Altair Engineering Inc (ALTR)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 665,788 | 644,660 | 627,213 | 619,579 | 612,701 | 601,631 | 586,979 | 578,474 | 572,221 | 552,585 | 554,541 | 541,797 | 532,179 | 524,823 | 509,972 | 488,621 | 469,921 | 460,357 | 454,307 | 462,519 |
Total current assets | US$ in thousands | 784,978 | 686,999 | 675,332 | 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 |
Total current liabilities | US$ in thousands | 487,769 | 210,108 | 216,825 | 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 |
Working capital turnover | 2.24 | 1.35 | 1.37 | 1.43 | 1.63 | 2.04 | 2.19 | 2.33 | 1.95 | 2.07 | 1.51 | 4.34 | 4.66 | 2.27 | 19.29 | 25.23 | 2.52 | 2.19 | 2.21 | 2.24 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $665,788K ÷ ($784,978K – $487,769K)
= 2.24
Altair Engineering Inc's working capital turnover has shown fluctuations over the periods provided. It was relatively stable around the range of 2.1 to 2.5 in the first half of 2020, indicating that the company was efficiently utilizing its working capital to generate sales.
However, there was a significant spike in the ratio in the first quarter of 2021 to 25.23, which suggests the company had either greatly reduced its working capital or experienced a substantial increase in sales during that period. This sudden increase might be due to various factors such as a large project completion or a significant increase in revenue.
Subsequently, in the following quarters of 2021, the ratio remained elevated, above the historical range, indicating continued efficient use of working capital. However, the ratio declined sharply in the second quarter of 2022 to 1.51, signifying a potential slowdown in working capital efficiency or a decrease in sales relative to the working capital levels.
From the second quarter of 2022 to the end of 2024, the working capital turnover ratio continued to decline, indicating a trend of the company being less effective in generating sales from its working capital. This may signal inefficiencies in working capital management or challenges in converting working capital into revenue during those periods.
Overall, Altair Engineering Inc's working capital turnover ratio has exhibited variations, with periods of high efficiency in utilizing working capital to generate sales, as well as periods of relatively lower efficiency. It is essential for the company to closely monitor and optimize its working capital management practices to maintain a healthy balance between liquidity and operational efficiency.
Peer comparison
Dec 31, 2024