Altair Engineering Inc (ALTR)

Liquidity ratios

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
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
Quick ratio 2.37 2.08 1.90 1.75 1.73 2.14 2.23 2.84 1.23 1.18 1.59 1.01 0.99 1.82 2.28 2.30 2.26 2.19 2.39 2.45
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

Altair Engineering Inc's liquidity ratios show varying levels of liquidity over the past few quarters.

1. Current Ratio:
- The current ratio has generally been above 1, indicating that Altair Engineering Inc has been able to meet its short-term obligations with current assets.
- The ratio has fluctuated between 1.29 and 2.96 over the last few quarters, with the highest value recorded on June 30, 2022.
- Altair's current ratio improved significantly from the end of 2021 to the first quarter of 2022, but then declined before showing some stability in recent quarters.

2. Quick Ratio:
- The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained above 1 in most quarters.
- Similar to the current ratio, the quick ratio fluctuated between 1.18 and 2.84 during the periods under review.
- Altair Engineering Inc maintained a relatively strong quick ratio, indicating its ability to cover short-term liabilities without relying on inventory in most cases.

3. Cash Ratio:
- The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, varied between 0.68 and 2.22 over the past few quarters.
- While the cash ratio was above 1 for most periods, it dipped below 1 in a few instances, suggesting a relatively lower level of cash reserves to cover short-term liabilities.
- Altair's cash ratio improved from the end of 2020 to mid-2022 before showing some fluctuations in recent periods.

In conclusion, Altair Engineering Inc has generally maintained adequate liquidity levels as indicated by its current, quick, and cash ratios. However, there have been fluctuations in these ratios over the reviewed quarters, highlighting the importance of monitoring liquidity closely to ensure financial stability and the ability to meet short-term obligations.

Additional liquidity measure

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 conversion cycle days 81.48 116.08 77.01 82.42 85.25 108.16 83.00 72.93 79.95 96.92 65.02 66.62 79.82 89.93 73.44 66.80 69.97 81.26 70.67 70.32

The cash conversion cycle of Altair Engineering Inc has shown fluctuations over the period analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

Altair Engineering's cash conversion cycle ranged from a low of 65.02 days to a high of 116.08 days during the period. A shorter cash conversion cycle indicates that the company is able to sell its inventory and collect cash from customers more quickly, which is generally positive. Conversely, a longer cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers.

Overall, Altair Engineering Inc has demonstrated some variability in its cash conversion cycle, which could be influenced by factors such as seasonal demand fluctuations, inventory management practices, and collection policies. Further analysis is recommended to identify the underlying reasons for these fluctuations and assess the company's overall efficiency in managing its working capital.