Altair Engineering Inc (ALTR)

Days of sales outstanding (DSO)

		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
Receivables turnover		4.17	2.94	4.47	4.22	4.03	3.10	4.11	4.70	4.25	3.53	5.23	4.99	4.20	3.68	4.78	5.29	4.93	4.09	4.67	4.70
DSO	days	87.45	124.29	81.59	86.58	90.62	117.60	88.78	77.64	85.82	103.34	69.85	73.19	86.87	99.24	76.40	68.94	74.05	89.14	78.13	77.61

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.17
= 87.45

Days Sales Outstanding (DSO) is a critical financial ratio that indicates the average number of days a company takes to collect revenue after making a sale. A lower DSO value is generally preferable as it signifies quicker and more efficient collections.

Analyzing the DSO trend for Altair Engineering Inc over the past 8 quarters reveals fluctuations in the company's collection efficiency. In the most recent quarter ending on March 31, 2024, Altair Engineering Inc had a DSO of 87.45 days, which was an improvement compared to the previous quarter's DSO of 124.29 days.

Historically, Altair Engineering Inc's DSO has experienced some variability, with peaks in collection days seen in the quarters ending December 31, 2023 (124.29 days) and December 31, 2022 (117.60 days). Conversely, lower DSO values were observed in the quarters ending September 30, 2021 (69.85 days) and June 30, 2020 (68.94 days).

This fluctuation in DSO could indicate changes in Altair Engineering Inc's credit policies, customer payment behavior, or the efficiency of its account receivables management. It is essential for the company to closely monitor and manage its DSO to ensure timely collections, improve cash flow, and maintain a healthy liquidity position.