Altair Engineering Inc (ALTR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 243 | -6,937 | 12,339 | 11,713 | 8,207 |
| Total assets | US$ in thousands | 1,363,490 | 1,204,740 | 1,163,280 | 829,902 | 743,145 |
| Operating ROA | 0.02% | -0.58% | 1.06% | 1.41% | 1.10% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $243K ÷ $1,363,490K
= 0.02%
Altair Engineering Inc's operating return on assets (operating ROA) has been fluctuating over the past five years. In 2023, the operating ROA stands at 0.02%, indicating minimal profitability generated from its operating assets. This is a slight improvement compared to the negative operating ROA of -0.58% in 2022, suggesting some progress in utilizing its operating assets more efficiently.
However, the operating ROA in 2023 is significantly lower than the levels seen in 2021, where it stood at 1.06%, and 2020, where it was 1.41%. This implies that Altair Engineering Inc might be facing challenges in generating earnings from its operating assets in the current financial year.
Comparing the current operating ROA to the 2019 figure of 1.10%, we observe a slight decrease in profitability from operating activities over the five-year period. This trend indicates the need for Altair Engineering Inc to focus on optimizing its operational efficiency to enhance profitability and return on assets.
Overall, Altair Engineering Inc's operating ROA has shown variability over the years, and the company should continue to monitor and improve its operational performance to drive higher returns from its assets in the future.
Peer comparison
Dec 31, 2023