Altair Engineering Inc (ALTR)

Total asset 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
Total assets	US$ in thousands	1,363,490	1,204,740	1,163,280	829,902	743,145
Total asset turnover		0.45	0.47	0.45	0.55	0.62

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $608,222K ÷ $1,363,490K
= 0.45

Altair Engineering Inc's total asset turnover has been fluctuating over the past five years. The ratio measures the efficiency with which the company generates sales revenue from its total assets. A decreasing trend in total asset turnover reflects a decrease in the company's ability to generate sales from its assets over time.

In this case, Altair Engineering Inc's total asset turnover has shown a downward trend from 0.62 in 2019 to 0.45 in 2023. This decline may indicate that the company is becoming less efficient in utilizing its assets to generate sales revenue. A lower total asset turnover could suggest inefficiencies in the management of assets or a decrease in sales relative to the size of the asset base.

Further analysis and comparison with industry peers and historical data may help in understanding the reasons behind the fluctuations in total asset turnover and identifying potential areas for improvement in asset utilization and operational efficiency.