Altair Engineering Inc (ALTR)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 34,654 47,175 31,355 23,434 11,153 -7,704 -25,433 -42,534 -30,622 -30,920 -5,867 14,009 14,807 17,548 16,957 21,644 12,240 8,001 723 2,638
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 857,189 836,900 791,306 762,928 711,331 634,118 620,215 606,905 569,736 535,529 558,172 619,209 613,981 603,046 400,129 399,813 379,370 360,239 355,734 358,497
Return on total capital 4.04% 5.64% 3.96% 3.07% 1.57% -1.21% -4.10% -7.01% -5.37% -5.77% -1.05% 2.26% 2.41% 2.91% 4.24% 5.41% 3.23% 2.22% 0.20% 0.74%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $34,654K ÷ ($—K + $857,189K)
= 4.04%

Altair Engineering Inc's return on total capital has experienced fluctuations over the analyzed period. The trend shows a gradual increase from 0.74% in March 2020 to a peak of 5.41% in March 2021. However, the return on total capital started to decline thereafter, reaching negative territory in the most recent quarters. Despite the fluctuations, Altair Engineering Inc has generally maintained positive returns on total capital over the period with the latest reported figure at 4.04% in December 2024. It is important for the company to closely monitor and manage its capital allocation and efficiency to enhance its return on total capital in the future.