Align Technology Inc (ALGN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 675,330 | 671,118 | 671,534 | 621,697 | 601,078 | 543,519 | 480,959 | 502,989 | 530,403 | 635,094 | 757,903 | 844,045 | 908,561 | 901,733 | 852,207 | 542,699 | 387,171 | 325,137 | 268,428 | 466,918 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 17.53% | 17.01% | 17.87% | 16.54% | 16.56% | 14.30% | 13.22% | 14.45% | 14.73% | 17.19% | 21.06% | 23.02% | 25.08% | 25.64% | 25.18% | 15.99% | 11.97% | 10.72% | 9.43% | 16.37% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $675,330K ÷ ($—K + $3,851,980K)
= 17.53%
The return on total capital for Align Technology Inc has exhibited fluctuations over the provided period. From March 31, 2020, to September 30, 2021, there was an improving trend, with the ratio increasing from 16.37% to 25.64%. This indicates that the company was effectively utilizing its total capital to generate returns during this period.
However, from September 30, 2021, to December 31, 2024, the return on total capital fluctuated within a range of 13.22% to 17.87%. This period saw some volatility in the company's ability to generate returns on its total capital, with some quarters performing better than others.
Overall, the return on total capital for Align Technology Inc has shown a degree of variability, but it remained relatively stable in recent quarters, ranging between 14.45% and 17.87%. This suggests that the company has managed to maintain a reasonable level of efficiency in utilizing its total capital to generate returns. Monitoring this ratio going forward would be essential to assess the company's capital efficiency and profitability.
Peer comparison
Dec 31, 2024