Altair Engineering Inc (ALTR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	399,716	403,506	377,766	336,787	132,599
Payables	US$ in thousands	8,995	10,434	6,647	8,594	8,585
Payables turnover		44.44	38.67	56.83	39.19	15.45

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $399,716K ÷ $8,995K
= 44.44

Altair Engineering Inc's payables turnover ratio over the past five years has shown fluctuating trends. The payables turnover ratio indicates how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable during a period.

In 2023, Altair Engineering Inc's payables turnover ratio increased to 44.44, indicating that the company was able to convert its accounts payable into cash or credit purchases more frequently compared to the previous year. This could suggest improved efficiency in managing its trade payables.

In 2022, the payables turnover ratio was 38.67, showing a slight decrease from the previous year. While the ratio decreased, it still indicates that the company was able to efficiently manage its trade payables during that period.

The payables turnover ratio spiked to 56.83 in 2021, reflecting a significant improvement in managing accounts payable. This increase suggests that Altair Engineering Inc was able to pay off its suppliers more frequently in relation to its cost of goods sold.

In 2020, the payables turnover ratio was 39.19, showing a moderate decrease compared to 2021. This indicates that the company's efficiency in managing trade payables slightly declined during that year.

In 2019, Altair Engineering Inc had a payables turnover ratio of 15.45, which was the lowest among the five years analyzed. This lower ratio suggests that the company took longer to pay off its trade payables in relation to its cost of goods sold.

Overall, although there have been fluctuations in Altair Engineering Inc's payables turnover ratio over the past five years, the general trend indicates that the company has been effectively managing its accounts payable by paying off its suppliers in a timely manner in relation to its cost of goods sold.