Current Ratio
since 2005
Calculation
Align Technology Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.26 | = | 2,424,391) | ÷ | 1,925,887) |
| Dec 31, 2021 | 1.30 | = | 2,494,075) | ÷ | 1,924,071) |
| Dec 31, 2020 | 1.40 | = | 1,849,538) | ÷ | 1,325,601) |
| Dec 31, 2019 | 1.68 | = | 1,633,419) | ÷ | 970,970) |
| Dec 31, 2018 | 1.88 | = | 1,302,479) | ÷ | 692,073) |
| Dec 31, 2017 | 2.32 | = | 1,157,003) | ÷ | 497,816) |
| Dec 31, 2016 | 2.69 | = | 952,978) | ÷ | 354,335) |
| Dec 31, 2015 | 2.69 | = | 732,010) | ÷ | 271,672) |
| Dec 31, 2014 | 3.26 | = | 657,160) | ÷ | 201,811) |
| Dec 31, 2013 | 3.11 | = | 544,676) | ÷ | 175,338) |
| Dec 31, 2012 | 3.12 | = | 485,793) | ÷ | 155,771) |
| Dec 31, 2011 | 2.60 | = | 384,816) | ÷ | 148,117) |
| Dec 31, 2010 | 4.18 | = | 388,611) | ÷ | 92,974) |
| Dec 31, 2009 | 3.22 | = | 261,299) | ÷ | 81,243) |
| Dec 31, 2008 | 2.94 | = | 177,907) | ÷ | 60,572) |
| Dec 31, 2007 | 3.00 | = | 184,517) | ÷ | 61,459) |
| Dec 31, 2006 | 1.59 | = | 108,089) | ÷ | 67,783) |
| Dec 31, 2005 | 2.30 | = | 111,586) | ÷ | 48,608) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
An analysis of liquidity trends from 2005 to 2022 reveals a substantial expansion of the balance sheet accompanied by a systematic contraction of the current ratio. While current assets grew from $111.6 million to $2.42 billion over the period, current liabilities experienced a more aggressive growth trajectory in later years, rising from $48.6 million to $1.93 billion.
- High Liquidity Phase (2005–2010)
- The company maintained a highly conservative liquidity position during this period, with the current ratio peaking at 4.18 in 2010. This indicated a significant surplus of short-term assets relative to current obligations.
- Stabilization Period (2011–2014)
- A period of relative stability followed, during which the current ratio fluctuated between 2.60 and 3.26. This suggests a consistent approach to managing working capital as the company scaled its operations.
- Liquidity Compression Trend (2015–2022)
- A persistent downward trend is observed starting in 2015, with the ratio declining from 2.69 to 1.26 by the end of 2022. This compression is primarily attributed to the accelerated growth of current liabilities, which increased nearly sevenfold between 2014 and 2022, outpacing the growth of current assets during the same interval.
Despite the steady decline in the current ratio over the final eight years of the period, the ratio remained above 1.0 throughout the entire timeframe. This indicates that the company consistently maintained sufficient current assets to cover its short-term liabilities, although the margin of safety has narrowed significantly from historical peaks.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Align Technology Inc., current ratio, long-term trends, comparison to competitors
| Align Technology Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.26 | 1.63 | 1.40 | 4.40 | 1.86 | 0.77 |
| Dec 31, 2021 | 1.30 | 1.85 | 1.47 | 5.08 | 2.65 | 0.79 |
| Dec 31, 2020 | 1.40 | 1.72 | 1.55 | 6.86 | 2.13 | 0.74 |
| Dec 31, 2019 | 1.68 | 1.44 | 1.65 | 4.53 | 2.59 | 0.69 |
| Dec 31, 2018 | 1.88 | 1.62 | 1.56 | 5.28 | 2.28 | 0.73 |
| Dec 31, 2017 | 2.32 | 2.26 | 1.55 | 3.99 | 1.75 | 0.73 |
| Dec 31, 2016 | 2.69 | 4.02 | 1.61 | 5.45 | 3.29 | 0.69 |
| Dec 31, 2015 | 2.69 | 1.54 | 1.62 | 4.46 | 3.36 | 0.74 |
| Dec 31, 2014 | 3.26 | 1.45 | 1.72 | 3.69 | 3.82 | 0.77 |
| Dec 31, 2013 | 3.11 | 2.02 | 1.82 | 5.07 | 4.57 | 0.73 |
| Dec 31, 2012 | 3.12 | 2.36 | 1.78 | 4.71 | 1.62 | 0.78 |
| Dec 31, 2011 | 2.60 | 1.54 | 1.71 | 4.57 | 1.93 | 0.85 |
| Dec 31, 2010 | 4.18 | 1.29 | 1.87 | 4.66 | 1.92 | 0.78 |
| Dec 31, 2009 | 3.22 | 1.79 | 1.91 | 4.18 | 2.37 | 0.82 |
| Dec 31, 2008 | 2.94 | 1.47 | 0.81 | 4.28 | 2.07 | 0.76 |
| Dec 31, 2007 | 3.00 | 1.54 | 0.91 | 4.63 | 3.09 | 0.84 |
| Dec 31, 2006 | 1.59 | 0.94 | 0.77 | 4.64 | 2.36 | 0.87 |
| Dec 31, 2005 | 2.30 | 1.54 | 1.75 | 3.60 | 2.20 | 0.64 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Align Technology Inc., current ratio, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2022 | 1.26 | 1.13 |
| Dec 31, 2021 | 1.30 | 1.22 |
| Dec 31, 2020 | 1.40 | 1.19 |
| Dec 31, 2019 | 1.68 | 1.17 |
| Dec 31, 2018 | 1.88 | 1.21 |
| Dec 31, 2017 | 2.32 | 1.24 |
| Dec 31, 2016 | 2.69 | 1.43 |
| Dec 31, 2015 | 2.69 | 1.36 |
| Dec 31, 2014 | 3.26 | 1.43 |
| Dec 31, 2013 | 3.11 | 1.54 |
| Dec 31, 2012 | 3.12 | 1.47 |
| Dec 31, 2011 | 2.60 | 1.36 |
| Dec 31, 2010 | 4.18 | 1.29 |
| Dec 31, 2009 | 3.22 | 1.46 |
| Dec 31, 2008 | 2.94 | 1.04 |
| Dec 31, 2007 | 3.00 | 1.14 |
| Dec 31, 2006 | 1.59 | 0.99 |
| Dec 31, 2005 | 2.30 | 1.31 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Align Technology Inc., current ratio, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 1.26 | 1.23 |
| Dec 31, 2021 | 1.30 | 1.31 |
| Dec 31, 2020 | 1.40 | 1.30 |
| Dec 31, 2019 | 1.68 | 1.48 |
| Dec 31, 2018 | 1.88 | 1.52 |
| Dec 31, 2017 | 2.32 | 1.55 |
| Dec 31, 2016 | 2.69 | 1.73 |
| Dec 31, 2015 | 2.69 | 1.70 |
| Dec 31, 2014 | 3.26 | 1.92 |
| Dec 31, 2013 | 3.11 | 1.96 |
| Dec 31, 2012 | 3.12 | 1.84 |
| Dec 31, 2011 | 2.60 | 1.94 |
| Dec 31, 2010 | 4.18 | 1.81 |
| Dec 31, 2009 | 3.22 | 1.78 |
| Dec 31, 2008 | 2.94 | 1.44 |
| Dec 31, 2007 | 3.00 | 1.53 |
| Dec 31, 2006 | 1.59 | 1.39 |
| Dec 31, 2005 | 2.30 | 1.63 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).