Align Technology Inc (ALGN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 607,628 | 643,338 | 642,595 | 976,400 | 293,633 |
| Total assets | US$ in thousands | 6,214,600 | 6,083,880 | 5,947,950 | 5,942,110 | 4,829,680 |
| Operating ROA | 9.78% | 10.57% | 10.80% | 16.43% | 6.08% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $607,628K ÷ $6,214,600K
= 9.78%
The operating return on assets (Operating ROA) of Align Technology Inc has shown varying levels over the years based on the provided data.
- As of December 31, 2020, Align Technology Inc's Operating ROA stood at 6.08%. This indicates that for every dollar of assets, the company generated a return of 6.08% from its operations.
- By December 31, 2021, the Operating ROA improved significantly to 16.43%, reflecting a notable increase in the company's operational efficiency and profitability.
- In the following year, by December 31, 2022, the Operating ROA slightly decreased to 10.80%, suggesting a moderation in the company's efficiency in utilizing its assets to generate operating income.
- Into December 31, 2023, the Operating ROA remained relatively stable at 10.57%, indicating a consistent operational performance in terms of asset utilization and profitability.
- Lastly, as of December 31, 2024, the Operating ROA decreased to 9.78%, signifying a slight decline in the company's ability to generate operating income from its assets compared to the previous year.
Overall, Align Technology Inc's Operating ROA trended positively from 2020 to 2021, experienced a slight decline in 2022, and then stabilized at around 10% in the subsequent years, with a mild decrease in 2024. This metric provides insights into the company's operational efficiency and profitability in utilizing its assets to generate returns.
Peer comparison
Dec 31, 2024