Altair Engineering Inc (ALTR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 18,735 | -23,836 | 11,777 | 13,630 | 9,759 |
| Long-term debt | US$ in thousands | 225,929 | 305,604 | — | 188,300 | — |
| Total stockholders’ equity | US$ in thousands | 711,331 | 569,736 | 613,197 | 378,586 | 354,707 |
| Return on total capital | 2.00% | -2.72% | 1.92% | 2.40% | 2.75% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $18,735K ÷ ($225,929K + $711,331K)
= 2.00%
Altair Engineering Inc's return on total capital has shown variability over the past five years. In 2023, the return on total capital was 2.00%, marking a positive improvement from the previous year's negative figure of -2.72% in 2022. Although the return on total capital in 2023 was positive, it is still lower compared to the figures in 2020 and 2019, which were 2.40% and 2.75%, respectively.
Overall, Altair Engineering Inc's return on total capital has exhibited fluctuation in recent years, with the company experiencing both positive and negative returns. It is important for stakeholders to closely monitor this metric to assess the company's efficiency in generating returns relative to its total capital.
Peer comparison
Dec 31, 2023