Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Align Technology Inc., consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Cash and cash equivalents	942,050)	1,099,370)	960,843)	550,425)	636,899)
Marketable securities, short-term	57,534)	71,972)	—)	318,202)	98,460)
Accounts receivable, net of allowance for doubtful accounts	859,685)	897,198)	657,704)	550,291)	439,009)
Inventories	338,752)	230,230)	139,237)	112,051)	55,641)
Value added tax receivables	140,484)	93,610)	—)	—)	—)
Prepaid expenses	69,124)	70,218)	30,069)	—)	—)
Other current assets	16,762)	31,477)	61,685)	102,450)	72,470)
Prepaid expenses and other current assets	226,370)	195,305)	91,754)	102,450)	72,470)
Current assets	2,424,391)	2,494,075)	1,849,538)	1,633,419)	1,302,479)
Marketable securities, long-term	41,978)	125,320)	—)	—)	9,112)
Property, plant and equipment, net	1,231,855)	1,081,926)	734,721)	631,730)	521,329)
Operating lease right-of-use assets, net	118,880)	121,257)	82,553)	56,244)	—)
Equity method investments	—)	—)	—)	—)	45,913)
Goodwill	407,551)	418,547)	444,817)	63,924)	64,029)
Intangible assets, net	95,720)	109,709)	130,072)	11,768)	17,920)
Deferred tax assets	1,571,746)	1,533,767)	1,552,831)	64,007)	64,689)
Other assets	55,826)	57,509)	35,151)	39,610)	26,987)
Noncurrent assets	3,523,556)	3,448,035)	2,980,145)	867,283)	749,979)
Total assets	5,947,947)	5,942,110)	4,829,683)	2,500,702)	2,052,458)

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 financial data reveals significant growth in total assets over the reviewed period, increasing from approximately $2.05 billion in 2018 to nearly $5.95 billion in 2022. This growth predominantly reflects notable expansions in both current and noncurrent assets.

Current Assets

Current assets rose from $1.30 billion in 2018 to a peak of approximately $2.49 billion in 2021, followed by a slight decrease to about $2.42 billion in 2022. Key components contributing to this trend include:

Cash and Cash Equivalents: Cash holdings showed volatility but remained substantial; starting at $637 million in 2018, decreasing to $550 million in 2019, then increasing sharply to nearly $1.10 billion in 2021 before declining to $942 million in 2022.
Marketable Securities, Short-Term: Displayed inconsistent availability of data but experienced a peak in 2019 at over $318 million, followed by a drop in subsequent years to $57.5 million in 2022.
Accounts Receivable, Net: Accounts receivable demonstrated steady growth, nearly doubling from $439 million in 2018 to $859 million in 2022, indicating increased sales or outstanding customer balances over time.
Inventories: Inventory levels expanded significantly from $56 million in 2018 to over $338 million in 2022, suggesting either stockpiling or scaling of operations.
Prepaid Expenses and Other Current Assets: These combined assets increased markedly starting from $72 million in 2018 to $226 million in 2022, reflecting potentially more advance payments or short-term asset accumulation.
Value Added Tax Receivables: First appearing in 2021 at nearly $94 million and rising to $140 million in 2022, indicating recoverable VAT amounts increasing in recent years.

Noncurrent Assets

Noncurrent assets rose substantially from $750 million in 2018 to approximately $3.52 billion in 2022. This rise is driven by:

Property, Plant, and Equipment, Net: Consistent growth from $521 million in 2018 to over $1.23 billion in 2022 points to ongoing capital investments in physical assets.
Operating Lease Right-of-Use Assets, Net: Introduced in 2019 with $56 million and increasing to approximately $119 million by 2022, reflecting adoption and expansion of leased assets.
Goodwill: Goodwill saw a dramatic increase in 2020 to about $445 million, maintaining a slightly decreasing level thereafter, just over $407 million in 2022, potentially linked to acquisitions or business combinations.
Intangible Assets, Net: After a sharp rise to $130 million in 2020, intangible assets slightly declined to $96 million by 2022.
Deferred Tax Assets: There was a substantial increase to over $1.55 billion in deferred tax assets starting in 2020, maintaining elevated levels through 2022. This development suggests recognition of significant tax benefits or timing differences.
Marketable Securities, Long-Term: Reported only in 2018, 2021, and 2022 with values fluctuating from $9 million to $125 million in 2021, then decreasing to $42 million in 2022.

Overall, the data highlights robust asset growth largely driven by increases in accounts receivable, inventories, property and equipment, and deferred tax assets. The consistent rise in capital assets and lease rights indicates expansion and operational scaling. Meanwhile, the fluctuations in cash, marketable securities, and goodwill suggest dynamic financial management and strategic transactions throughout the period. The emergence and growth in VAT receivables and prepaid expenses also point to evolving operating complexities.

Assets: Selected Items

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Current Assets: Selected Items

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Align Technology Inc. (NASDAQ:ALGN)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items