Align Technology, Inc. — Earnings Quality Grade C
ALGN · Healthcare
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 100 days, change +9 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 0.9%, CFFO -19.6%. Cash follows revenue
Expense Quality
Inventory -11.0% vs COGS 10.3%. Normal
CapEx growth -11.4% vs revenue 0.9%. Normal
SG&A/Gross Profit = 64.8%. Normal
Gross margin 67.2%, change -2.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.45. Profits backed by cash
FCF $0.5B, FCF/NI = 1.20
Accruals ratio = -2.9%. Low accruals
Cash $1.1B covers debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 14% of equity. Manageable
Debt/EBITDA = 0.1x. Healthy
Other assets 18.7% vs revenue 0.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -2.52 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09