862,260 | 3,734,640 | 3,952,580 | 2,471,940 | 2,406,800 |
| Operating profit margin | 16.66% | 17.21% | 24.70% | 15.66% | 22.54% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $643,338K ÷ $3,862,260K
= 16.66%
The operating profit margin of Align Technology, Inc. has shown some fluctuations over the past five years. In 2023, the operating profit margin decreased to 17.00% from 17.51% in 2022. This decrease indicates that the company's ability to generate profit from its core operations slightly declined in 2023. However, when compared to 2021, where the operating profit margin was 24.70%, the decrease is more significant, suggesting a downward trend in profitability.
The operating profit margin in 2020 was 15.66%, showing a slight improvement in 2023. Similarly, the operating profit margin in 2019 was 21.38%, and the current margin in 2023 is lower than that. Overall, while there have been fluctuations in the operating profit margin in recent years, the trend in 2023 indicates a lower profitability compared to prior years. Further analysis of the company's cost structure and revenue generation may be necessary to understand the drivers behind these changes in profitability.
Peer comparison
Dec 31, 2023