Align Technology Inc (ALGN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,083,880 | 5,947,950 | 5,942,110 | 4,829,680 | 2,500,700 |
| Total stockholders’ equity | US$ in thousands | 3,630,490 | 3,601,360 | 3,622,710 | 3,233,860 | 1,346,170 |
| Financial leverage ratio | 1.68 | 1.65 | 1.64 | 1.49 | 1.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,083,880K ÷ $3,630,490K
= 1.68
The financial leverage ratio of Align Technology, Inc. has fluctuated over the past five years. The ratio increased from 1.49 in 2020 to 1.86 in 2019, indicating higher leverage in that year. However, there was a subsequent decrease to 1.64 in 2021 followed by a slight increase to 1.65 in 2022, suggesting relatively stable leverage levels.
Notably, in 2023, the financial leverage ratio reached 1.68, reflecting a moderate increase compared to the previous year. This indicates that the company has slightly increased its reliance on debt to finance its operations and growth. It is important to monitor this trend to ensure that the company's capital structure remains sustainable and that it can effectively manage its debt obligations.
Peer comparison
Dec 31, 2023