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Align Technology Inc. (NASDAQ:ALGN)

This company has been moved to the archive! The financial data has not been updated since November 3, 2023.

Common-Size Balance Sheet: Assets

Align Technology Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash and cash equivalents 15.84 18.50 19.89 22.01 31.03
Marketable securities, short-term 0.97 1.21 0.00 12.72 4.80
Accounts receivable, net of allowance for doubtful accounts 14.45 15.10 13.62 22.01 21.39
Inventories 5.70 3.87 2.88 4.48 2.71
Value added tax receivables 2.36 1.58 0.00 0.00 0.00
Prepaid expenses 1.16 1.18 0.62 0.00 0.00
Other current assets 0.28 0.53 1.28 4.10 3.53
Prepaid expenses and other current assets 3.81% 3.29% 1.90% 4.10% 3.53%
Current assets 40.76% 41.97% 38.30% 65.32% 63.46%
Marketable securities, long-term 0.71 2.11 0.00 0.00 0.44
Property, plant and equipment, net 20.71 18.21 15.21 25.26 25.40
Operating lease right-of-use assets, net 2.00 2.04 1.71 2.25 0.00
Equity method investments 0.00 0.00 0.00 0.00 2.24
Goodwill 6.85 7.04 9.21 2.56 3.12
Intangible assets, net 1.61 1.85 2.69 0.47 0.87
Deferred tax assets 26.43 25.81 32.15 2.56 3.15
Other assets 0.94 0.97 0.73 1.58 1.31
Noncurrent assets 59.24% 58.03% 61.70% 34.68% 36.54%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

A significant structural shift in the composition of total assets occurred between 2019 and 2020, transitioning the balance sheet from a predominantly liquid profile to one heavily weighted toward non-current assets. Current assets, which represented 65.32% of total assets in 2019, decreased sharply to 38.30% in 2020 and have remained relatively stable around 41% through 2022. Conversely, non-current assets grew from 34.68% in 2019 to 61.70% in 2020, maintaining a similar proportion in subsequent years.

Liquidity and Current Asset Trends
Cash and cash equivalents exhibit a consistent downward trend, declining from 31.03% of total assets in 2018 to 15.84% by 2022. This reduction in cash concentration is mirrored by a decrease in the relative weight of accounts receivable, which dropped from approximately 21-22% in 2018-2019 to roughly 14-15% in 2020-2022. In contrast, inventories have increased their share of the asset mix, rising from 2.71% in 2018 to 5.70% in 2022, suggesting a larger allocation of capital toward stock relative to the total asset base.
Deferred Tax Assets and Non-current Shifts
The primary driver of the increase in non-current assets is the dramatic rise in deferred tax assets. This item shifted from a marginal 2.56% of total assets in 2019 to a peak of 32.15% in 2020, stabilizing at 26.43% by 2022. This represents the most substantial change in the overall asset structure over the five-year period.
Fixed Assets and Intangibles
Property, plant, and equipment, net, experienced a relative decline from 25.40% in 2018 to 15.21% in 2020, before recovering to 20.71% by 2022. Goodwill also saw a notable increase in 2020, rising to 9.21% from 2.56% in 2019, though it slightly moderated to 6.85% by 2022. Intangible assets followed a similar pattern, peaking in 2020 at 2.69% before settling at 1.61% in 2022.

Overall, the asset base has evolved from a high-liquidity position characterized by significant cash and receivable holdings to a structure dominated by non-current items, specifically deferred tax assets and fixed assets. While the immediate liquidity ratio has decreased, the growth in inventory suggests a shift in operational asset management.

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