Altair Engineering Inc (ALTR)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	540,985	490,910	449,332	402,513	348,616
Revenue	US$ in thousands	665,788	612,701	572,221	532,179	469,921
Gross profit margin		81.25%	80.12%	78.52%	75.63%	74.19%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $540,985K ÷ $665,788K
= 81.25%

Altair Engineering Inc has demonstrated a consistent improvement in its gross profit margin over the past five years. Starting at 74.19% as of December 31, 2020, the company's gross profit margin has shown steady growth, reaching 81.25% by December 31, 2024. This positive trend indicates that Altair Engineering has been effectively managing its production costs and sales pricing strategies.

The increasing gross profit margin suggests that the company has been able to control its direct costs of goods sold while maintaining or increasing its sales revenue. This improvement could be attributed to various factors such as operational efficiencies, pricing strategies, cost control measures, or product mix optimization.

A rising gross profit margin is generally seen as a positive indicator of a company's financial health and operational efficiency. It reflects the company's ability to generate profits from its core business activities after accounting for the direct costs associated with production.

Overall, Altair Engineering Inc's consistently increasing gross profit margin highlights the company's ability to effectively manage its manufacturing and sales processes, leading to improved profitability over the years.