Align Technology Inc (ALGN)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,630,490K
= 0.00
The debt-to-equity ratio for Align Technology, Inc. has consistently been 0.00 over the past five years, indicating that the company has not utilized any debt financing to fund its operations or growth during this period. A debt-to-equity ratio of 0.00 reflects a capital structure that is entirely equity-financed, suggesting a low risk profile in terms of financial leverage. It implies that the company relies solely on its shareholders' equity to support its assets and investments, which can be viewed positively in terms of financial stability and solvency. However, it is essential to note that a debt-to-equity ratio of 0.00 may also signal missed opportunities for leveraging debt to potentially enhance returns or fuel expansion strategies. Overall, Align Technology's consistent 0.00 debt-to-equity ratio underscores a cautious approach to capital structure, pointing towards a conservative financial strategy that prioritizes equity financing and minimizes the risks associated with borrowing.
Peer comparison
Dec 31, 2023