Name: Align Technology Inc. (NASDAQ:ALGN) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	127,870)	163,886)	142,132)	87,250)	64,256)
Accrued payroll and benefits	149,508)	288,355)	170,106)	162,486)	127,109)
Accrued income taxes	74,323)	33,838)	30,130)	14,130)	5,752)
Accrued expenses	64,341)	67,169)	42,536)	55,529)	39,323)
Accrued sales and marketing expenses	36,407)	41,387)	34,488)	—)	—)
Current operating lease liabilities	26,574)	22,719)	21,735)	15,737)	—)
Accrued property, plant and equipment	19,922)	46,561)	27,692)	9,167)	8,193)
Other accrued liabilities	83,299)	107,286)	78,895)	62,909)	54,302)
Accrued liabilities	454,374)	607,315)	405,582)	319,958)	234,679)
Deferred revenues	1,343,643)	1,152,870)	777,887)	563,762)	393,138)
Current liabilities	1,925,887)	1,924,071)	1,325,601)	970,970)	692,073)
Income tax payable	124,393)	118,072)	105,748)	102,794)	78,008)
Long-term operating lease liabilities	100,334)	102,656)	64,445)	43,463)	—)
Other long-term liabilities	195,975)	174,597)	100,024)	37,306)	29,486)
Noncurrent liabilities	420,702)	395,325)	270,217)	183,563)	107,494)
Total liabilities	2,346,589)	2,319,396)	1,595,818)	1,154,533)	799,567)
Preferred stock, $0.0001 par value; none issued	—)	—)	—)	—)	—)
Common stock, $0.0001 par value	8)	8)	8)	8)	8)
Additional paid-in capital	1,044,946)	999,006)	974,556)	906,937)	877,514)
Accumulated other comprehensive income (loss), net	(10,284)	4,326)	43,501)	(688)	(2,774)
Retained earnings	2,566,688)	2,619,374)	2,215,800)	439,912)	378,143)
Stockholders’ equity	3,601,358)	3,622,714)	3,233,865)	1,346,169)	1,252,891)
Total liabilities and stockholders’ equity	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 balance sheet demonstrates a significant expansion in both total liabilities and stockholders' equity over the five-year period from 2018 to 2022. Total liabilities and stockholders' equity grew from 2,052,458 thousand US dollars to 5,947,947 thousand US dollars, indicating a substantial increase in the company's overall financial scale.

Current Liabilities Trends: Current liabilities exhibit a strong upward trajectory, increasing from 692,073 thousand US dollars in 2018 to 1,925,887 thousand US dollars in 2022. A primary driver of this growth is deferred revenues, which rose consistently from 393,138 thousand US dollars to 1,343,643 thousand US dollars. Accrued liabilities showed volatility, peaking in 2021 at 607,315 thousand US dollars before decreasing to 454,374 thousand US dollars in 2022. Specifically, accrued payroll and benefits saw a sharp increase to 288,355 thousand US dollars in 2021, followed by a significant reduction to 149,508 thousand US dollars in 2022.
Noncurrent Liabilities Analysis: Noncurrent liabilities increased from 107,494 thousand US dollars in 2018 to 420,702 thousand US dollars in 2022. This growth is attributed to a rise in long-term operating lease liabilities, which reached 100,334 thousand US dollars by 2022, and a marked increase in other long-term liabilities, which grew from 29,486 thousand US dollars to 195,975 thousand US dollars over the period.
Stockholders' Equity and Retained Earnings: Stockholders' equity grew from 1,252,891 thousand US dollars in 2018 to 3,601,358 thousand US dollars in 2022. The most significant contributor to this increase was retained earnings, which experienced a substantial jump between 2019 and 2020, rising from 439,912 thousand US dollars to 2,215,800 thousand US dollars. Additional paid-in capital remained relatively stable, with a gradual increase from 877,514 thousand US dollars to 1,044,946 thousand US dollars.
Overall Solvency and Capital Structure: The ratio of total liabilities to stockholders' equity has remained relatively consistent. In 2018, liabilities represented approximately 63.8% of equity; by 2022, this proportion was approximately 65.2%. This suggests that the company has scaled its operations and liabilities while maintaining a balanced capital structure funded largely by retained earnings rather than external debt.

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