Altair Engineering Inc (ALTR)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 561,898 | 513,371 | 507,008 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 487,769 | 210,108 | 216,825 | 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 |
| Cash ratio | 1.15 | 2.44 | 2.34 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($561,898K
+ $—K)
÷ $487,769K
= 1.15
Altair Engineering Inc's cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
Over the analyzed period, Altair Engineering Inc's cash ratio has fluctuated. It started at a healthy level of around 1.6 in March 2020, increasing to 1.72 by June 2020. However, there was a decline to 0.68 by March 2021, signaling a potential liquidity issue. The company managed to improve its cash position, with the ratio rebounding to 2.22 by June 2022, indicating a significant increase in liquidity.
Although there were fluctuations in the cash ratio in subsequent periods, the company generally maintained its ability to cover short-term liabilities efficiently. Notably, Altair Engineering Inc's cash ratio peaked at 2.44 by September 30, 2024, displaying a robust liquidity position.
Overall, Altair Engineering Inc's cash ratio trended positively over the analyzed period, with occasional fluctuations. This suggests that the company effectively manages its cash resources to meet short-term obligations, with periods of both strength and improvement in liquidity.
Peer comparison
Dec 31, 2024