Altair Engineering Inc (ALTR)

Current 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
Total current assets	US$ in thousands	730,399	700,623	592,006	586,781	548,602	526,826	465,731	554,314	555,674	588,221	579,505	382,647	378,756	386,935	359,803	351,954	357,471	352,457	360,948	364,363
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
Current ratio		2.46	2.16	1.99	1.84	1.83	2.26	2.35	2.96	1.29	1.24	1.67	1.07	1.05	1.93	2.41	2.41	2.37	2.31	2.52	2.58

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $730,399K ÷ $296,754K
= 2.46

Altair Engineering Inc's current ratio has shown fluctuations over the past few quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

The current ratio for Altair Engineering Inc was consistently above 2 from Mar 31, 2020, through Dec 31, 2022, indicating a strong ability to meet short-term obligations. However, there was a significant drop in the ratio in the first quarter of 2023 to 1.83, possibly indicating a strain on liquidity and a potential difficulty in meeting short-term obligations.

From Jun 30, 2023, through Mar 31, 2024, the current ratio improved, indicating a better ability to cover short-term obligations compared to the earlier quarter. It reached its highest point of 2.46 at Mar 31, 2024, suggesting improved liquidity and a stronger ability to meet short-term obligations.

Overall, it is important for Altair Engineering Inc to maintain a healthy current ratio above 1 to ensure it can meet its short-term liabilities efficiently and sustainably. The recent improvement in the current ratio is a positive sign, but monitoring future trends will be essential for assessing the company's liquidity position.