Align Technology Inc (ALGN)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,630,490	3,601,360	3,622,710	3,233,860	1,346,170
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,630,490K)
= 0.00

Based on the data provided, Align Technology, Inc. has consistently maintained a debt-to-capital ratio of 0.00 over the past five years. A debt-to-capital ratio of 0.00 indicates that the company has no debt in its capital structure during this period.

Having a debt-to-capital ratio of 0.00 signifies that Align Technology has been relying solely on equity financing to support its operations and growth initiatives. This can be seen as a positive financial indicator, as it suggests that the company has been managing its finances prudently without taking on any debt obligations.

However, it's important to note that a debt-to-capital ratio of 0.00 may also imply missed opportunities for leveraging debt to potentially lower the cost of capital or fund strategic investments. It's crucial for the company to consider the optimal capital structure to balance the benefits of debt financing with associated risks.

In summary, Align Technology's consistent debt-to-capital ratio of 0.00 indicates a conservative financial approach with a minimal reliance on debt financing.