Altair Engineering Inc (ALTR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	557,605	467,459	431,188	418,338	378,377	316,146	311,853	416,137	405,578	413,743	455,858	260,098	243,364	241,221	245,364	250,540	247,145	223,117	246,937	251,828
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	296,754	324,110	296,915	319,248	300,394	232,738	198,476	187,064	430,741	473,978	347,896	356,210	359,390	200,754	149,488	146,074	150,640	152,866	143,256	141,067
Cash ratio		1.88	1.44	1.45	1.31	1.26	1.36	1.57	2.22	0.94	0.87	1.31	0.73	0.68	1.20	1.64	1.72	1.64	1.46	1.72	1.79

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($557,605K + $—K) ÷ $296,754K
= 1.88

The cash ratio of Altair Engineering Inc has fluctuated over the past several quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

Altair Engineering Inc's cash ratio has generally been above 1, which indicates that the company has had sufficient cash on hand to cover its short-term obligations. A cash ratio above 1 is considered healthy as it suggests the company can meet its current liabilities without having to rely heavily on its other current assets or external sources of financing.

In analyzing the trend of Altair Engineering Inc's cash ratio, we observe fluctuations in the ratio over time. From December 2019 to June 2020, the cash ratio showed a steady increase, peaking at 1.79 in September 2020. However, the ratio dropped in the following quarters before increasing again in June 2021. In March 2022, there was a significant decrease in the cash ratio to 0.94, indicating a potential liquidity concern during that period. The ratio then improved but has remained somewhat volatile in subsequent quarters.

Overall, Altair Engineering Inc's cash ratio has shown variation but generally remained above 1, indicating a healthy liquidity position. However, management should continue to monitor the ratio closely to ensure the company maintains adequate cash reserves to meet its short-term obligations.