Align Technology Inc (ALGN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 421,362 | 445,053 | 361,573 | 772,020 | 1,775,890 |
| Total assets | US$ in thousands | 6,214,600 | 6,083,880 | 5,947,950 | 5,942,110 | 4,829,680 |
| ROA | 6.78% | 7.32% | 6.08% | 12.99% | 36.77% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $421,362K ÷ $6,214,600K
= 6.78%
The return on assets (ROA) of Align Technology Inc has exhibited a declining trend over the past five years. Starting at a high of 36.77% on December 31, 2020, the ROA decreased to 12.99% by December 31, 2021, and further to 6.08% by December 31, 2022. However, there was a slight improvement in ROA to 7.32% by December 31, 2023, before dropping again to 6.78% by December 31, 2024.
This declining trend in ROA suggests that Align Technology Inc may be experiencing challenges in generating profits from its assets efficiently. It is important for the company to closely monitor and address the factors contributing to this decline in order to improve its overall financial performance and profitability.
Peer comparison
Dec 31, 2024