Altair Engineering Inc (ALTR)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	15,992	243	-17,731	-31,463	-22,462	-6,937	-6,906	16,164	14,841	12,339	15,015	13,518	17,817	11,713	8,539	1,455	2,545	8,207	501	12,888
Total assets	US$ in thousands	1,379,910	1,363,490	1,251,990	1,255,810	1,226,170	1,204,740	1,124,930	1,128,510	1,133,690	1,163,280	1,014,480	820,216	817,913	829,902	779,703	736,846	734,654	743,145	716,700	729,720
Operating ROA		1.16%	0.02%	-1.42%	-2.51%	-1.83%	-0.58%	-0.61%	1.43%	1.31%	1.06%	1.48%	1.65%	2.18%	1.41%	1.10%	0.20%	0.35%	1.10%	0.07%	1.77%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $15,992K ÷ $1,379,910K
= 1.16%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the operating efficiency and profitability of a company in generating profits from its assets. Altair Engineering Inc's Operating ROA has fluctuated over the past several quarters, with a noticeable trend towards improvement in recent periods.

The Operating ROA for Altair Engineering Inc was -1.83% in the first quarter of 2021 and improved to 1.16% by the first quarter of 2024, reflecting a positive turnaround in the company's ability to generate operating profits from its assets. This improvement suggests that Altair Engineering Inc has become more efficient in utilizing its assets to generate earnings from its core operations.

It is important to note that in some periods, such as Jun 30, 2023, and Dec 31, 2023, the company recorded negative Operating ROA figures (-2.51% and 0.02% respectively), indicating operational inefficiencies and lower profitability generated from assets during those periods.

Overall, the positive trend in Altair Engineering Inc's Operating ROA indicates a potential increase in operational efficiency and profitability, which may be a result of better asset management and cost control measures implemented by the company in recent quarters. Monitoring this ratio over time can provide valuable insights into the company's operational performance and financial health.