Altair Engineering Inc (ALTR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 561,898 | 467,459 | 316,146 | 413,743 | 241,221 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 487,769 | 324,110 | 232,738 | 473,978 | 200,754 |
| Quick ratio | 1.15 | 1.44 | 1.36 | 0.87 | 1.20 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($561,898K
+ $—K
+ $—K)
÷ $487,769K
= 1.15
Altair Engineering Inc's quick ratio has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 1.20, indicating that the company had $1.20 of liquid assets available to cover each dollar of current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.87, suggesting a potential liquidity concern as the company had less than $1 of quick assets to cover each dollar of current liabilities.
During the following years, Altair Engineering Inc improved its liquidity position significantly. By December 31, 2022, the quick ratio increased to 1.36, signaling that the company had strengthened its ability to meet short-term obligations using its liquid assets. The trend continued to improve, reaching 1.44 as of December 31, 2023, indicating a further enhancement in liquidity.
However, by December 31, 2024, the quick ratio slightly dropped to 1.15, although it remained above 1.0, implying that the company still had an adequate level of quick assets to cover its current liabilities.
Overall, Altair Engineering Inc's quick ratio has exhibited variability but generally shows a positive trend towards improved liquidity management over the five-year period, which is a favorable signal for the company's financial health.
Peer comparison
Dec 31, 2024