Return on Equity (ROE)
since 2005
Calculation
Align Technology Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 10.04% | = | 100 | × | 361,573) | ÷ | 3,601,358) |
| Dec 31, 2021 | 21.31% | = | 100 | × | 772,020) | ÷ | 3,622,714) |
| Dec 31, 2020 | 54.92% | = | 100 | × | 1,775,888) | ÷ | 3,233,865) |
| Dec 31, 2019 | 32.89% | = | 100 | × | 442,776) | ÷ | 1,346,169) |
| Dec 31, 2018 | 31.94% | = | 100 | × | 400,235) | ÷ | 1,252,891) |
| Dec 31, 2017 | 20.12% | = | 100 | × | 231,418) | ÷ | 1,150,370) |
| Dec 31, 2016 | 19.06% | = | 100 | × | 189,682) | ÷ | 995,389) |
| Dec 31, 2015 | 16.98% | = | 100 | × | 144,020) | ÷ | 847,926) |
| Dec 31, 2014 | 19.37% | = | 100 | × | 145,832) | ÷ | 752,771) |
| Dec 31, 2013 | 10.14% | = | 100 | × | 64,295) | ÷ | 633,970) |
| Dec 31, 2012 | 10.10% | = | 100 | × | 58,691) | ÷ | 581,317) |
| Dec 31, 2011 | 13.59% | = | 100 | × | 66,716) | ÷ | 490,781) |
| Dec 31, 2010 | 19.66% | = | 100 | × | 74,253) | ÷ | 377,747) |
| Dec 31, 2009 | -11.45% | = | 100 | × | (31,269) | ÷ | 273,036) |
| Dec 31, 2008 | 36.60% | = | 100 | × | 79,987) | ÷ | 218,540) |
| Dec 31, 2007 | 22.17% | = | 100 | × | 35,724) | ÷ | 161,154) |
| Dec 31, 2006 | -41.84% | = | 100 | × | (34,963) | ÷ | 83,556) |
| Dec 31, 2005 | 1.51% | = | 100 | × | 1,413) | ÷ | 93,438) |
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 Equity (ROE) for the period between 2005 and 2022 exhibits three distinct phases: initial high volatility, a period of sustained stability and growth, and a recent peak followed by a sharp normalization.
- Early Volatility (2005–2010)
- The initial period is characterized by significant fluctuations in profitability. ROE shifted from 1.51% in 2005 to a deep negative of -41.84% in 2006, before recovering to a peak of 36.60% in 2008. A subsequent drop to -11.45% in 2009 suggests a period of instability in net income relative to the equity base during these early years.
- Stabilization and Consistent Growth (2011–2017)
- Beginning in 2011, the ROE entered a more predictable range, fluctuating between 10.10% and 20.12%. During this time, stockholders' equity grew steadily from approximately 490 million to 1.15 billion. The ability to maintain double-digit ROE while significantly expanding the equity base indicates a sustainable increase in operational efficiency and profit generation.
- Performance Acceleration and Peak (2018–2020)
- A sharp upward trajectory is observed starting in 2018, with ROE rising from 31.94% to a historical peak of 54.92% in 2020. This acceleration was driven by a substantial surge in net income, which reached 1.77 billion in 2020, far outpacing the growth of stockholders' equity.
- Correction and Normalization (2021–2022)
- Following the 2020 peak, a rapid decline in ROE is evident, falling to 21.31% in 2021 and further to 10.04% by 2022. This downward trend correlates with a significant reduction in net income, while stockholders' equity remained relatively stable at approximately 3.6 billion, effectively compressing the return on the invested capital.
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Comparison to Competitors
Align Technology Inc., ROE, 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 | 10.04% | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 21.31% | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 54.92% | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 32.89% | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 31.94% | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 20.12% | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 19.06% | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 16.98% | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 19.37% | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 10.14% | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 10.10% | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 13.59% | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 19.66% | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | -11.45% | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 36.60% | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 22.17% | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | -41.84% | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 1.51% | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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., ROE, long-term trends, comparison to sector (health care equipment & services)
| Align Technology Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2022 | 10.04% | 18.40% |
| Dec 31, 2021 | 21.31% | 17.28% |
| Dec 31, 2020 | 54.92% | 15.80% |
| Dec 31, 2019 | 32.89% | 15.85% |
| Dec 31, 2018 | 31.94% | 13.28% |
| Dec 31, 2017 | 20.12% | 12.21% |
| Dec 31, 2016 | 19.06% | 10.70% |
| Dec 31, 2015 | 16.98% | 11.84% |
| Dec 31, 2014 | 19.37% | 13.81% |
| Dec 31, 2013 | 10.14% | 14.22% |
| Dec 31, 2012 | 10.10% | 17.99% |
| Dec 31, 2011 | 13.59% | 17.02% |
| Dec 31, 2010 | 19.66% | 17.62% |
| Dec 31, 2009 | -11.45% | 19.50% |
| Dec 31, 2008 | 36.60% | 17.63% |
| Dec 31, 2007 | 22.17% | 20.02% |
| Dec 31, 2006 | -41.84% | 16.70% |
| Dec 31, 2005 | 1.51% | 16.22% |
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., ROE, long-term trends, comparison to industry (health care)
| Align Technology Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 10.04% | 24.82% |
| Dec 31, 2021 | 21.31% | 25.44% |
| Dec 31, 2020 | 54.92% | 16.70% |
| Dec 31, 2019 | 32.89% | 23.30% |
| Dec 31, 2018 | 31.94% | 21.27% |
| Dec 31, 2017 | 20.12% | 13.77% |
| Dec 31, 2016 | 19.06% | 18.53% |
| Dec 31, 2015 | 16.98% | 18.52% |
| Dec 31, 2014 | 19.37% | 19.17% |
| Dec 31, 2013 | 10.14% | 18.81% |
| Dec 31, 2012 | 10.10% | 18.20% |
| Dec 31, 2011 | 13.59% | 15.90% |
| Dec 31, 2010 | 19.66% | 14.85% |
| Dec 31, 2009 | -11.45% | 20.14% |
| Dec 31, 2008 | 36.60% | 20.29% |
| Dec 31, 2007 | 22.17% | 17.87% |
| Dec 31, 2006 | -41.84% | 20.49% |
| Dec 31, 2005 | 1.51% | 18.28% |
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).