Altair Engineering Inc (ALTR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 225,929 | 305,604 | — | 188,300 | — |
| Total assets | US$ in thousands | 1,363,490 | 1,204,740 | 1,163,280 | 829,902 | 743,145 |
| Debt-to-assets ratio | 0.17 | 0.25 | 0.00 | 0.23 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $225,929K ÷ $1,363,490K
= 0.17
Altair Engineering Inc's debt-to-assets ratio has shown fluctuations over the past five years. In 2023, the ratio stands at 0.17, indicating that 17% of the company's assets are financed by debt. This represents an improvement from 2022 when the ratio was 0.25. The significant decrease in the ratio signifies a reduction in the proportion of assets financed by debt, which may point towards a more conservative financial strategy or improved financial health.
The company had no debt to assets in 2021 and 2019, suggesting that the company was operating with a debt-free capital structure during those years. In 2020, the debt-to-assets ratio was 0.23, indicating a moderate level of debt compared to assets.
Overall, Altair Engineering Inc's debt-to-assets ratio has shown variability, but the recent decrease in the ratio to 0.17 indicates a positive trend of decreased reliance on debt financing, which may be seen as a positive sign by investors and creditors.
Peer comparison
Dec 31, 2023