What is Align Technology Return-on-Tangible-Asset?
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Align Technology's annualizedNet Income for the quarter that ended in Dec. 2024 was $415 Mil. Align Technology's average total tangible assets for the quarter that ended in Dec. 2024 was $5,724 Mil. Therefore, Align Technology's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2024 was 7.25%.
The historical rank and industry rank for Align Technology's Return-on-Tangible-Asset or its related term are showing as below:
ALGN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.66 Med: 15.62 Max: 53.17
Current: 7.47
During the past 13 years, Align Technology's highest Return-on-Tangible-Asset was 53.17%. The lowest was 6.66%. And the median was 15.62%.
ALGN's Return-on-Tangible-Asset is ranked better than 75.81% of 868
companies
in the Medical Devices & Instruments industry
Industry Median: -1.17
vs ALGN: 7.47
Align Technology Return-on-Tangible-Asset Historical Data
The historical data trend for Align Technology's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Align Technology's Return-on-Tangible-Asset
For the Medical Instruments & Supplies subindustry, Align Technology's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Align Technology's Return-on-Tangible-Asset Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Align Technology's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2024) net income data.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Align Technology Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Align Technology's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans, and iTero scans make up over half of these scans.
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