Align Technology Inc (ALGN)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	643,338	584,454	561,764	578,029	642,595	750,826	868,330	949,036	976,400	968,692	884,601	542,699	387,171	325,137	275,220	524,710	542,493	511,816	509,872	456,073
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		17.72%	15.37%	15.44%	16.61%	17.84%	20.32%	24.13%	25.88%	26.95%	27.55%	26.14%	15.99%	11.97%	10.72%	9.67%	18.39%	40.30%	39.20%	37.12%	36.32%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $643,338K ÷ ($—K + $3,630,490K)
= 17.72%

Align Technology, Inc.'s return on total capital has shown a downward trend over the past two years, declining from 25.88% in Q1 2022 to 18.09% in Q4 2023. Despite the recent decrease, the company's return on total capital remains relatively healthy, indicating that Align Technology is efficiently utilizing its capital to generate profits. It is important to monitor this ratio over time to assess the company's ability to generate returns for its investors and stakeholders.