Altair Engineering Inc (ALTR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 467,459 | 316,146 | 413,743 | 241,221 | 223,117 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 324,110 | 232,738 | 473,978 | 200,754 | 152,866 |
| Cash ratio | 1.44 | 1.36 | 0.87 | 1.20 | 1.46 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($467,459K
+ $—K)
÷ $324,110K
= 1.44
The cash ratio for Altair Engineering Inc has varied over the past five years. In 2023, the cash ratio stands at 1.44, indicating that the company has $1.44 in cash and cash equivalents for every $1 of current liabilities. This is an improvement compared to the previous year's ratio of 1.36.
In 2021, the cash ratio was relatively lower at 0.87, suggesting that the company had $0.87 in cash and cash equivalents for every $1 of current liabilities. However, the ratio increased to 1.20 in 2020 and further rose to 1.46 in 2019.
Overall, the increasing trend in the cash ratio from 2021 to 2023 reflects an improved liquidity position for Altair Engineering Inc, indicating a higher ability to cover its short-term obligations and potentially fund operations without relying heavily on external financing. This indicates that the company may have a strong cash position, which could help weather economic uncertainties or capitalize on growth opportunities.
Peer comparison
Dec 31, 2023