Altair Engineering Inc (ALTR)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	34,828	18,735	1,150	-16,579	-33,680	-23,836	-31,883	-6,830	13,046	11,777	13,413	12,822	17,509	13,630	11,240	3,962	5,877	9,759	1,738	14,507
Long-term debt	US$ in thousands	226,223	225,929	225,635	225,320	225,039	305,604	305,158	304,676	—	—	—	—	—	188,300	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	762,928	711,331	634,118	620,215	606,905	569,736	535,529	558,172	618,425	613,197	602,262	399,345	399,029	378,586	359,455	354,950	356,145	354,707	343,341	359,841
Return on total capital		3.52%	2.00%	0.13%	-1.96%	-4.05%	-2.72%	-3.79%	-0.79%	2.11%	1.92%	2.23%	3.21%	4.39%	2.40%	3.13%	1.12%	1.65%	2.75%	0.51%	4.03%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $34,828K ÷ ($226,223K + $762,928K)
= 3.52%

Altair Engineering Inc's return on total capital has fluctuated over the past several quarters. The trend indicates that the company's performance in generating returns relative to its total capital has been somewhat volatile.

In the most recent quarter, Altair Engineering Inc recorded a return on total capital of 3.52%, representing an improvement from the previous quarter's 2.00%. The positive increase indicates that the company was able to generate a higher return on the total capital employed during the period.

Looking back over the past several quarters, Altair Engineering Inc's return on total capital has shown mixed results, with some quarters reporting positive returns while others have recorded negative returns. It is important for the company to closely monitor and manage its capital allocation and efficiency in order to consistently improve its return on total capital.

Overall, Altair Engineering Inc's return on total capital trend suggests that the company's ability to generate returns from its total capital has been variable and may benefit from further strategic and operational improvements to enhance financial performance.