Altair Engineering Inc (ALTR)

Working capital 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 current assets	US$ in thousands	700,623	526,826	588,221	386,935	352,457
Total current liabilities	US$ in thousands	324,110	232,738	473,978	200,754	152,866
Working capital turnover		1.62	1.92	4.54	2.46	2.30

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $608,222K ÷ ($700,623K – $324,110K)
= 1.62

Altair Engineering Inc's working capital turnover has fluctuated over the past five years. In 2023, the working capital turnover ratio decreased to 1.62 from 1.92 in 2022, indicating a decrease in the efficiency of the company in generating revenue from its working capital. This may suggest that Altair Engineering Inc may be facing challenges in efficiently managing its working capital to support its operations and sales during the year.

Comparing to previous years, the working capital turnover ratio of 2023 is notably lower than the high of 4.54 in 2021, which indicates a significant decline in the efficiency of working capital utilization from the peak level. Nonetheless, the ratio of 1.62 in 2023 is still higher than the ratios in 2020 and 2019, indicating a better performance in working capital turnover for those years.

Overall, Altair Engineering Inc's working capital turnover ratio has shown fluctuations over the past five years, and a deeper analysis is needed to understand the specific factors contributing to these changes and to assess the company's operational efficiency and financial health.