Altair Engineering Inc (ALTR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 14,175 | -8,926 | -43,429 | -8,794 | -10,500 |
| Total stockholders’ equity | US$ in thousands | 857,189 | 711,331 | 569,736 | 613,981 | 379,370 |
| ROE | 1.65% | -1.25% | -7.62% | -1.43% | -2.77% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $14,175K ÷ $857,189K
= 1.65%
Altair Engineering Inc's return on equity (ROE) has shown a mixed performance over the past five years. In December 2020, the company reported a negative ROE of -2.77%, indicating that it generated a loss on shareholders' equity during that period. This negative trend continued into December 2021 with an ROE of -1.43%.
However, there was a significant decline in ROE as of December 2022, dropping to -7.62%, indicating a worsened performance in utilizing shareholders' equity to generate profits. The company's negative ROE improved slightly in December 2023 to -1.25%.
In a positive turn, Altair Engineering Inc managed to reverse the trend in December 2024, reporting a positive ROE of 1.65%. This suggests that the company was able to generate a profit on shareholders' equity, indicating a potentially improving financial performance.
Overall, Altair Engineering Inc's return on equity has been volatile and fluctuating over the past five years, with a mix of negative and positive returns. It will be important for stakeholders to monitor the company's future ROE performance to assess its ability to generate profits from shareholders' equity effectively.
Peer comparison
Dec 31, 2024