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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: Liabilities and Stockholders’ Equity

Align Technology Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accounts payable 2.15 2.76 2.94 3.49 3.13
Accrued payroll and benefits 2.51 4.85 3.52 6.50 6.19
Accrued income taxes 1.25 0.57 0.62 0.57 0.28
Accrued expenses 1.08 1.13 0.88 2.22 1.92
Accrued sales and marketing expenses 0.61 0.70 0.71 0.00 0.00
Current operating lease liabilities 0.45 0.38 0.45 0.63 0.00
Accrued property, plant and equipment 0.33 0.78 0.57 0.37 0.40
Other accrued liabilities 1.40 1.81 1.63 2.52 2.65
Accrued liabilities 7.64% 10.22% 8.40% 12.79% 11.43%
Deferred revenues 22.59 19.40 16.11 22.54 19.15
Current liabilities 32.38% 32.38% 27.45% 38.83% 33.72%
Income tax payable 2.09 1.99 2.19 4.11 3.80
Long-term operating lease liabilities 1.69 1.73 1.33 1.74 0.00
Other long-term liabilities 3.29 2.94 2.07 1.49 1.44
Noncurrent liabilities 7.07% 6.65% 5.59% 7.34% 5.24%
Total liabilities 39.45% 39.03% 33.04% 46.17% 38.96%
Preferred stock, $0.0001 par value; none issued 0.00 0.00 0.00 0.00 0.00
Common stock, $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 17.57 16.81 20.18 36.27 42.75
Accumulated other comprehensive income (loss), net -0.17 0.07 0.90 -0.03 -0.14
Retained earnings 43.15 44.08 45.88 17.59 18.42
Stockholders’ equity 60.55% 60.97% 66.96% 53.83% 61.04%
Total liabilities and stockholders’ equity 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).

The common-size balance sheet reveals a capital structure characterized by a strong reliance on stockholders' equity, which consistently represents approximately 60% of the total liabilities and stockholders' equity from 2018 to 2022, with a notable peak of 66.96% in 2020. Total liabilities have remained relatively stable over the five-year period, fluctuating between a low of 33.04% in 2020 and a high of 46.17% in 2019, ending the period at 39.45%.

Liability Composition and Trends
Current liabilities constitute the vast majority of the total liability profile. A significant driver of this is deferred revenues, which exhibited volatility, decreasing to 16.11% in 2020 before recovering to 22.59% by 2022. This suggests a recurring pattern of advance payments from customers. Conversely, accrued liabilities have shown a general downward trend, falling from 11.43% in 2018 to 7.64% in 2022, with a marked reduction in accrued payroll and benefits, which declined from 6.19% to 2.51% over the same period.
Equity Structure Shift
A fundamental shift is observed in the composition of stockholders' equity. Additional paid-in capital decreased substantially from 42.75% in 2018 to 17.57% in 2022. This contraction is offset by a significant increase in retained earnings, which rose from 18.42% in 2018 to 43.15% in 2022. This transition indicates a shift from a reliance on external equity financing toward the accumulation of internally generated earnings.
Long-term Obligations
Noncurrent liabilities have remained a small portion of the overall balance sheet, moving from 5.24% in 2018 to 7.07% in 2022. Other long-term liabilities showed a gradual increase from 1.44% to 3.29%, while long-term operating lease liabilities remained stable between 1.33% and 1.74% after their introduction in 2019.

The overall financial trajectory demonstrates an improvement in internal capital generation and a stable approach to leverage. The dominance of deferred revenues within the liability section indicates a healthy pipeline of future revenue recognition, while the growth in retained earnings as a percentage of the total balance sheet reflects strengthened financial maturity and profitability.

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