Altair Engineering Inc (ALTR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.85 | 7.97 | 4.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7.85 | 7.97 | 4.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Altair Engineering Inc's cash conversion cycle has shown varying trends over time. In March 2020, the company had a relatively low cash conversion cycle of 4.90 days, indicating that it took just under 5 days to convert its investments in inventory and other resources back into cash.
However, from June 2020 to September 2020, the cash conversion cycle increased significantly to around 8 days, suggesting a longer period to convert resources into cash. This may indicate a potential increase in the company's inventory levels or slower collection of receivables during this period.
Interestingly, by December 2020, the cash conversion cycle dropped to 0.00 days and remained at this level throughout the following years up to December 2024. A cash conversion cycle of 0.00 days suggests that Altair Engineering Inc is able to quickly convert its investments into cash, potentially indicating efficient management of inventory, receivables, and payables.
Overall, while there were fluctuations in the cash conversion cycle over the period analyzed, the sustained period of 0.00 days from December 2020 to December 2024 reflects a level of operational efficiency in managing working capital and maximizing cash flows within Altair Engineering Inc.
Peer comparison
Dec 31, 2024