Altair Engineering Inc (ALTR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 46.51 | 45.81 | 74.56 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.24 | 1.35 | 1.37 | 1.43 | 1.63 | 2.04 | 2.19 | 2.33 | 1.95 | 2.07 | 1.51 | 4.34 | 4.66 | 2.27 | 19.29 | 25.23 | 2.52 | 2.19 | 2.21 | 2.24 |
The inventory turnover ratio for Altair Engineering Inc has shown a decreasing trend over the periods provided, dropping from 74.56 in March 2020 to 45.81 in June 2020, and consistently remaining around 46 over the subsequent quarters. This decline could indicate either inefficiencies in managing inventory levels or a slowing down of sales. However, without further context or industry benchmarks, it is challenging to draw definitive conclusions.
The receivables turnover and payables turnover ratios are not provided for any of the periods, rendering us unable to evaluate the efficiency of Altair Engineering's collection of receivables or management of payables.
The working capital turnover ratio, on the other hand, has shown fluctuations over the periods presented. It spiked significantly in March 2021 to 25.23 and remained elevated in subsequent quarters, indicating that there was a substantial increase in sales relative to the working capital available. This could suggest either an efficient utilization of working capital or an over-extension of the company's resources to generate revenue. However, the ratio dropped back to more normal levels in the following quarters, indicating a potential correction in the utilization of working capital.
Overall, a deeper analysis of Altair Engineering Inc's industry benchmarks and historical data would be necessary to provide more meaningful insights into the company's activity ratios and their implications for its operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.85 | 7.97 | 4.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Altair Engineering Inc's Days of Inventory on Hand (DOH) has shown variability over the period provided, ranging from 4.90 days to 7.97 days. A lower DOH indicates that the company is selling inventory more quickly, which may be positive for liquidity and profitability. However, without data for more recent periods, it is difficult to gauge the current efficiency of Altair's inventory management.
Regarding Days of Sales Outstanding (DSO) and Number of Days of Payables, the data is unavailable for analysis. DSO measures how long it takes to collect accounts receivable, and a lower DSO is generally considered better. On the other hand, the Number of Days of Payables is a measure of how long it takes the company to pay its suppliers and a higher number may indicate better liquidity but could also suggest strained supplier relationships.
In conclusion, while Altair Engineering Inc's DOH shows some fluctuations, the lack of data for DSO and Payables makes it challenging to provide a comprehensive analysis of the company's activity ratios. More recent and complete data would be needed to assess the effectiveness of Altair's working capital management and operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 8.46 | 15.12 | 15.25 | 7.72 | 14.09 | 13.48 | 7.72 | 13.56 | 6.99 | 12.48 | 12.93 | 13.38 | 6.78 | 7.61 |
| Total asset turnover | 0.46 | 0.47 | 0.47 | 0.45 | 0.45 | 0.48 | 0.47 | 0.47 | 0.47 | 0.49 | 0.49 | 0.48 | 0.46 | 0.52 | 0.62 | 0.60 | 0.57 | 0.59 | 0.62 | 0.63 |
Altair Engineering Inc's fixed asset turnover ratio has exhibited fluctuation over the analyzed periods, ranging from a low of 6.78 to a high of 15.25. This ratio indicates how efficiently the company is generating revenue from its fixed assets. The increasing trend since March 31, 2022, suggests improved efficiency in utilizing fixed assets to generate sales.
On the other hand, Altair Engineering Inc's total asset turnover ratio has also shown variability but has generally decreased over time. This ratio reflects how well the company is generating revenue compared to its total assets. The declining trend signals a decrease in sales generated for each dollar of total assets. This could indicate challenges in effectively utilizing the company's total asset base to generate revenue.
Overall, while Altair Engineering Inc has shown improvement in the efficiency of generating revenue from fixed assets, there may be opportunities to enhance its overall asset utilization to improve the total asset turnover ratio.