Altair Engineering Inc (ALTR)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.61 | 2.16 | 2.26 | 1.24 | 1.93 |
| Quick ratio | 1.15 | 1.44 | 1.36 | 0.87 | 1.20 |
| Cash ratio | 1.15 | 1.44 | 1.36 | 0.87 | 1.20 |
Altair Engineering Inc's liquidity ratios show fluctuating trends over the years.
1. Current Ratio:
- The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, decreased from 1.93 in 2020 to 1.24 in 2021, indicating a potential decrease in liquidity.
- However, the ratio improved in the following years, reaching 2.26 in 2022 and 2.16 in 2023, suggesting better short-term liquidity.
- The ratio then decreased to 1.61 in 2024, which may signify a slight reduction in the company's ability to cover immediate obligations.
2. Quick Ratio:
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar pattern as the current ratio.
- It decreased from 1.20 in 2020 to 0.87 in 2021, reflecting potential liquidity challenges.
- Subsequently, the quick ratio improved in the following years, reaching 1.36 in 2022 and 1.44 in 2023.
- However, it slightly declined to 1.15 in 2024, indicating a decrease in the company's ability to cover immediate liabilities without relying on inventory.
3. Cash Ratio:
- The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, showed the same trends as the quick ratio.
- It decreased from 1.20 in 2020 to 0.87 in 2021, implying potential liquidity challenges.
- The ratio then improved in the subsequent years, reaching 1.36 in 2022 and 1.44 in 2023.
- However, it decreased to 1.15 in 2024, indicating a potential slight decrease in the company's ability to cover short-term obligations with cash.
Overall, Altair Engineering Inc's liquidity ratios demonstrate mixed performance in managing short-term obligations over the years, with fluctuations in the company's ability to cover immediate liabilities with its current assets and cash reserves. Further analysis and monitoring are recommended to assess the company's liquidity position effectively.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Altair Engineering Inc has consistently maintained a cash conversion cycle of 0.00 days over the past five years, from December 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. With a cash conversion cycle of 0.00 days, Altair Engineering Inc is efficiently managing its working capital and effectively turning its resources into cash without delay. This indicates a streamlined and effective operational cycle, ensuring optimal liquidity and financial performance for the company.