Altair Engineering Inc (ALTR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	608,222	563,439	519,011	458,323	458,915
Receivables	US$ in thousands	207,111	181,538	146,949	124,614	112,248
Receivables turnover		2.94	3.10	3.53	3.68	4.09

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $608,222K ÷ $207,111K
= 2.94

The receivables turnover ratio of Altair Engineering Inc has been steadily declining over the past five years, indicating that the company is taking longer to collect payments from its customers. In 2019, the ratio was at its highest point at 4.09, which suggests that the company was more efficient in collecting receivables at that time. However, the ratio has been decreasing since then, reaching 2.94 in 2023.

A decreasing trend in receivables turnover may imply potential issues with the company's credit policies, collection procedures, or the quality of its customers. A lower receivables turnover ratio could also indicate a higher level of credit risk or an increase in bad debts.

It is important for Altair Engineering Inc to monitor and potentially improve its receivables turnover ratio to ensure efficient management of its accounts receivable and maintain healthy cash flow. This can be achieved through implementing stricter credit policies, improving collection processes, or reassessing the creditworthiness of its customers.