Align Technology Inc (ALGN)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	6,083,880	5,947,950	5,942,110	4,829,680	2,500,700
Operating ROA		10.57%	10.80%	16.43%	8.02%	21.69%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $643,338K ÷ $6,083,880K
= 10.57%

Operating ROA is a key financial ratio that indicates how efficiently a company is generating operating profit from its assets. Align Technology, Inc.'s operating ROA has fluctuated over the past five years, ranging from a low of 8.02% in 2020 to a high of 20.57% in 2019. In 2023, the company's operating ROA decreased slightly to 10.79% from 11.00% in 2022.

A higher operating ROA is generally favorable as it reflects better operational efficiency and profitability. However, the downward trend in Align Technology's operating ROA over the last two years may indicate challenges in maintaining profitability relative to its asset base.

Further analysis of the company's operating expenses, asset management, and revenue generation strategies may be necessary to identify the factors contributing to the fluctuating trend in operating ROA. Overall, monitoring and improving operating ROA can be crucial for Align Technology to enhance its operational performance and shareholder value.