Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Align Technology Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial ratios exhibit several notable trends over the analyzed periods. The net fixed asset turnover ratio, starting from March 2018, demonstrates generally stable values around 3.6 to 3.8 through the end of 2019, followed by a gradual decline from 3.63 in June 2020 to a low point near 2.92 in June and September 2023, before a slight recovery to 3.0 in the most recent quarter.
When including operating lease right-of-use assets, the net fixed asset turnover ratio follows a similar downward trajectory, beginning at 3.77 in early 2018, dipping more sharply from the middle of 2020, and reaching a trough of approximately 2.66 to 2.74 in late 2023. This suggests asset utilization efficiency has weakened, particularly when lease assets are factored in.
Total asset turnover shows a distinctive pattern with nearly stable values close to 0.96 from 2018 through early 2020, followed by a steep decline to 0.51 by December 2020. Subsequently, there is a modest recovery phase that peaks around 0.69 in late 2021 and early 2022 before trending downward again to about 0.60 in the latest periods. This indicates a reduced effectiveness in generating sales from total assets during the COVID-19 pandemic period, with some recovery and recent stabilization at lower levels.
Equity turnover initially rises from 1.57 in early 2018 to 1.79 by the end of 2019, showing improvement in using shareholders' equity to generate revenue. However, a marked decline occurs in 2020, dropping to near 0.75, followed by a rebound reaching above 1.1 in late 2021 and early 2022. The ratio then stabilizes slightly above 1.0 but shows a modest downward drift, ending near 1.0 in the most recent quarter. This pattern may reflect fluctuations in equity base dynamics and revenue generation capacity linked to broader business and market conditions.
Overall, the data indicates a significant impact on asset efficiency and turnover ratios aligning with the onset of market disruptions around 2020, with various degrees of recovery thereafter. The declines in fixed asset and total asset turnover ratios suggest challenges in maintaining asset productivity, while the equity turnover shows more resilience with partial recovery and stabilization levels following an initial downturn.
- Net Fixed Asset Turnover
- Stable at about 3.6-3.8 through 2019; declines markedly post-2020; slight recovery in late 2023.
- Net Fixed Asset Turnover (including operating leases)
- Parallels the standard fixed asset turnover trend but with a sharper and more pronounced decline through 2023.
- Total Asset Turnover
- Stable near 0.96 pre-2020; significant drop through 2020; gradual recovery to ~0.69 in 2021-2022; modest decline thereafter.
- Equity Turnover
- Increases from 1.57 to 1.79 by end-2019; sharp fall to 0.75 during 2020; recovery above 1.1 in 2021-2022; mild downward trend to approximately 1.0 afterwards.
Net Fixed Asset Turnover
Align Technology Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net revenues | 960,214) | 1,002,173) | 943,147) | 901,515) | 890,348) | 969,553) | 973,219) | 1,031,099) | 1,015,906) | 1,010,808) | 894,771) | 834,520) | 734,144) | 352,314) | 550,963) | 649,787) | 607,341) | 600,697) | 548,971) | 534,020) | 505,289) | 490,259) | 436,924) | |||||||
| Property, plant and equipment, net | 1,268,388) | 1,279,042) | 1,262,815) | 1,231,855) | 1,199,880) | 1,182,444) | 1,140,922) | 1,081,926) | 1,002,769) | 960,852) | 763,870) | 734,721) | 703,657) | 668,951) | 663,491) | 631,730) | 606,581) | 599,611) | 575,267) | 521,329) | 491,630) | 447,933) | 400,528) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 3.00 | 2.92 | 2.93 | 3.03 | 3.22 | 3.37 | 3.53 | 3.65 | 3.75 | 3.62 | 3.69 | 3.36 | 3.25 | 3.23 | 3.63 | 3.81 | 3.78 | 3.65 | 3.61 | 3.77 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | 4.18 | 4.26 | 4.47 | 4.76 | 5.18 | 5.17 | 5.00 | 4.81 | 4.79 | 4.56 | 4.23 | 3.83 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 39.41 | 36.19 | 36.14 | 36.07 | 36.22 | 36.17 | 35.81 | 34.94 | 34.54 | 34.17 | 34.94 | 34.69 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 2.23 | 2.35 | 2.49 | 2.62 | 2.73 | 2.83 | 3.00 | 3.04 | 3.16 | 3.13 | 2.86 | 2.76 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 5.66 | 5.82 | 5.88 | 5.85 | 6.05 | 6.13 | 6.12 | 5.77 | 5.56 | 5.64 | 5.72 | 5.99 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 32.18 | 31.60 | 31.35 | 31.81 | 33.07 | 32.33 | 32.16 | 31.81 | 31.77 | 30.94 | 30.76 | 29.64 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Net fixed asset turnover
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Property, plant and equipment, net
= (960,214 + 1,002,173 + 943,147 + 901,515)
÷ 1,268,388 = 3.00
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company’s operating and asset management performance over the observed periods.
- Net Revenues
- Net revenues show an overall upward trend from March 2018 to December 2021, peaking in the fourth quarter of 2021 at approximately 1,031,099 thousand US dollars. Following this peak, revenues experienced a decline during 2022, reaching a low of 890,348 thousand US dollars in the third quarter of 2022. However, a moderate recovery is evident in 2023, with revenues increasing again to above 960,000 thousand US dollars by the second quarter of 2023, though not surpassing the previous peak levels.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment consistently grew throughout the entire period, rising from 400,528 thousand US dollars in March 2018 to a high of approximately 1,272,042 thousand US dollars by September 2023. The data indicates continued investment in fixed assets, suggesting expansion or upgrade of production capacity or infrastructure over these years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio exhibits a declining trend from the end of 2018 through 2023. It started at around 3.77 in September 2018, then gradually decreased to a low point near 2.92 in September 2023. This suggests that revenue generated per unit of fixed assets has diminished over time, indicating either a lower efficiency in asset utilization or that asset growth has outpaced revenue growth.
In summary, while net revenues generally increased for several years before facing a downturn and partial recovery, the company’s investment in fixed assets steadily expanded. The decline in the fixed asset turnover ratio implies that the growth in assets has not been proportionally matched by revenue increases, potentially pointing to decreasing efficiency or a lag in realizing returns from recent investments.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Align Technology Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (960,214 + 1,002,173 + 943,147 + 901,515)
÷ 1,387,354 = 2.74
The analysis of the financial data reveals several key trends and patterns over the periods presented. Net revenues exhibited a general upward trajectory from the beginning of the period until the end of 2019. However, a sharp decline occurred in early 2020, likely reflecting external economic disruptions, followed by a recovery and growth phase through 2021. From early 2022 onwards, net revenues demonstrated a somewhat fluctuating pattern with minor declines and recoveries but remained below the peak levels observed in late 2021 and early 2023.
Regarding property, plant, and equipment (net), a consistent and strong growth trend is evident across all periods. The asset base nearly tripled from the beginning of 2018 through late 2023, indicating significant investment and expansion in fixed assets. This continuous increase suggests a strategic emphasis on capacity or infrastructure enhancement, possibly supporting anticipated or realized growth in operations.
The net fixed asset turnover ratio, which measures efficiency in generating revenues from fixed assets, shows a declining trend across the periods with some fluctuations. Initially, the ratio was relatively high at around 3.77 but gradually decreased, reaching a low near 2.66 by the third quarter of 2023. This decline in turnover ratio alongside the rise in fixed assets implies that revenue growth did not keep pace proportionally with asset expansion, indicating reduced asset utilization or efficiency in recent years.
- Net Revenues
- Displayed growth from 2018 through 2019, dropped markedly in early 2020, recovered strongly by the end of 2020 and into 2021, and then fluctuated with minor decreases and increases through 2023.
- Property, Plant, and Equipment, Net
- Continued growth throughout all periods, indicating ongoing investment and expansion in fixed assets, rising steadily from $400 million in early 2018 to over $1.38 billion by late 2023.
- Net Fixed Asset Turnover Ratio
- Started relatively high in 2018 and 2019, but exhibited a gradual decline through subsequent periods, falling from approximately 3.77 to around 2.66 by late 2023, suggesting diminished efficiency in utilizing fixed assets to generate revenue.
Total Asset Turnover
Align Technology Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net revenues | 960,214) | 1,002,173) | 943,147) | 901,515) | 890,348) | 969,553) | 973,219) | 1,031,099) | 1,015,906) | 1,010,808) | 894,771) | 834,520) | 734,144) | 352,314) | 550,963) | 649,787) | 607,341) | 600,697) | 548,971) | 534,020) | 505,289) | 490,259) | 436,924) | |||||||
| Total assets | 6,318,551) | 6,144,550) | 5,901,448) | 5,947,947) | 5,912,802) | 5,810,119) | 5,943,414) | 5,942,110) | 5,650,109) | 5,395,568) | 5,069,782) | 4,829,683) | 4,415,091) | 4,025,857) | 3,964,840) | 2,500,702) | 2,350,380) | 2,346,017) | 2,234,430) | 2,052,458) | 1,928,405) | 1,916,589) | 1,782,731) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Total asset turnover1 | 0.60 | 0.61 | 0.63 | 0.63 | 0.65 | 0.69 | 0.68 | 0.67 | 0.66 | 0.64 | 0.56 | 0.51 | 0.52 | 0.54 | 0.61 | 0.96 | 0.97 | 0.93 | 0.93 | 0.96 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | 0.55 | 0.55 | 0.56 | 0.59 | 0.62 | 0.61 | 0.60 | 0.57 | 0.57 | 0.55 | 0.51 | 0.48 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.52 | 1.51 | 1.46 | 1.51 | 1.48 | 1.47 | 1.42 | 1.41 | 1.35 | 1.33 | 1.29 | 1.39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 0.47 | 0.48 | 0.49 | 0.48 | 0.46 | 0.44 | 0.43 | 0.42 | 0.42 | 0.42 | 0.39 | 0.39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 0.33 | 0.33 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.32 | 0.29 | 0.29 | 0.30 | 0.32 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 1.26 | 1.23 | 1.18 | 1.31 | 1.29 | 1.32 | 1.33 | 1.34 | 1.30 | 1.29 | 1.27 | 1.30 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Total asset turnover
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Total assets
= (960,214 + 1,002,173 + 943,147 + 901,515)
÷ 6,318,551 = 0.60
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues demonstrated a generally increasing trend from March 2018 through December 2019, rising steadily from approximately $437 million to nearly $650 million. During 2020, a notable volatility is observed, with revenues dipping significantly in June 2020 to about $352 million, likely reflecting an unusual event impacting performance. Subsequently, there was a sharp recovery and growth through the remaining quarters of 2020 and into 2021, peaking at over $1 billion in December 2021. However, from early 2022 to mid-2023, net revenues showed a declining or stabilizing pattern, fluctuating around $900 million to $1 billion, with no clear upward or downward momentum.
- Total Assets
- Total assets increased consistently and substantially over the entire period. Starting from roughly $1.78 billion in March 2018, assets more than tripled, reaching over $6.3 billion by September 2023. This steady growth highlights ongoing asset accumulation, possibly through investments, acquisitions, or retained earnings, indicating a significant expansion of the company's asset base.
- Total Asset Turnover
- The total asset turnover ratio was relatively stable around 0.93 to 0.97 during late 2018 and 2019, implying efficient utilization of assets to generate sales. From March 2020 onwards, this ratio declined sharply to approximately 0.51 to 0.54 through the end of 2020, signaling a reduced efficiency in asset usage, potentially due to the rapid increase in total assets coupled with volatility in revenues. In 2021 and beyond, the ratio gradually improved but remained below pre-2020 levels, settling around 0.6 to 0.69, which suggests a moderate recovery in asset utilization efficiency. Despite this improvement, asset turnover has not returned to historic peaks, implying that asset growth has outpaced revenue gains during this period.
Equity Turnover
Align Technology Inc., equity turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net revenues | 960,214) | 1,002,173) | 943,147) | 901,515) | 890,348) | 969,553) | 973,219) | 1,031,099) | 1,015,906) | 1,010,808) | 894,771) | 834,520) | 734,144) | 352,314) | 550,963) | 649,787) | 607,341) | 600,697) | 548,971) | 534,020) | 505,289) | 490,259) | 436,924) | |||||||
| Stockholders’ equity | 3,801,866) | 3,638,301) | 3,480,049) | 3,601,358) | 3,694,622) | 3,599,081) | 3,666,852) | 3,622,714) | 3,516,762) | 3,384,410) | 3,393,576) | 3,233,865) | 3,033,471) | 2,845,045) | 2,852,989) | 1,346,169) | 1,305,549) | 1,373,682) | 1,255,704) | 1,252,891) | 1,192,983) | 1,218,959) | 1,127,460) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Equity turnover1 | 1.00 | 1.03 | 1.06 | 1.04 | 1.05 | 1.11 | 1.10 | 1.09 | 1.07 | 1.03 | 0.83 | 0.76 | 0.75 | 0.76 | 0.84 | 1.79 | 1.75 | 1.59 | 1.66 | 1.57 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | 1.07 | 1.08 | 1.12 | 1.19 | 1.26 | 1.25 | 1.26 | 1.20 | 1.23 | 1.19 | 1.11 | 1.06 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 4.36 | 4.31 | 4.27 | 4.29 | 4.22 | 4.13 | 3.97 | 3.80 | 3.71 | 3.65 | 3.65 | 3.64 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 0.55 | 0.56 | 0.57 | 0.56 | 0.53 | 0.50 | 0.49 | 0.48 | 0.48 | 0.48 | 0.45 | 0.45 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 0.60 | 0.59 | 0.59 | 0.60 | 0.60 | 0.61 | 0.61 | 0.59 | 0.55 | 0.56 | 0.56 | 0.57 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 4.22 | 4.19 | 4.10 | 4.14 | 4.19 | 4.18 | 4.06 | 3.98 | 3.95 | 3.92 | 3.94 | 3.90 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Equity turnover
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Stockholders’ equity
= (960,214 + 1,002,173 + 943,147 + 901,515)
÷ 3,801,866 = 1.00
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's performance and financial position over the observed periods.
- Net Revenues
- Net revenues exhibited a generally upward trajectory from March 2018 through December 2019, rising from approximately $437 million to nearly $650 million. However, there was a significant decline in the first half of 2020, with revenues dropping to around $352 million in June 2020, which may reflect external disruptions during this period. Subsequently, revenues recovered strongly in the second half of 2020 and into 2021, reaching a peak of nearly $1.03 billion by December 2021. Following this peak, revenues slightly fluctuated but maintained a generally high level, hovering around $900 million to just over $1 billion through mid-2023. This pattern indicates resilience and growth after an initial downturn.
- Stockholders’ Equity
- Stockholders’ equity showed steady growth from March 2018, starting at approximately $1.13 billion, to a plateau in late 2019 around $1.35 billion. A notable increase occurred in early 2020, more than doubling equity to approximately $2.85 billion by March 2020. From this point, equity continued to increase steadily, reaching about $3.23 billion by December 2020 and advancing consistently to approximately $3.8 billion by September 2023. This upward trend indicates strengthened financial stability and accumulated retained earnings or capital infusions over time.
- Equity Turnover
- The equity turnover ratio, which measures how effectively equity is used to generate revenues, shows variation across the observed quarters. Early data are missing, but from March 2019 onward, the ratio ranged from 1.57 to 1.79 through December 2019, suggesting strong use of equity to generate revenues during this period. There is a sharp decline in early 2020, with equity turnover falling below 1, reaching 0.75 to 0.76 during much of 2020. This decline corresponds with the period of revenue reduction and significant equity increase, thus diluting turnover efficiency temporarily. Starting in 2021, the ratio gradually improved, rising from 0.83 in March 2021 to about 1.11 by December 2022, before marginally decreasing to approximately 1.00 by September 2023. This trend suggests a recovery in operational efficiency relative to equity employed.
In summary, the data depict a company experiencing strong growth in revenues and equity from 2018 through 2019, a challenging period in early 2020 followed by substantial recovery and continued expansion through 2021 and beyond. The temporary dip in equity turnover during 2020 aligns with unusual shifts in revenues and equity, but the metric's recovery afterward points toward improving capital utilization efficiency. The overall financial position strengthened over the period, with higher equity indicating increased resources to support business operations and growth.