Align Technology Inc (ALGN)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 reported a debt-to-capital ratio of 0.00 across all quarters in the periods shown. A debt-to-capital ratio of 0.00 indicates that the company does not have any debt in its capital structure, meaning that the company's funding is entirely sourced from equity. This suggests that Align Technology has been relying solely on equity financing to support its operations and growth, without taking on any debt obligations. While a low or zero debt-to-capital ratio can signal financial stability and lower financial risk, it is important to consider the potential limitations of excessive reliance on equity financing, as it may limit flexibility in capital structure optimization. Further analysis of the company's financial structure and future capital allocation decisions would provide a more nuanced understanding of its financial health and strategic direction.