Altair Engineering Inc (ALTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.71% | 79.75% | 77.55% | 76.06% | 71.11% |
| Operating profit margin | 0.04% | -1.23% | 2.38% | 2.56% | 1.79% |
| Pretax margin | 2.07% | -5.01% | -0.06% | 0.44% | 0.74% |
| Net profit margin | -1.47% | -7.71% | -1.69% | -2.29% | -1.64% |
Altair Engineering Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has been steadily increasing, reaching 80.71% in 2023 from 71.11% in 2019, indicating the company's ability to efficiently manage production costs and generate profits from its core operations.
However, the operating profit margin has been inconsistent, with a slight positive shift in 2023 at 0.04% compared to negative figures in the previous years. This suggests that Altair Engineering Inc may have achieved better control over its operating expenses in the most recent year.
The pretax margin also showed improvement in 2023, reaching 2.07%, after negative margins in 2022 and 2021. This indicates that the company has managed to generate higher profits before accounting for taxes, possibly through strategic cost management or revenue growth.
Despite these improvements, the net profit margin remained negative in 2023 at -1.47%, following negative figures in the previous four years. This suggests that Altair Engineering Inc may still be facing challenges in terms of bottom-line profitability, possibly due to non-operational expenses or one-time charges impacting its overall net income.
In summary, Altair Engineering Inc has shown progress in managing its gross profit and operating profit margins, but challenges persist in achieving positive net profit margins, indicating the need for continued efforts to improve overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.02% | -0.58% | 1.06% | 1.41% | 1.10% |
| Return on assets (ROA) | -0.65% | -3.60% | -0.76% | -1.27% | -1.01% |
| Return on total capital | 2.00% | -2.72% | 1.92% | 2.40% | 2.75% |
| Return on equity (ROE) | -1.25% | -7.62% | -1.43% | -2.77% | -2.13% |
Altair Engineering Inc.'s profitability ratios show mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's operating efficiency in generating profits from its assets. Altair's Operating ROA has fluctuated significantly, ranging from a low of -0.58% in 2022 to a high of 1.41% in 2020. The positive trend in more recent years is positive, albeit low at 0.02% in 2023.
2. Return on Assets (ROA): ROA measures the company's overall profitability in relation to its total assets. Altair has consistently shown negative ROA values over the past five years, indicating that the company is not effectively generating profits from its assets. The improvement from -3.60% in 2022 to -0.65% in 2023 is a positive sign but still below the ideal benchmark.
3. Return on Total Capital: This ratio evaluates the company's ability to generate returns for all providers of capital. Altair's Return on Total Capital has been inconsistent, with the most recent value of 2.00% showing a positive trend compared to the negative values in previous years.
4. Return on Equity (ROE): ROE measures the company's ability to generate a return on the shareholders' equity. Altair has continued to report negative ROE figures over the years, indicating a struggle to create value for its shareholders. The improvement from -7.62% in 2022 to -1.25% in 2023 is a step in the right direction but still points to profitability challenges.
In conclusion, Altair Engineering Inc. has shown some improvements in its profitability ratios in the most recent years, particularly in Operating Return on Assets and Return on Total Capital. However, the company continues to face challenges in generating profits from its assets and providing returns to its shareholders, as evidenced by negative ROA and ROE values.