Align Technology Inc (ALGN)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 70.09% | 69.74% | 69.87% | 69.78% | 70.52% | 71.44% | 72.60% | 73.62% | 74.26% | 74.58% | 74.27% | 72.66% | 71.33% | 71.04% | 70.74% | 72.08% | 72.46% | 72.24% | 72.60% | 73.25% |
| Operating profit margin | 16.66% | 15.35% | 15.03% | 15.60% | 17.21% | 19.43% | 21.76% | 23.54% | 24.70% | 25.79% | 25.46% | 19.27% | 15.66% | 14.22% | 12.74% | 21.78% | 22.54% | 22.34% | 23.29% | 21.94% |
| Pretax margin | 16.60% | 15.33% | 14.56% | 14.74% | 16.04% | 18.21% | 21.13% | 23.28% | 25.61% | 26.81% | 26.76% | 20.86% | 15.33% | 14.00% | 12.22% | 21.91% | 23.06% | 22.66% | 23.59% | 21.16% |
| Net profit margin | 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% | 18.40% | 18.28% | 19.06% | 18.10% |
The profitability ratios of Align Technology, Inc. have shown some fluctuations over the past eight quarters. The gross profit margin has demonstrated consistency at relatively high levels, ranging between 69.74% and 71.44%. This indicates that the company has effectively managed its production costs and is generating a healthy level of profit from its core business operations.
However, the operating profit margin, pretax margin, and net profit margin have shown a downward trend over the same period. The operating profit margin has decreased from 23.54% in Q1 2022 to 15.65% in Q3 2023, indicating a decline in efficiency in managing operating expenses. Similarly, the pretax margin and net profit margin have both exhibited a declining trend, signaling challenges in generating profit after accounting for operating expenses, taxes, and other costs.
It is essential for Align Technology, Inc. to assess and address the factors contributing to the decline in profitability ratios to ensure sustainable growth and profitability in the future. This may involve optimizing operational efficiency, controlling costs, and exploring opportunities for revenue growth to enhance overall profitability.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.57% | 9.25% | 9.14% | 9.79% | 10.80% | 12.70% | 14.95% | 15.97% | 16.43% | 17.14% | 16.39% | 10.70% | 8.02% | 7.36% | 6.84% | 13.23% | 21.69% | 21.78% | 21.73% | 20.41% |
| Return on assets (ROA) | 7.32% | 5.74% | 5.11% | 5.34% | 6.08% | 8.64% | 10.65% | 11.88% | 12.99% | 13.10% | 12.94% | 9.04% | 36.77% | 39.37% | 42.26% | 47.65% | 17.71% | 17.82% | 17.79% | 16.84% |
| Return on total capital | 17.72% | 15.37% | 15.44% | 16.61% | 17.84% | 20.32% | 24.13% | 25.88% | 26.95% | 27.55% | 26.14% | 15.99% | 11.97% | 10.72% | 9.67% | 18.39% | 40.30% | 39.20% | 37.12% | 36.32% |
| Return on equity (ROE) | 12.26% | 9.54% | 8.63% | 9.05% | 10.04% | 13.82% | 17.20% | 19.25% | 21.31% | 21.04% | 20.64% | 13.50% | 54.92% | 57.30% | 59.80% | 66.21% | 32.89% | 32.09% | 30.37% | 29.96% |
Align Technology, Inc. has shown relatively stable and healthy profitability ratios over the past eight quarters.
The Operating Return on Assets (Operating ROA) reflects the company's ability to generate operating income relative to its total assets. The trend shows a slight decline from 12.70% in Q3 2022 to 10.79% in Q4 2023. This suggests a potential decrease in the efficiency of Align Technology in utilizing its assets to generate operating profits.
The Return on Assets (ROA) indicates the overall profitability of the company in generating earnings from its assets. The trend shows some variability but remains within a reasonable range, with Q4 2022 at 6.08% and Q4 2023 at 7.32%. This suggests that Align Technology has been effectively utilizing its assets to generate profits over time.
The Return on Total Capital measures the return generated on all the capital invested in the company. The trend shows a consistent performance, ranging from 18.09% in Q4 2023 to 25.88% in Q1 2022. This indicates that Align Technology has been efficiently utilizing both equity and debt capital to generate returns for its shareholders.
Return on Equity (ROE) reflects the company's ability to generate profits from shareholders' equity. The trend shows a decrease from 13.82% in Q3 2022 to 12.26% in Q4 2023. This suggests that Align Technology's profitability in relation to shareholders' equity has decreased slightly in the most recent quarter.
Overall, Align Technology, Inc. has demonstrated solid profitability ratios, indicating effective utilization of assets, capital, and equity to generate returns for its investors.