Altair Engineering Inc (ALTR)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	784,978	700,623	526,826	588,221	386,935
Total current liabilities	US$ in thousands	487,769	324,110	232,738	473,978	200,754
Current ratio		1.61	2.16	2.26	1.24	1.93

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $784,978K ÷ $487,769K
= 1.61

Altair Engineering Inc's current ratio has fluctuated over the years. As of December 31, 2020, the current ratio was 1.93, indicating that the company had $1.93 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio decreased to 1.24, suggesting a potential liquidity strain as the ratio was below 1.5, a commonly recommended benchmark for a healthy current ratio.

Subsequently, Altair Engineering Inc was able to improve its liquidity position, as the current ratio increased to 2.26 by December 31, 2022, and further to 2.16 by December 31, 2023. These ratios indicate the company had more than enough current assets to cover its current liabilities, reflecting a stronger liquidity position.

However, there was a slight decline in the current ratio to 1.61 by December 31, 2024. While this ratio is still above 1, indicating the company can meet its short-term obligations, it suggests a slight decrease in liquidity compared to the previous years.

Overall, Altair Engineering Inc's current ratio has shown fluctuations, with periods of both improvement and slight deterioration in liquidity levels. It is essential for investors and analysts to monitor these changes to assess the company's ability to meet its short-term financial obligations.