Altair Engineering Inc (ALTR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 711,331 | 569,736 | 613,197 | 378,586 | 354,707 |
| ROE | -1.25% | -7.62% | -1.43% | -2.77% | -2.13% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-8,926K ÷ $711,331K
= -1.25%
Altair Engineering Inc's return on equity (ROE) has displayed a downward trend over the past five years, ranging from -7.62% in 2022 to -1.25% in 2023. The negative ROE values indicate that the company's net income has not been generating significant returns relative to its shareholders' equity. This suggests inefficiency in the utilization of the company's equity to generate profits.
The consistent negative ROE figures could be a cause for concern for investors and stakeholders, signaling potential financial challenges or operational inefficiencies within Altair Engineering Inc. It is important for the company to assess and address the underlying factors contributing to the low ROE figures in order to enhance shareholder value and improve overall financial performance.
Peer comparison
Dec 31, 2023