Altair Engineering Inc (ALTR)

Debt-to-capital 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
Long-term debt US$ in thousands 226,223 225,929 225,635 225,320 225,039 305,604 305,158 304,676 — — — — — 188,300 — — — — — —
Total stockholders’ equity US$ in thousands 762,928 711,331 634,118 620,215 606,905 569,736 535,529 558,172 618,425 613,197 602,262 399,345 399,029 378,586 359,455 354,950 356,145 354,707 343,341 359,841
Debt-to-capital ratio 0.23 0.24 0.26 0.27 0.27 0.35 0.36 0.35 0.00 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 0.00 0.00 0.00

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $226,223K ÷ ($226,223K + $762,928K)
= 0.23

The debt-to-capital ratio for Altair Engineering Inc has fluctuated over the past several quarters. As of March 31, 2024, the ratio stood at 0.23, indicating that the company's total debt represented 23% of its total capital. This ratio decreased compared to the previous quarter but has been relatively stable since June 2023 when it was at its peak at 0.36.

It is noteworthy that there were quarters, such as in the first half of 2022 and throughout 2021, where the company reported a debt-to-capital ratio of 0.00, suggesting that the company had either no debt or minimal debt during those periods. This could be due to various factors, such as successful debt repayment or shifts in the capital structure.

Overall, Altair Engineering Inc's recent debt-to-capital ratios indicate that the company has been managing its debt levels effectively, maintaining a balanced capital structure. The recent decrease in the ratio may suggest improved financial health or a shifting focus on reducing leverage. Further analysis, considering industry trends and financial goals, would provide a more comprehensive understanding of Altair Engineering Inc's debt management strategy.