Align Technology Inc (ALGN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,630,490	3,801,870	3,638,300	3,480,050	3,601,360	3,694,620	3,599,080	3,666,850	3,622,710	3,516,760	3,384,410	3,393,580	3,233,860	3,033,470	2,845,040	2,852,990	1,346,170	1,305,550	1,373,680	1,255,700
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $445,053K ÷ $3,630,490K
= 12.26%

To analyze Align Technology, Inc.'s return on equity (ROE) based on the data provided:

1. The ROE has shown a decreasing trend over the past four quarters, starting at 19.25% in Q1 2022 and gradually declining to 12.26% in Q4 2023.

2. The decline in ROE may indicate a decrease in profitability relative to shareholders' equity over the period analyzed, which could be a concern for investors.

3. Align Technology's ROE was at its highest in Q1 and Q2 of 2022, reaching 19.25% and 17.20%, respectively, but has been steadily declining since then.

4. A declining ROE may be a sign of inefficiencies in asset utilization or increasing debt levels relative to equity, impacting the company's ability to generate profits from shareholders' investments.

5. Investors and stakeholders may want to further investigate the reasons behind the declining ROE to assess the company's financial health and sustainability of its profitability in the future.

In conclusion, based on the trend observed in Align Technology, Inc.'s ROE data, there are indications of a decreasing profitability relative to shareholders' equity over the past quarters, which may warrant further analysis and attention.