Align Technology Inc (ALGN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.68 | 1.65 | 1.64 | 1.49 | 1.86 |
Solvency ratios help assess a company's ability to meet its long-term financial obligations. Looking at Align Technology, Inc.'s solvency ratios over the past five years, we observe consistent values for the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio at 0.00. This indicates that the company has not relied heavily on debt to finance its operations or growth during this period.
However, the financial leverage ratio has shown some variability, starting at 1.86 in 2019, decreasing to 1.49 in 2020, and then gradually increasing to 1.68 in 2023. The financial leverage ratio of 1.68 in 2023 suggests that the company has higher financial leverage compared to previous years, indicating a greater reliance on debt financing relative to equity.
Overall, the consistent low values of the debt-based ratios reflect Align Technology's sound financial position with low debt levels, while the increasing financial leverage ratio points to a shift towards more leverage in the company's capital structure. Investors and stakeholders should continue to monitor these solvency ratios to assess the company's long-term financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 301.47 | 119.73 | 27.10 | — | 3.67 |
As the interest coverage ratio is not explicitly provided in the data table for Align Technology, Inc., it is not possible to analyze the company's ability to meet its interest payments solely based on this information. The interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
To assess Align Technology, Inc.'s financial health and ability to cover its interest payments, it would be necessary to have access to the company's EBIT and interest expenses figures for the relevant years. By calculating the interest coverage ratio for each year using the formula mentioned above, we would be able to evaluate the company's ability to service its debt obligations.
Without this specific data, a comprehensive analysis of Align Technology, Inc.'s interest coverage ratio and its implications for the company's financial stability and performance cannot be provided at this time. It is recommended to obtain the necessary financial information to perform a more in-depth evaluation of the company's debt-servicing capacity.