Altair Engineering Inc (ALTR)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	665,788	612,701	572,221	532,179	469,921
Property, plant and equipment	US$ in thousands	—	—	37,517	68,972	36,332
Fixed asset turnover		—	—	15.25	7.72	12.93

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $665,788K ÷ $—K
= —

Altair Engineering Inc's fixed asset turnover ratio has shown significant fluctuations over the years. The ratio decreased from 12.93 in December 31, 2020, to 7.72 in December 31, 2021, indicating a decline in the company's ability to generate sales from its fixed assets during that period.

However, there was a notable improvement in the fixed asset turnover ratio in December 31, 2022, where it spiked to 15.25. This increase suggests that Altair Engineering Inc was able to generate a higher level of sales using its fixed assets efficiently during that year, which could be a positive sign of operational effectiveness and productivity.

The lack of data for December 31, 2023, and December 31, 2024 makes it difficult to assess the trend beyond 2022. It is essential for the company to maintain consistent and efficient utilization of its fixed assets to sustain or improve its fixed asset turnover ratio in the future.