Altair Engineering Inc (ALTR)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	132,432	128,226	127,297	119,949	121,791	126,472	125,295	124,021	122,889	121,832	125,424	127,847	129,666	129,560	127,095	120,230	121,305	125,564	128,269	134,211
Inventory	US$ in thousands	—	—	-20,782	0	—	0	0	0	—	0	0	—	—	0	0	0	0	2,700	2,800	1,800
Inventory turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	46.51	45.81	74.56

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $132,432K ÷ $—K
= —

Altair Engineering Inc's inventory turnover ratio indicates how efficiently the company is managing its inventory. The inventory turnover for Altair has shown a decreasing trend over the past few periods.

As of March 31, 2020, the inventory turnover was 74.56, reflecting a high level of inventory turnover, which suggests that the company was efficiently selling its inventory. However, the ratio decreased to 45.81 as of June 30, 2020, and remained relatively stable around 45-46 in the subsequent periods.

The fact that the inventory turnover ratio has been stagnant or not available for the later periods indicates that there may have been challenges in managing inventory efficiently, potentially leading to excess inventory levels or slower sales.

Altair should closely monitor its inventory turnover ratio to ensure effective inventory management practices are in place to avoid potential issues such as obsolescence, storage costs, or cash flow constraints due to tied-up capital in excess inventory. Further analysis and comparison with industry benchmarks could provide additional insights into Altair's inventory management performance.