Altair Engineering Inc (ALTR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.24 | 1.63 | 1.95 | 4.66 | 2.52 |
Altair Engineering Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.
1. Inventory Turnover: Data for inventory turnover is not available for the years provided. The lack of this information makes it difficult to assess how quickly Altair Engineering is able to sell its inventory over the specified years.
2. Receivables Turnover: Data for receivables turnover is not available for the years provided. Without this information, we cannot evaluate how efficiently the company collects outstanding payments from its customers.
3. Payables Turnover: Data for payables turnover is not available for the years provided. This ratio typically indicates how quickly a company is paying off its suppliers, but without the information, we cannot determine Altair Engineering's payment behavior.
4. Working Capital Turnover: The working capital turnover ratio indicates how effectively a company utilizes its working capital to generate sales. Altair Engineering's working capital turnover has fluctuated over the stated years, with values of 2.52, 4.66, 1.95, 1.63, and 2.24 for 2020, 2021, 2022, 2023, and 2024, respectively. The decrease in 2022 and 2023 may indicate a less efficient use of working capital during those years, while the increase in 2024 suggests a potential improvement in efficiency.
In conclusion, while we lack specific data for inventory turnover, receivables turnover, and payables turnover, Altair Engineering's working capital turnover ratio has shown variability over the years, indicating fluctuations in the company's efficiency in using its working capital to generate sales.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of Altair Engineering Inc, measured by Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, are not provided in the data. These ratios are essential for evaluating how efficiently the company manages its inventory, collects receivables, and pays its suppliers. Without the specific values for these ratios for the years 2020 to 2024, it is difficult to assess Altair Engineering's operational efficiency and liquidity position based on these activity metrics. To conduct a comprehensive analysis and provide insights into the company's working capital management and operational effectiveness, specific data on these activity ratios would be necessary.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 15.25 | 7.72 | 12.93 |
| Total asset turnover | 0.46 | 0.45 | 0.47 | 0.46 | 0.57 |
Altair Engineering Inc's fixed asset turnover ratio has exhibited fluctuations over the five-year period.
The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. In 2020, the ratio was significantly high at 12.93, indicating that Altair Engineering efficiently generated sales using its fixed assets. However, in 2021, this ratio decreased to 7.72, suggesting a reduction in the efficiency of utilizing fixed assets to generate revenue. Subsequently, in 2022, the fixed asset turnover ratio increased to 15.25, indicating that the company improved its efficiency in utilizing fixed assets to generate sales.
Interestingly, data for 2023 and 2024 are not available, which makes it challenging to assess the trend in more recent years.
Moving on to the total asset turnover ratio, which measures how effectively the company is utilizing its total assets to generate sales, Altair Engineering Inc's performance can be assessed. The total asset turnover ratio decreased from 0.57 in 2020 to 0.46 in 2021. This decline suggests that the company may be less efficient in using its total assets to generate revenue.
Although there was a marginal increase in the total asset turnover ratio in 2022 to 0.47, the ratio remained relatively consistent in 2023 and 2024 at 0.45 and 0.46, respectively. Overall, Altair Engineering Inc's total asset turnover ratio indicates a moderate level of efficiency in utilizing total assets to generate sales over the five-year period under consideration.