Align Technology Inc (ALGN)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 638,755 | 680,140 | 684,188 | 677,946 | 657,327 | 584,454 | 529,575 | 545,840 | 600,487 | 708,718 | 858,411 | 939,117 | 976,400 | 968,692 | 884,601 | 542,699 | 387,171 | 325,137 | 275,220 | 524,710 |
| Total assets | US$ in thousands | 6,214,600 | 6,365,970 | 6,158,320 | 6,155,750 | 6,083,880 | 6,318,550 | 6,144,550 | 5,901,450 | 5,947,950 | 5,912,800 | 5,810,120 | 5,943,410 | 5,942,110 | 5,650,110 | 5,395,570 | 5,069,780 | 4,829,680 | 4,415,090 | 4,025,860 | 3,964,840 |
| Operating ROA | 10.28% | 10.68% | 11.11% | 11.01% | 10.80% | 9.25% | 8.62% | 9.25% | 10.10% | 11.99% | 14.77% | 15.80% | 16.43% | 17.14% | 16.39% | 10.70% | 8.02% | 7.36% | 6.84% | 13.23% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $638,755K ÷ $6,214,600K
= 10.28%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. For Align Technology Inc, the Operating ROA has shown fluctuation over the period from March 31, 2020, to December 31, 2024.
The trend of Align Technology's Operating ROA demonstrates a general improvement from the initial value of 13.23% recorded on March 31, 2020. The ratio declined slightly in the following periods but started to increase steadily from June 30, 2021, reaching a peak of 17.14% on September 30, 2021. This peak was sustained for a few quarters before a slight decrease in the ratio by December 31, 2021, to 16.43%.
Subsequently, Align Technology's Operating ROA exhibited a fluctuating pattern with values ranging from 15.80% on March 31, 2022, to 8.62% on June 30, 2023. There was a notable increase in the ratio to 11.11% by June 30, 2024, after which it maintained levels above 10%.
The Operating ROA of Align Technology Inc, in general, indicates that the company has been efficiently utilizing its assets to generate operating profits, with the ratio consistently above 10% in recent quarters. However, the fluctuations observed in the ratio suggest potential variability in the company's operating performance and asset management strategies, necessitating further analysis to understand the factors driving these changes.
Peer comparison
Dec 31, 2024