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.