Align Technology Inc (ALGN)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	445,053	362,814	314,087	315,073	361,573	510,759	619,028	705,942	772,020	740,047	698,449	458,133	1,775,887	1,738,161	1,701,314	1,889,058	442,776	418,906	417,254	376,217
Total assets	US$ in thousands	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	2,500,700	2,350,380	2,346,020	2,234,430
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $445,053K ÷ $6,083,880K
= 7.32%

To analyze the return on assets (ROA) trend of Align Technology, Inc., we can observe the following:

1. The ROA has been fluctuating over the last eight quarters, ranging from a high of 11.88% in Q1 2022 to a low of 5.11% in Q2 2023.

2. The ROA peaked in Q1 2022 at 11.88%, which indicates that the company was generating $0.1188 in net income for every $1 of total assets during that period.

3. Subsequently, there has been a downward trend in ROA since Q1 2022, reaching 5.11% in Q2 2023. This suggests that the company's profitability in relation to its total assets has declined over this period.

4. It's worth noting that the ROA fluctuates between quarters, indicating potential changes in the efficiency of asset utilization or the company's profitability.

5. Further analysis would be required to determine the factors contributing to the fluctuations in ROA and assess whether these changes are reflective of strategic decisions, operational challenges, or external market conditions impacting Align Technology's performance.

In conclusion, Align Technology's ROA trend shows variability over the specified quarters, highlighting the importance of ongoing monitoring and deeper analysis to understand the company's asset utilization and profitability dynamics.