Align Technology Inc (ALGN)

Financial leverage 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
Total assets	US$ in thousands	6,083,880	6,318,550	6,144,550	5,901,450	5,947,950	5,912,800	5,810,120	5,943,410	5,942,110	5,650,110	5,395,570	5,069,780	4,829,680	4,415,090	4,025,860	3,964,840	2,500,700	2,350,380	2,346,020	2,234,430
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
Financial leverage ratio		1.68	1.66	1.69	1.70	1.65	1.60	1.61	1.62	1.64	1.61	1.59	1.49	1.49	1.46	1.42	1.39	1.86	1.80	1.71	1.78

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,083,880K ÷ $3,630,490K
= 1.68

Align Technology, Inc.'s financial leverage ratio has been relatively stable over the past eight quarters, ranging from 1.60 to 1.70. The ratio indicates that the company is utilizing debt to finance its operations, with an average leverage ratio of approximately 1.66 during this period. This suggests that Align Technology relies moderately on debt to fund its assets and operations, which can increase the company's financial risk but also potentially amplify returns for shareholders. Overall, the consistent leverage ratio around the 1.66 level indicates a consistent approach to balancing debt and equity in the company's capital structure.