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.