Altair Engineering Inc (ALTR)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	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
Inventory turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	123.98	120.31	190.08	119.27	70.29	65.45
DOH	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	2.94	3.03	1.92	3.06	5.19	5.58

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Altair Engineering Inc's days of inventory on hand (DOH) fluctuated over the past few quarters. The trend indicates a decrease in inventory holding period from 5.58 days as of September 30, 2019, to 3.03 days as of December 31, 2023, and further improvements since then.

The downward trend in DOH suggests that Altair Engineering has been managing its inventory more efficiently, possibly by optimizing production processes, improving demand forecasting, or implementing better inventory management practices. A lower DOH indicates that the company is selling its inventory more quickly, which can lead to reduced holding costs and potential working capital benefits.

However, the sudden decrease from 3.06 days on March 31, 2020, to 1.92 days on June 30, 2020, followed by an increase to 5.19 days on September 30, 2020, calls for further investigation into the underlying reasons for these fluctuations. Such significant variations in DOH could signal issues with inventory management, changes in demand patterns, or disruptions in the supply chain.

Overall, while the improvement in Altair Engineering's DOH is a positive indicator of efficient inventory management, continued monitoring and closer analysis of the factors impacting inventory levels will be essential to sustain and build upon this positive trend.