Altair Engineering Inc (ALTR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 12,619 | -28,213 | -288 | 2,032 | 3,388 |
| Revenue | US$ in thousands | 608,222 | 563,439 | 519,011 | 458,323 | 458,915 |
| Pretax margin | 2.07% | -5.01% | -0.06% | 0.44% | 0.74% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $12,619K ÷ $608,222K
= 2.07%
Altair Engineering Inc's pretax margin has exhibited fluctuations over the past five years. In 2023, the company achieved a pretax margin of 2.07%, indicating that for every dollar of revenue generated, Altair Engineering retained 2.07 cents before taxes. This marks a notable improvement compared to the negative pretax margin of -5.01% in 2022. However, the pretax margin in 2023 remains relatively low compared to historical levels, such as the positive margins of 0.44% in 2020 and 0.74% in 2019. The negative pretax margin in 2022 and the marginal improvement in 2021 suggest the company has faced challenges in controlling expenses and optimizing profitability. Further analysis of the company's cost structure and revenue generation strategies may be warranted to sustain and enhance profitability in the future.
Peer comparison
Dec 31, 2023