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.
Peer comparison
Dec 31, 2023