Align Technology Inc. (NASDAQ:ALGN)

Debt Ratios Including Operating Lease Liability

The debt to equity ratio including operating lease liability remained consistently low across all reported quarters, starting at 0.05 in mid-2019 and gradually declining to a stable 0.03 from late 2019 through the latest quarter in September 2023. This stability suggests a minimal reliance on debt relative to equity.

Similar trends are observed in the debt to capital ratio including operating lease liability. It began at 0.05 in June 2019, decreasing to 0.03 and maintaining that level through September 2023. This consistency implies that debt forms a small portion of the company's total capital base.

The debt to assets ratio including operating lease liability also followed a similar pattern. Initially reported at 0.03 in June 2019, it declined to 0.01 by early 2020, then slightly increased to and stabilized around 0.02 from 2021 onwards. This indicates a low proportion of debt used to finance the company’s assets.

Financial Leverage

Financial leverage showed moderate fluctuations over the entire period. Beginning at 1.58 in March 2018, it increased gradually, peaking at 1.86 by December 2019. This rise indicates growing use of debt or other liabilities to finance assets relative to equity during this time.

From early 2020, financial leverage decreased sharply to 1.39 by March 2020, before slowly climbing back upward to 1.66 by September 2023. This pattern reveals an initial reduction in leverage followed by a steady re-accumulation, but overall leverage levels remain moderate and well below 2.0.

The relatively low and stable debt ratios, combined with moderate financial leverage, suggest a conservative capital structure with careful management of debt exposure throughout the periods analyzed.

Stockholders’ Equity

The stockholders’ equity shows a general upward trend from March 31, 2018, to September 30, 2023. Starting at approximately 1.13 billion USD in early 2018, equity steadily increased with some fluctuations until the end of 2019. A notable jump occurred between December 31, 2019, and March 31, 2020, where equity more than doubled from around 1.35 billion USD to approximately 2.85 billion USD. This elevated level of equity continued to rise steadily through 2021, peaking near 3.62 billion USD at the end of 2021. Following this, the equity experienced minor fluctuations during 2022 and 2023 but remained within a range of approximately 3.48 to 3.80 billion USD. The overall long-term trend indicates significant growth in stockholders’ equity over the period under review.

Total Debt

Total debt data is not available for any of the periods, preventing analysis of the company's leverage based on this metric. The absence of reported debt values suggests either the company did not hold significant debt or chose not to disclose these figures during the timeframes provided.

Debt to Equity Ratio

The debt to equity ratio is unavailable due to missing data on total debt. Without this ratio, it is not possible to assess the relationship between the company's debt and equity or the changes in its financial leverage over time.

Total Debt (including operating lease liability)

The total debt values are not reported before the periods starting in March 2019. Beginning at approximately $59.3 million in March 2019, total debt showed a general downward trend through December 2019, reaching around $43.4 million. In 2020, debt levels increased overall but fluctuated between roughly $50.6 million and $64.5 million. The year 2021 saw a further rise, peaking at about $104.9 million in June before slightly declining towards the end of the year. Throughout 2022 and the first three quarters of 2023, total debt remained relatively stable, maintaining levels around $96.7 million to $104.7 million, indicating a possible stabilization in leverage after the prior increase.

Stockholders’ Equity

The equity figures began at approximately $1.13 billion in March 2018 and displayed a generally upward trajectory through subsequent periods. Moderate increases were observed through 2018 and 2019, followed by a sharp rise in early 2020, with equity tripling to about $2.85 billion by March 2020. From 2020 onward, equity continued an upward trend, reaching about $3.62 billion by December 2021. A slight dip occurred during 2022, but levels rebounded towards the end of the period analyzed, ending near $3.8 billion in September 2023. This overall pattern reflects substantial growth in shareholder investment or retained earnings over the period.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio data appear beginning in March 2019 at around 0.05. The ratio dropped steadily to approximately 0.02 by mid-2020, reflecting a reduction in leverage relative to equity growth. From that point forward, the ratio stabilized between 0.02 and 0.03 through 2023, indicating that despite an increase in total debt towards the later periods, equity growth maintained a balance, keeping leverage at relatively low and stable levels. This suggests prudent management of debt in relation to equity.

The available financial data primarily focuses on the total capital of the subject entity over a series of quarterly periods from March 31, 2018, through September 30, 2023. Total debt and debt to capital ratio data are not provided, which limits the scope of leverage-related analysis.

Total Capital

The total capital exhibits a generally upward trend throughout the observed timeframe. Starting at 1,127,460 thousand US dollars in the first quarter of 2018, it experiences fluctuations but grows substantially to reach 3,801,866 thousand US dollars by the third quarter of 2023.

Notable growth occurs between the quarter ending December 31, 2019 (approximately 1,346,169 thousand US dollars), and the subsequent quarters of 2020, where total capital markedly increases above 3 million thousand US dollars. This suggests a significant capital infusion or retained earnings accumulation during this period.

Following this substantial increase, total capital continues to rise modestly, with occasional minor setbacks, indicating continued but more stable growth.

The overall pattern suggests a strong capital base expansion over five and a half years, reflecting potential company growth, asset accumulation, or increased equity financing.

Data Limitations

Because there are no data points for total debt or debt to capital ratio, an analysis on financial leverage, debt management, or capital structure cannot be performed. This restricts the evaluation to capital size and growth trends exclusively.

The financial data indicates a generally stable but slightly increasing total debt level from 2019 through 2023. Beginning with debt values around $59 million in early 2019, the amounts fluctuate moderately but exhibit an upward trend, reaching values near $104 million in late 2023. This suggests a gradual increase in the company’s leverage over the observed periods.

Total capital shows a notable increase over the entire timeframe. Starting from approximately $1.13 billion in early 2018, it rises steadily, with an accelerated growth phase observed around 2020, where total capital jumps to over $2.9 billion and continues increasing beyond $3.9 billion by Q3 2023. This significant expansion indicates substantial growth in the company’s funding base, possibly reflecting increased equity, reinvested earnings, or other capital inflows.

The debt-to-capital ratio remains low and relatively stable throughout the periods for which it is available, fluctuating narrowly between 0.02 and 0.05. This low ratio implies that debt constitutes a small portion of the company's total capital structure, suggesting prudent leverage management and a strong equity base.

Overall, the company appears to maintain conservative debt levels relative to its expanding capital base, reflecting a strategic approach to financing that supports growth while managing financial risk. The steady increase in total capital combined with stable, low debt ratios points to a strengthening financial position over the observed quarters.

Total debt (including operating lease liability):

Gradual increase from around $59 million in early 2019 to approximately $104 million by late 2023, with moderate fluctuations.

Total capital (including operating lease liability):

Consistent growth from $1.13 billion in 2018 to nearly $3.9 billion by Q3 2023, with significant acceleration occurring in 2020.

Debt to capital ratio:

Maintained a low and stable range of 0.02 to 0.05, indicating low leverage relative to capital expansion.

The data reveals a clear trend in the total assets over the periods from March 31, 2018, to September 30, 2023. Total assets have exhibited a consistent upward trajectory throughout the timeframe, indicating growth in the company's asset base.

Specifically, total assets increased steadily from approximately 1.78 billion US dollars as of March 31, 2018, to over 6.31 billion US dollars by September 30, 2023. This represents more than a threefold increase in total assets over the span of about five and a half years.

There are notable periods of larger increments, particularly from March 31, 2019, to March 31, 2020, and again from March 31, 2020, to March 31, 2021. During these intervals, the asset base grew from roughly 2.23 billion to 3.96 billion and then to approximately 5.07 billion US dollars, signaling accelerated asset accumulation. Subsequent quarters show more moderate but steady asset growth.

Data for total debt and debt to assets ratio have not been provided, thereby limiting the ability to assess the company's leverage or capital structure trends. The absence of these figures restricts the capacity to evaluate the relationship between the company’s liabilities and assets and to comment on financial risk from debt levels.

In summary, the key observable trend is a substantial and sustained increase in total assets over the analyzed periods, reflecting a growth phase or accumulation of resources by the company. The lack of debt-related data constrains further analysis regarding financial leverage and risk exposure.

Total Debt (including operating lease liability)

The total debt figures, starting from the first available data in March 2019, exhibit fluctuations over the observed periods. Initially, total debt decreased from a high of approximately 59,307 thousand US dollars in March 2019 to around 43,365 thousand US dollars by September 2019. This was followed by a moderate increase towards the end of 2019 and early 2020. Subsequently, the debt levels increased again, peaking at approximately 104,983 thousand US dollars by June 2022. Thereafter, the debt remained relatively stable with minor decreases and increases, ending at approximately 98,523 thousand US dollars in September 2023. Overall, the trend indicates an increase in total debt over the long term, with notable volatility in certain quarters.

Total Assets

Total assets show a strong upward trajectory throughout the entire period from March 2018 to September 2023. Beginning at approximately 1,782,731 thousand US dollars in early 2018, total assets increased steadily each quarter, reaching over 6,318,551 thousand US dollars by September 2023. There is a noticeable acceleration in asset growth starting around March 2020, coinciding with the period when assets nearly doubled within a year. This sustained increase suggests significant investment, acquisitions, or growth in asset base over the years.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio remains consistently low across all periods, varying between 0.01 and 0.03. Specifically, the ratio was around 0.03 during early 2019 and declined to about 0.01 for most of 2020 and 2021. In 2022 and mid-2023, it slightly increased to approximately 0.02 but remained low overall. This indicates that despite increases in total debt, the company maintains a strong asset base relative to its debt, suggesting a conservative leverage position with low financial risk from debt.

Summary of Financial Trends

Over the analyzed periods, total assets show a robust growth pattern, nearly tripling from 2018 to 2023, demonstrating strong expansion. Total debt, while showing some quarter-to-quarter variability, increased notably from 2019 onward but remained modest relative to the asset base. The low and stable debt to assets ratio highlights prudent financial management and low leverage risk. These factors combined suggest that the company is expanding its asset base substantially while keeping debt levels manageable, which could support ongoing growth initiatives without excessive financial risk.

Total Assets

The total assets demonstrated a steady increase from March 2018 through December 2019, rising from approximately $1.78 billion to $2.50 billion. A significant jump occurred between December 2019 and March 2020, where total assets increased sharply to nearly $3.96 billion, and this upward trajectory continued through the subsequent periods, reaching approximately $6.32 billion by September 2023. Despite minor fluctuations around mid-2022, the overall trend reflects robust asset growth over the entire period.

Stockholders’ Equity

Stockholders’ equity followed a pattern similar to total assets, increasing gradually from about $1.13 billion in March 2018 to $1.35 billion by December 2019. In the subsequent quarter, equity surged dramatically to $2.85 billion in March 2020, aligning with the increase in total assets. From this point onward, equity steadily grew, peaking near $3.80 billion in September 2023. There were some small declines in certain quarters, particularly between March 2022 and March 2023, but the general direction indicates consistent equity growth.

Financial Leverage

Financial leverage, defined as the ratio of total assets to stockholders’ equity, exhibited moderate fluctuations throughout the reporting periods. Initially, it ranged between 1.57 and 1.86 from 2018 to the end of 2019. Following the surge in equity and assets in early 2020, the leverage ratio reduced noticeably to 1.39 in March 2020, indicating a relative increase in equity compared to assets. Subsequently, the leverage ratio displayed a gradual upward tendency, reaching about 1.66 by September 2023. This trend suggests a slight increase in reliance on debt or liabilities relative to equity, but the ratio remained consistently below the pre-2020 peak levels.