Align Technology Inc (ALGN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 671,764 | 643,338 | 599,057 | 976,400 | 271,204 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,851,980 | 3,630,490 | 3,601,360 | 3,622,710 | 3,233,860 |
| Return on total capital | 17.44% | 17.72% | 16.63% | 26.95% | 8.39% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $671,764K ÷ ($—K + $3,851,980K)
= 17.44%
Based on the provided data, Align Technology Inc's return on total capital has shown significant variability over the years. In 2020, the return on total capital was 8.39%, indicating a moderate performance. However, there was a notable improvement in 2021, with the return increasing to 26.95%, reflecting a substantial increase in the company's efficiency in generating profits relative to its total capital.
Subsequently, in 2022, there was a slight decline in the return on total capital to 16.63%, suggesting a potential dip in the company's profitability or efficiency in capital utilization. Nevertheless, Align Technology Inc recovered in the following years, with returns of 17.72% in 2023 and 17.44% in 2024, indicating a relatively stable performance in terms of capital efficiency.
Overall, Align Technology Inc's return on total capital has shown fluctuations, with the company experiencing a mix of improvements and slight declines in its capital utilization efficiency over the years covered in the data provided.
Peer comparison
Dec 31, 2024