Altair Engineering Inc (ALTR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	700,623	526,826	588,221	386,935	352,457
Total current liabilities	US$ in thousands	324,110	232,738	473,978	200,754	152,866
Current ratio		2.16	2.26	1.24	1.93	2.31

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $700,623K ÷ $324,110K
= 2.16

Altair Engineering Inc's current ratio has fluctuated over the past five years. As of December 31, 2023, the current ratio stands at 2.16, indicating that the company has $2.16 in current assets for every $1 of current liabilities. This is a slight decrease from the prior year's ratio of 2.26.

The current ratio for 2023 suggests that Altair Engineering Inc is able to cover its short-term obligations comfortably with its current assets. However, it is important to note that the current ratio has decreased from the peak of 2.31 in 2019 and experienced a significant drop in 2021 to 1.24 before recovering.

While a current ratio above 1 indicates that the company has more current assets than current liabilities, the downward trend in recent years may warrant further analysis to understand the reasons behind these fluctuations. Factors such as changes in inventory levels, liquidity management, or shifts in the company's operating cycle could have influenced the current ratio. Monitoring the current ratio over time will be important to assess Altair Engineering Inc's short-term liquidity position and financial health.