Align Technology Inc (ALGN)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	421,362	441,569	447,033	462,283	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
Total stockholders’ equity	US$ in thousands	3,851,980	3,944,350	3,757,910	3,759,860	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
ROE		10.94%	11.19%	11.90%	12.30%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $421,362K ÷ $3,851,980K
= 10.94%

Align Technology Inc's Return on Equity (ROE) has shown a declining trend over the past few years, starting from a high of 66.21% in March 2020 to 10.94% by December 2024. This indicates a decreasing ability of the company to generate profits from its shareholders' equity.

The ROE decreasing from 2020 to 2024 could suggest challenges in maintaining profitability relative to the shareholders' investments. A higher ROE is generally preferred as it signifies the company's efficiency in utilizing shareholders' funds to generate profits.

Investors and analysts may be concerned about the decreasing trend in ROE as it could indicate issues in the company's operations, financial management, or competitive position in the market. It is essential for Align Technology Inc to focus on improving its operational efficiency and profitability to enhance its return on equity in the future.