Align Technology Inc (ALGN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.61 | 1.68 | 1.65 | 1.64 | 1.49 |
Based on the provided data for Align Technology Inc, the solvency ratios reflect a strong financial position with consistently low levels of debt compared to assets, capital, and equity.
The Debt-to-assets ratio remained at 0.00 for each year from 2020 to 2024, indicating that the company has no significant debt in relation to its total assets. This suggests that Align Technology Inc is not heavily reliant on borrowing to finance its operations or investments.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also stood at 0.00 across the same period, further highlighting the company's minimal debt levels in relation to its capital structure and equity. This shows that Align Technology Inc maintains a healthy balance between debt and its own funds.
The Financial leverage ratio, which measures the company's ability to meet its financial obligations through debt, slightly fluctuated between 1.49 to 1.68 over the years. Despite the variations, the ratio remained relatively stable and at a reasonable level, indicating that Align Technology Inc has effectively managed its debt levels without posing a significant financial risk.
Overall, the solvency ratios suggest that Align Technology Inc has a strong financial position with a conservative approach to debt management, which bodes well for its long-term stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 301.47 | 111.62 | 27.10 | 32.99 |
The interest coverage ratio for Align Technology Inc has shown a generally positive trend over the years, reflecting the company's ability to comfortably cover its interest expenses. As of December 31, 2020, the ratio stood at 32.99, indicating that the company generated nearly 33 times the operating income to cover its interest obligations.
Although there was a slight decrease in the interest coverage ratio to 27.10 by December 31, 2021, the ratio remained at a healthy level, suggesting the company's financial health.
Subsequently, there was a significant improvement in the interest coverage ratio to 111.62 by December 31, 2022, which further increased to 301.47 by December 31, 2023. These high ratios indicate a strong ability to meet interest payments from operating income.
Looking at the data, there is a missing value for December 31, 2024, denoted by a dash. It is important for investors to seek clarity on why this data point is missing to ensure a comprehensive understanding of the company's financial performance.
In summary, the interest coverage ratios for Align Technology Inc demonstrate a consistent ability to meet its interest obligations, with a notable improvement in coverage over the years, bolstering investor confidence in the company's financial stability.