Altair Engineering Inc (ALTR)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 32,630 | 12,619 | -28,213 | -288 | 2,032 |
| Revenue | US$ in thousands | 665,788 | 612,701 | 572,221 | 532,179 | 469,921 |
| Pretax margin | 4.90% | 2.06% | -4.93% | -0.05% | 0.43% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $32,630K ÷ $665,788K
= 4.90%
Altair Engineering Inc's pretax margin has shown fluctuations over the past five years. In 2020, the company had a pretax margin of 0.43%, indicating that for every dollar of revenue generated, the company was able to retain 0.43 cents before taxes. However, this margin decreased to -0.05% in 2021, implying that the company incurred losses before taxes. The situation worsened in 2022 with a pretax margin of -4.93%, reflecting a significant decline in profitability.
The company's financial performance started to improve in 2023, as indicated by a pretax margin of 2.06%, signifying a return to profitability. This positive trend continued into 2024, with Altair Engineering Inc achieving a pretax margin of 4.90%, demonstrating increased profitability and efficiency in managing costs.
Overall, while the company faced challenges in recent years with fluctuating pretax margins, the turnaround in profitability seen in 2023 and 2024 suggests that Altair Engineering Inc has been able to navigate these difficulties and improve its financial performance.
Peer comparison
Dec 31, 2024