Altair Engineering Inc (ALTR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,445,650 | 1,363,490 | 1,204,740 | 1,163,280 | 829,902 |
| Total stockholders’ equity | US$ in thousands | 857,189 | 711,331 | 569,736 | 613,981 | 379,370 |
| Financial leverage ratio | 1.69 | 1.92 | 2.11 | 1.89 | 2.19 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,445,650K ÷ $857,189K
= 1.69
Altair Engineering Inc's financial leverage ratio has fluctuated over the past five years. The ratio was 2.19 as of December 31, 2020, indicating that the company had $2.19 of debt for every $1 of equity. By the end of December 31, 2021, the ratio decreased to 1.89, suggesting a reduction in financial risk as the company relied less on debt financing.
However, the financial leverage ratio increased to 2.11 by the end of December 31, 2022, before falling again to 1.92 as of December 31, 2023. This fluctuation may indicate varying levels of leverage and financial risk management by the company during these years.
As of December 31, 2024, Altair Engineering Inc's financial leverage ratio further decreased to 1.69, potentially signaling a lower level of debt usage relative to equity in the company's capital structure.
Overall, Altair Engineering Inc's financial leverage ratio has shown fluctuations over the years, with the company at times relying more on debt financing and at other times reducing its financial leverage.
Peer comparison
Dec 31, 2024