Altair Engineering Inc (ALTR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -8,926 | -43,429 | -8,794 | -10,500 | -7,542 |
| Total assets | US$ in thousands | 1,363,490 | 1,204,740 | 1,163,280 | 829,902 | 743,145 |
| ROA | -0.65% | -3.60% | -0.76% | -1.27% | -1.01% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-8,926K ÷ $1,363,490K
= -0.65%
Altair Engineering Inc's return on assets (ROA) has been fluctuating over the past five years. In 2023, the ROA improved slightly to -0.65% from a significant decrease of -3.60% in 2022. However, despite this improvement, the ROA remains negative, indicating that the company's assets are not generating a positive return. This trend of negative ROA is also evident in the results from 2021, 2020, and 2019, with values of -0.76%, -1.27%, and -1.01%, respectively.
The consistent negative ROA over the years suggests that Altair Engineering Inc is facing challenges in efficiently utilizing its assets to generate profits. Investors and stakeholders may view this as a sign of inefficiency in the company's operations or potential underperformance relative to its industry peers.
It is crucial for Altair Engineering Inc to focus on improving its asset management strategies and operational efficiency to enhance its ROA and profitability in the future. Additionally, management should closely monitor and address the factors contributing to the negative ROA to drive sustainable growth and value creation for the company.
Peer comparison
Dec 31, 2023