Altair Engineering Inc (ALTR)

Working capital turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	612,557	608,222	600,592	585,021	571,392	563,439	536,037	540,111	530,033	519,011	510,152	496,321	475,198	458,323	456,770	449,723	461,129	459,602	446,656	443,361
Total current assets	US$ in thousands	730,399	700,623	592,006	586,781	548,602	526,826	465,731	554,314	555,674	588,221	579,505	382,647	378,756	386,935	359,803	351,954	357,471	352,457	360,948	364,363
Total current liabilities	US$ in thousands	296,754	324,110	296,915	319,248	300,394	232,738	198,476	187,064	430,741	473,978	347,896	356,210	359,390	200,754	149,488	146,074	150,640	152,866	143,256	141,067
Working capital turnover		1.41	1.62	2.04	2.19	2.30	1.92	2.01	1.47	4.24	4.54	2.20	18.77	24.54	2.46	2.17	2.18	2.23	2.30	2.05	1.99

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $612,557K ÷ ($730,399K – $296,754K)
= 1.41

Altair Engineering Inc's working capital turnover has shown some fluctuations over the past few quarters. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

The ratio has generally been above 1, indicating that Altair Engineering Inc is efficiently using its working capital to generate revenue. A higher ratio is favorable as it suggests that the company is efficiently managing its current assets and liabilities to support its operations.

The ratio peaked at 24.54 in December 2020, indicating an exceptionally high level of efficiency in utilizing its working capital at that time. This could be attributed to effective management of inventory, accounts receivable, and accounts payable.

However, the ratio has fluctuated since then, showing a downward trend in recent quarters. This could indicate changes in the company's operating cycle, shifts in the industry, or adjustments in working capital management strategies.

Overall, Altair Engineering Inc's working capital turnover ratio has demonstrated efficiency in utilizing its working capital to generate revenue, but the fluctuations warrant further analysis to understand the underlying reasons behind the changes observed in recent periods.