Altair Engineering Inc (ALTR)
Activity ratios
Short-term
Turnover ratios
| 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 |
| 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 |
| Payables turnover | 61.06 | 44.44 | 79.70 | 87.89 | 67.96 | 38.67 | 63.16 | 77.38 | 62.17 | 56.82 | 75.52 | 55.60 | 51.81 | 39.19 | 61.84 | 70.47 | 60.82 | 33.34 | 28.84 | 28.36 |
| Working capital turnover | 1.41 | 1.62 | 2.04 | 2.19 | 2.30 | 1.92 | 2.01 | 1.47 | 4.24 | 4.54 | 2.20 | 18.77 | 24.54 | 2.46 | 2.17 | 2.18 | 2.23 | 2.30 | 2.05 | 1.99 |
Altair Engineering Inc's activity ratios provide insights into how efficiently the company is managing its assets and operations.
1. Inventory turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.
- Altair Engineering Inc had fluctuating inventory turnover ratios over the past quarters, with a significant increase in the most recent quarter compared to the previous one.
- The company showed very high inventory turnover in the fiscal year 2020, suggesting efficient management of inventory levels.
2. Receivables turnover:
- The receivables turnover ratio reflects how quickly a company collects its accounts receivables.
- Altair Engineering Inc's receivables turnover has also been inconsistent but generally stable, with some improvement in the most recent quarters.
- The company shows a reasonable ability to collect its outstanding receivables within the fiscal year 2021.
3. Payables turnover:
- The payables turnover ratio assesses how quickly a company pays its suppliers.
- Altair Engineering Inc's payables turnover ratio has been fluctuating, with a noticeable increase in the most recent quarters compared to the previous ones.
- The company appears to be managing its payables efficiently, with an increase in turnover in the fiscal year 2022.
4. Working capital turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate revenue.
- Altair Engineering Inc demonstrated varying working capital turnover ratios, with a substantial increase in the fiscal year 2021.
- The considerable increase in working capital turnover in the fiscal year 2021 indicates a higher efficiency in generating revenue relative to working capital investment.
Overall, Altair Engineering Inc's activity ratios suggest that the company has been working on improving its operational efficiency and asset management, as reflected in the fluctuating but generally positive trends in these ratios over the past quarters.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 2.94 | 3.03 | 1.92 | 3.06 | 5.19 | 5.58 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 5.98 | 8.21 | 4.58 | 4.15 | 5.37 | 9.44 | 5.78 | 4.72 | 5.87 | 6.42 | 4.83 | 6.56 | 7.05 | 9.31 | 5.90 | 5.18 | 6.00 | 10.95 | 12.66 | 12.87 |
Altair Engineering Inc's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH): The trend in DOH shows fluctuation over time, ranging from a low of 1.92 days to a high of 5.58 days. This indicates variations in the company's inventory management efficiency. In recent periods, the DOH has been decreasing, suggesting the company has been improving its inventory turnover and potentially managing its inventory levels more effectively.
2. Days of Sales Outstanding (DSO): Altair Engineering Inc's DSO also varies significantly across different periods, with the range from 69.85 days to 124.29 days. A lower DSO is preferable as it indicates the company is collecting receivables more quickly. The recent trend shows a decrease in DSO, indicating an improvement in the collection of accounts receivable and potentially a more efficient credit management process.
3. Number of Days of Payables: The number of days of payables has fluctuated between 4.15 days and 12.87 days. A higher number of days of payables suggests that the company takes longer to pay its suppliers. In recent periods, the days of payables have been relatively stable. Altair Engineering Inc has been maintaining a moderate level of payables days, indicating a consistent approach to managing payment terms with suppliers.
Overall, Altair Engineering Inc's activity ratios reflect some variability in its management of inventory, receivables, and payables. The recent trends suggest improvements in inventory turnover and accounts receivable collection, while the management of payables remains relatively stable. Further analysis and comparison with industry benchmarks may provide additional insights into the company's efficiency in managing its working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 15.77 | 15.28 | 15.74 | 14.96 | 14.93 | 15.02 | 13.77 | 13.72 | 13.19 | 12.82 | 13.18 | 12.53 | 12.14 | 12.61 | 13.28 | 13.05 | 13.01 | 12.66 | 13.25 | 13.02 |
| Total asset turnover | 0.44 | 0.45 | 0.48 | 0.47 | 0.47 | 0.47 | 0.48 | 0.48 | 0.47 | 0.45 | 0.50 | 0.61 | 0.58 | 0.55 | 0.59 | 0.61 | 0.63 | 0.62 | 0.62 | 0.61 |
The fixed asset turnover ratio for Altair Engineering Inc has shown a consistent upward trend over the reported periods, indicating that the company efficiently generates revenue in relation to its investment in fixed assets. This suggests that Altair is effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has been relatively stable over the periods but generally low. This implies that Altair may have a high level of assets compared to its sales revenue. A low total asset turnover ratio could indicate inefficiencies in asset utilization or potentially underperformance in generating sales from its total assets.
Overall, Altair Engineering Inc's fixed asset turnover ratio highlights the company's operational efficiency in utilizing its fixed assets to generate revenue. However, the total asset turnover ratio suggests potential room for improvement in optimizing the utilization of its total assets to drive higher sales revenue.