Analysis of Geographic Areas
Align Technology Inc. operates in 3 regions: U.S.; Switzerland; and Other International.
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- Income Statement
- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Aggregate Accruals
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Area Asset Turnover
Align Technology Inc., asset turnover by geographic area
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Switzerland | |||||
| Other International |
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).
- U.S. Geographic Asset Turnover
- The asset turnover ratio in the U.S. experienced a fluctuating trend over the analyzed period. Starting at 7.35 in 2018, it slightly declined to 7.07 in 2019 and then decreased more noticeably to 6.09 in 2020. However, in 2021, a significant recovery occurred, with the ratio increasing to 8.19. This improvement was somewhat tempered in 2022, where the ratio slightly decreased to 7.73, though it remained above the earlier years 2018 through 2020.
- Switzerland Geographic Asset Turnover
- Available data for Switzerland begins in 2020 with an asset turnover ratio of 3.14, followed by a marginal decrease to 3.05 in 2021. A more pronounced decline was observed in 2022, where the ratio fell to 2.28. This denotes a downward trend in asset efficiency in the Swiss market from 2020 to 2022.
- Other International Geographic Asset Turnover
- The asset turnover ratio labeled as "Other International" started at 2.47 in 2018, with a slight decline to 2.38 in 2019. A more substantial decrease occurred in 2020, falling to 1.48, followed by a moderate increase to 1.60 in 2021. In 2022, the ratio declined again to 1.42, its lowest point in the period analyzed. Overall, the trend indicates a gradual deterioration in asset turnover efficiency in international markets outside the U.S. and Switzerland over the five-year span.
Area Asset Turnover: U.S.
Align Technology Inc.; U.S.; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2022 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
- Net Revenues
-
The net revenues in the U.S. geographic area exhibited growth from 2018 to 2019, increasing from approximately 1.02 billion to 1.16 billion US dollars. However, there was a decline in 2020 to around 1.10 billion, followed by a significant rebound in 2021, reaching a peak of approximately 1.72 billion US dollars. The figure then saw a slight decrease in 2022 to 1.66 billion US dollars.
- Long-lived Assets
-
The value of long-lived assets displayed a consistent upward trend throughout the period under review. Starting at approximately 139 million US dollars in 2018, the assets increased each year, reaching roughly 215 million US dollars by the end of 2022.
- Area Asset Turnover
-
The area asset turnover ratio showed some fluctuations over the years. Initially, it decreased from 7.35 in 2018 to 7.07 in 2019, and further dropped to its lowest point of 6.09 in 2020. This was followed by a notable recovery in 2021, reaching 8.19, which was the highest ratio in the given timeframe. In 2022, the ratio slightly declined to 7.73 but remained higher than the early years.
- Overall Insights
-
The period reflects a dynamic environment with revenues experiencing growth and some volatility, notably the dip in 2020 likely linked to external disruptions. The steady increase in long-lived assets suggests continued investment and capacity building in the region. The area asset turnover ratio indicates variations in asset efficiency, with a marked recovery post-2020, implying improved utilization of assets to generate revenues after the downturn.
Area Asset Turnover: Switzerland
Align Technology Inc.; Switzerland; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2022 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The financial data for the Switzerland geographic area displays notable trends over the recent years covered.
- Net Revenues
- Net revenues began reporting in 2020 with a value of 809,080 thousand US dollars, followed by significant growth to 1,353,229 thousand US dollars in 2021. However, in 2022, revenues experienced a decline, falling to 1,216,094 thousand US dollars, which indicates a reversal in the growth trend but still remains considerably higher than the initial recorded figure.
- Long-lived Assets
- There is a consistent upward trend in the value of long-lived assets from 2020 through 2022. Starting at 257,337 thousand US dollars in 2020, assets increased substantially to 444,205 thousand US dollars in 2021, followed by a further increase to 532,921 thousand US dollars in 2022. This suggests ongoing investment and expansion in fixed assets within the region.
- Area Asset Turnover
- The asset turnover ratio, which measures the efficiency of the use of assets to generate revenue, shows a declining trend. It started at 3.14 in 2020, slightly decreased to 3.05 in 2021, and then dropped more noticeably to 2.28 in 2022. This decline implies a reduction in operational efficiency or a change in asset utilization despite the growth in physical assets.
In summary, the Switzerland area experienced rapid revenue growth initially, which decelerated in the latest year. At the same time, investment in long-lived assets increased steadily. The declining asset turnover ratio suggests that new investments have not yet translated proportionally into increased revenue generation, pointing to potential inefficiencies or a shift in the business model or market conditions in recent periods.
Area Asset Turnover: Other International
Align Technology Inc.; Other International; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2022 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The analysis of the Other International geographic area data reveals several notable trends over the five-year period ending December 31, 2022.
- Net Revenues
- Net revenues exhibited a general upward trend initially, increasing from approximately $943 million in 2018 to about $1.245 billion in 2019. However, this figure sharply declined in 2020 to around $563 million, representing a considerable drop. The following years saw a partial recovery, with revenues increasing to approximately $875 million in 2021, but then experiencing a slight decrease to about $858 million in 2022. Overall, net revenues in 2022 were significantly lower than the peak recorded in 2019.
- Long-lived Assets
- Long-lived assets demonstrated a pattern of fluctuation but with an overall upward trajectory. Starting from approximately $382 million in 2018, assets increased substantially to about $524 million in 2019, then dropped to around $379 million in 2020. Following this decline, assets rose again in the subsequent years, reaching approximately $548 million in 2021 and further increasing to about $603 million by the end of 2022. This suggests ongoing investment or asset growth after the dip in 2020.
- Area Asset Turnover Ratio
- The area asset turnover ratio, a measure of efficiency in utilizing assets to generate revenue, showed a declining tendency over the period. It started at 2.47 in 2018, indicating strong efficiency, then gradually decreased to 2.38 in 2019. The ratio dropped more significantly to 1.48 in 2020 and slightly recovered to 1.60 in 2021, followed by a decrease again to 1.42 in 2022. This downward trend suggests diminishing efficiency in asset utilization relative to revenues during this timeframe.
In summary, the Other International segment faced revenue volatility with a peak in 2019 and subsequent declines, particularly in 2020. Despite fluctuations, long-lived assets increased overall, which, coupled with the declining asset turnover ratio, points to possible challenges in translating asset investments into proportional revenue growth in recent years.
Net revenues
Align Technology Inc., net revenues by geographic area
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Switzerland | |||||
| Other International | |||||
| Total |
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 analysis of net revenues by geographic area reveals distinct trends across the reported periods.
- U.S. Market
- Net revenues in the U.S. saw a moderate growth from 2018 through 2019, increasing from approximately 1.02 billion US dollars to 1.16 billion. However, a slight decline occurred in 2020, with revenues decreasing to nearly 1.10 billion. This was followed by a notable surge in 2021, reaching over 1.72 billion. Despite this peak, revenues decreased slightly in 2022 to approximately 1.66 billion, indicating some volatility but overall an upward trajectory over the five-year span.
- Switzerland Market
- Revenues from Switzerland were not recorded for 2018 and 2019, indicating either the absence of operations or unreported data in those years. Starting in 2020, revenues amounted to approximately 809 million, which then increased substantially to over 1.35 billion in 2021. In 2022, a decline to about 1.22 billion was observed. Despite the recent decrease, Switzerland's market displayed strong growth upon entry into the reports, becoming a significant contributor to overall revenue.
- Other International Markets
- Revenues from other international markets showed fluctuations. A strong increase was evident from 2018 at approximately 943 million to nearly 1.25 billion in 2019. However, 2020 registered a sharp decline to roughly 563 million, the lowest point in the period studied. A recovery trend was noted in 2021, with revenues rising close to 875 million, followed by a marginal decrease to about 859 million in 2022. The data indicates volatility in this segment, with largest variation occurring around 2020.
- Total Revenue
- Total net revenues grew consistently from 2018 to 2020, moving from nearly 1.97 billion to about 2.47 billion. A substantial jump occurred in 2021, with total revenues reaching approximately 3.95 billion. In 2022, a decrease was observed, with total revenues falling to around 3.73 billion. The overall trend shows significant growth especially in 2021, followed by a slight consolidation or correction in the following year.
In summary, the U.S. and Switzerland markets demonstrated robust revenue growth with some year-to-year variability, whereas the other international segment experienced greater volatility, particularly with a marked dip in 2020. The total revenue pattern follows these mixed trends, indicating strong overall growth with moderate declines in the most recent year, possibly due to external factors affecting specific regions or markets differently.
Long-lived assets
Align Technology Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| U.S. | |||||
| Switzerland | |||||
| Other International | |||||
| Total |
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 long-lived assets data across geographic areas over the reported periods reveal several notable trends and shifts in asset distribution.
- United States
- The U.S. segment shows a steady increase in long-lived assets from 139,239 thousand USD at the end of 2018 to 214,804 thousand USD at the end of 2022. This represents a consistent annual growth, although the rate of increase appears to slow slightly in the last period from 2021 to 2022.
- Switzerland
- The data for Switzerland is unavailable for 2018 and 2019, but beginning in 2020, assets in this region appear prominently. They expanded significantly from 257,337 thousand USD in 2020 to 532,921 thousand USD in 2022. This more than doubling of assets over three years indicates strong investment or asset acquisition in this geography.
- Other International
- The Other International category exhibits some variability. Assets increased considerably from 382,090 thousand USD in 2018 to a peak of 523,523 thousand USD in 2019, followed by a decline to 379,398 thousand USD in 2020. In 2021 and 2022, the assets rebounded with marked growth, reaching 603,010 thousand USD by the end of 2022. This cyclical pattern suggests possible asset reallocation or market adjustments impacting this category.
- Total Assets
- The total long-lived assets show a robust upward trajectory over the five-year span, growing from 521,329 thousand USD in 2018 to 1,350,735 thousand USD in 2022. The increase is especially pronounced between 2020 and 2021, corresponding with the rising contribution from Switzerland and a recovery in Other International assets. This overall growth reflects a significant expansion in asset base, driven largely by international holdings.
In summary, while the U.S. maintains steady asset growth, the significant investments in Switzerland and fluctuating but ultimately increasing assets in Other International regions are primary drivers of the overall asset expansion. This pattern indicates a strategic emphasis on broadening the asset base internationally, contributing to the substantial total asset growth observed.