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.
Peer comparison
Mar 31, 2024