Altair Engineering Inc (ALTR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 665,788 | 612,701 | 572,221 | 532,179 | 469,921 |
| Total assets | US$ in thousands | 1,445,650 | 1,363,490 | 1,204,740 | 1,163,280 | 829,902 |
| Total asset turnover | 0.46 | 0.45 | 0.47 | 0.46 | 0.57 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $665,788K ÷ $1,445,650K
= 0.46
Altair Engineering Inc's total asset turnover has shown a declining trend over the past five years. In 2020, the total asset turnover ratio was 0.57, indicating that the company generated $0.57 in revenue for every dollar of total assets. However, this ratio decreased to 0.46 in 2021 and has fluctuated slightly around 0.46 to 0.47 in the following years.
A decreasing trend in total asset turnover may suggest that Altair Engineering Inc is becoming less efficient in generating revenue from its assets. This could be due to various factors such as underutilization of assets, declining sales, or inefficient asset management.
It is essential for Altair Engineering Inc to closely monitor its total asset turnover and identify the underlying reasons for the decline. Improving operational efficiency, increasing asset utilization, and optimizing asset management practices could help the company enhance its revenue generation from its total assets in the future.
Peer comparison
Dec 31, 2024