Cash Flow Statement
Quarterly Data
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
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Align Technology Inc., consolidated cash flow statement (quarterly data)
US$ in thousands
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Income (Loss)
- The net income demonstrated significant volatility over the reported quarterly periods. From 2018 through early 2020, net income generally exhibited an upward trend with occasional fluctuations. A dramatic spike occurred in the first quarter of 2020, followed by a sharp loss the subsequent quarter, likely due to extraordinary or non-recurring items. Net income subsequently recovered and remained positive but declined gradually from 2021 through 2023, indicating some pressure on profitability in recent periods.
- Deferred Taxes
- Deferred taxes fluctuated notably across quarters. There was a large negative impact in early 2020 coinciding with the spike in net income, reflecting possible timing or valuation adjustments. Thereafter, the balance showed considerable variability, with significant positive and negative values in different quarters, suggesting ongoing tax strategy adjustments or changes in temporary differences.
- Depreciation and Amortization
- This non-cash expense item gradually increased over the period, reflecting ongoing capital investment and possibly acquisitions. The steady rise from around $11 million in early 2018 to over $37 million by late 2023 suggests growth in fixed or intangible assets subject to amortization.
- Stock-Based Compensation
- Stock-based compensation also increased over time, rising from about $15.8 million in early 2018 to nearly $40 million by the last quarters. This upward trend points to increased use of equity incentives, potentially reflecting efforts to attract and retain talent or align employee interests with company performance.
- Non-Cash Operating Lease Cost
- Introduced mid-2018, this expense demonstrated a steady increase, indicating either expansions in leased assets or adjustments under accounting standards related to leases. The cost rose from approximately $4.3 million to $8.5 million by late 2023, implying growing lease liabilities or more extensive leasing activities.
- Impairments and Gains in Investments and Assets
- Several irregular items affected equity investments and long-lived assets. Notably, there were impairment charges, arbitration award gains, and lease termination gains recorded sporadically, illustrating one-time impacts on earnings. The presence of an impairment of an equity investment in 2023 and past impairments from 2018 to 2019 suggests occasional challenges related to investment valuation or asset usability.
- Working Capital Related Items (Accounts Receivable, Inventories, Prepaid Expenses, Accounts Payable, and Accrued Liabilities)
- These categories exhibited substantial volatility. Accounts receivable swings included both large negative and positive values, indicating significant fluctuations in receivables management or customer payment timing. Inventories showed erratic changes, including both increases and decreases. Prepaid expenses moved unevenly, suggesting irregular timing in expense recognition. Accounts payable and accrued liabilities also showed large movements, likely reflecting changing payment practices and operational timing differences. The irregular patterns in working capital imply complexities in operational cash flow management during the periods analyzed.
- Deferred Revenues
- Deferred revenues demonstrated an overall upward trend from 2018 through 2021, peaking in 2021 before declining in the subsequent periods. This pattern may reflect growth in advance payments from customers followed by normalization or changes in revenue recognition policies.
- Operating Cash Flow
- Net cash provided by operating activities showed strong growth with some fluctuations. After a peak in late 2018 and early 2019, operating cash flow remained robust but was challenged during 2020, coinciding with the COVID-19 pandemic timeframe, before recovering and stabilizing at high levels in 2021 through 2023.
- Investing Activities
- Cash flows from investing activities were notably volatile, with large acquisitions, purchases of property and equipment, and marketable securities transactions driving wide swings. There were significant outflows in acquisitions and property purchases, notably in 2020 and 2021, reflecting aggressive capital expenditure and investment strategies. Proceeds from sales and maturities of marketable securities were irregular but substantial at times, indicating active portfolio management.
- Financing Activities
- Financing cash flows were generally negative, marked by sizable stock repurchases, consistent issuance of common stock, and other financing transactions. Stock repurchase activities were significant and intermittently large, reflecting an ongoing effort to return capital to shareholders. The net cash used fluctuated quarter to quarter depending on the interplay of stock issuances and repurchases along with other financing items.
- Cash and Cash Equivalents
- The net change in cash and cash equivalents reflected the combined effects of operating, investing, financing activities, and foreign exchange impacts. Periods of strong positive cash flow alternate with notable declines, consistent with the cyclical nature of investing and financing activities. Despite fluctuations, cash balances appear to have overall increased by the end of the period, supporting liquidity.
- Summary
- The financial data reflects a company experiencing growth but also periodic challenges and adjustments, especially around 2020. Key trends include increases in depreciation, amortization, and stock-based compensation expenses; volatile working capital components; substantial investment in property and securities; and significant shareholder returns via stock repurchases. Operating cash flow remains solid, supporting ongoing investments and capital allocation activities. The fluctuations in income and deferred taxes point to complex tax and accounting considerations. Overall, the pattern indicates active management of growth opportunities in a fluctuating operational environment.