Return on Assets (ROA)
since 2005
Calculation
Align Technology Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 6.08% | = | 100 | × | 361,573) | ÷ | 5,947,947) |
| Dec 31, 2021 | 12.99% | = | 100 | × | 772,020) | ÷ | 5,942,110) |
| Dec 31, 2020 | 36.77% | = | 100 | × | 1,775,888) | ÷ | 4,829,683) |
| Dec 31, 2019 | 17.71% | = | 100 | × | 442,776) | ÷ | 2,500,702) |
| Dec 31, 2018 | 19.50% | = | 100 | × | 400,235) | ÷ | 2,052,458) |
| Dec 31, 2017 | 13.02% | = | 100 | × | 231,418) | ÷ | 1,777,856) |
| Dec 31, 2016 | 13.59% | = | 100 | × | 189,682) | ÷ | 1,396,151) |
| Dec 31, 2015 | 12.43% | = | 100 | × | 144,020) | ÷ | 1,158,633) |
| Dec 31, 2014 | 14.76% | = | 100 | × | 145,832) | ÷ | 987,997) |
| Dec 31, 2013 | 7.73% | = | 100 | × | 64,295) | ÷ | 832,147) |
| Dec 31, 2012 | 7.76% | = | 100 | × | 58,691) | ÷ | 756,312) |
| Dec 31, 2011 | 10.28% | = | 100 | × | 66,716) | ÷ | 649,264) |
| Dec 31, 2010 | 15.57% | = | 100 | × | 74,253) | ÷ | 476,943) |
| Dec 31, 2009 | -8.80% | = | 100 | × | (31,269) | ÷ | 355,240) |
| Dec 31, 2008 | 28.63% | = | 100 | × | 79,987) | ÷ | 279,341) |
| Dec 31, 2007 | 16.04% | = | 100 | × | 35,724) | ÷ | 222,761) |
| Dec 31, 2006 | -23.07% | = | 100 | × | (34,963) | ÷ | 151,558) |
| Dec 31, 2005 | 0.99% | = | 100 | × | 1,413) | ÷ | 142,110) |
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
The Return on Assets (ROA) over the period from 2005 to 2022 is characterized by an initial phase of extreme volatility, followed by a prolonged period of stabilization, a singular peak of high efficiency in 2020, and a subsequent downward trend.
- Early Volatility (2005–2009)
- The initial five-year period was marked by significant instability in profitability relative to asset size. ROA swung from 0.99% in 2005 to a low of -23.07% in 2006, rebounded sharply to 28.63% by 2008, and fell again to -8.80% in 2009. These fluctuations reflect an inconsistent ability to generate net income from the asset base during the company's earlier stages.
- Operational Stabilization and Scaling (2010–2017)
- From 2010 to 2017, the ROA entered a more predictable range, generally oscillating between 7.7% and 15.6%. During this phase, total assets grew steadily from $476.9 million to $1.78 billion. The maintenance of a positive and relatively stable ROA during this rapid asset expansion indicates a successful scaling of operations and a more sustainable correlation between asset growth and income generation.
- Peak Performance and Recent Contraction (2018–2022)
- A significant increase in asset efficiency was observed between 2018 and 2020, with ROA climbing to 19.50% in 2018 and reaching a peak of 36.77% in 2020. This peak was driven by a substantial surge in net income to $1.78 billion. However, this trend reversed sharply in the following two years; ROA declined to 12.99% in 2021 and further dropped to 6.08% in 2022. This recent decline is primarily attributed to a contraction in net income while the total asset base remained elevated at approximately $5.95 billion.
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Comparison to Competitors
Align Technology Inc., ROA, 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 | 6.08% | 9.31% | 5.86% | 10.19% | 5.54% | 8.19% |
| Dec 31, 2021 | 12.99% | 9.40% | 6.26% | 12.58% | 3.87% | 8.15% |
| Dec 31, 2020 | 36.77% | 6.20% | 5.28% | 9.50% | 5.28% | 7.81% |
| Dec 31, 2019 | 17.71% | 5.43% | 6.21% | 14.17% | 5.16% | 7.96% |
| Dec 31, 2018 | 19.50% | 3.53% | 5.24% | 14.37% | 3.40% | 7.87% |
| Dec 31, 2017 | 13.02% | 0.63% | 5.45% | 11.46% | 4.04% | 7.59% |
| Dec 31, 2016 | 13.59% | 2.66% | 3.79% | 11.34% | 3.55% | 5.71% |
| Dec 31, 2015 | 12.43% | 10.72% | 4.15% | 12.00% | 2.51% | 5.22% |
| Dec 31, 2014 | 14.76% | 5.53% | 4.14% | 10.58% | 8.08% | 6.50% |
| Dec 31, 2013 | 7.73% | 6.00% | 4.18% | 16.99% | 9.95% | 6.87% |
| Dec 31, 2012 | 7.76% | 8.87% | 4.50% | 16.18% | 10.93% | 6.83% |
| Dec 31, 2011 | 10.28% | 7.84% | 5.09% | 16.16% | 10.18% | 7.57% |
| Dec 31, 2010 | 15.57% | 7.78% | 5.75% | 15.97% | 11.03% | 7.35% |
| Dec 31, 2009 | -8.80% | 10.96% | 9.10% | 12.85% | 9.17% | 6.47% |
| Dec 31, 2008 | 28.63% | 11.51% | 5.15% | 13.86% | 10.05% | 5.33% |
| Dec 31, 2007 | 16.04% | 9.08% | 6.43% | 13.90% | 14.36% | 9.14% |
| Dec 31, 2006 | -23.07% | 4.75% | 5.98% | 10.72% | 12.95% | 8.61% |
| Dec 31, 2005 | 0.99% | 11.57% | 4.79% | 18.77% | 10.86% | 7.98% |
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., ROA, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2022 | 6.08% | 7.49% |
| Dec 31, 2021 | 12.99% | 7.28% |
| Dec 31, 2020 | 36.77% | 6.62% |
| Dec 31, 2019 | 17.71% | 6.77% |
| Dec 31, 2018 | 19.50% | 5.72% |
| Dec 31, 2017 | 13.02% | 5.00% |
| Dec 31, 2016 | 13.59% | 4.37% |
| Dec 31, 2015 | 12.43% | 4.93% |
| Dec 31, 2014 | 14.76% | 6.03% |
| Dec 31, 2013 | 7.73% | 6.64% |
| Dec 31, 2012 | 7.76% | 7.54% |
| Dec 31, 2011 | 10.28% | 7.54% |
| Dec 31, 2010 | 15.57% | 7.69% |
| Dec 31, 2009 | -8.80% | 8.84% |
| Dec 31, 2008 | 28.63% | 7.51% |
| Dec 31, 2007 | 16.04% | 8.92% |
| Dec 31, 2006 | -23.07% | 7.40% |
| Dec 31, 2005 | 0.99% | 7.94% |
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., ROA, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 6.08% | 9.66% |
| Dec 31, 2021 | 12.99% | 9.46% |
| Dec 31, 2020 | 36.77% | 5.81% |
| Dec 31, 2019 | 17.71% | 8.32% |
| Dec 31, 2018 | 19.50% | 7.90% |
| Dec 31, 2017 | 13.02% | 5.19% |
| Dec 31, 2016 | 13.59% | 7.31% |
| Dec 31, 2015 | 12.43% | 7.71% |
| Dec 31, 2014 | 14.76% | 8.59% |
| Dec 31, 2013 | 7.73% | 8.76% |
| Dec 31, 2012 | 7.76% | 8.09% |
| Dec 31, 2011 | 10.28% | 7.36% |
| Dec 31, 2010 | 15.57% | 7.24% |
| Dec 31, 2009 | -8.80% | 9.73% |
| Dec 31, 2008 | 28.63% | 9.50% |
| Dec 31, 2007 | 16.04% | 8.88% |
| Dec 31, 2006 | -23.07% | 10.52% |
| Dec 31, 2005 | 0.99% | 9.67% |
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).