Altair Engineering Inc (ALTR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,363,490	1,204,740	1,163,280	829,902	743,145
Total stockholders’ equity	US$ in thousands	711,331	569,736	613,197	378,586	354,707
Financial leverage ratio		1.92	2.11	1.90	2.19	2.10

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,363,490K ÷ $711,331K
= 1.92

Altair Engineering Inc's financial leverage ratio has fluctuated over the past five years, ranging from 1.90 to 2.19. A higher financial leverage ratio indicates that the company is relying more on debt to finance its operations and growth.

In 2023, Altair Engineering's financial leverage ratio decreased to 1.92 from 2.11 in 2022, suggesting a reduction in its reliance on debt compared to the previous year. This could be a positive sign as lower leverage ratios indicate less financial risk.

However, it is important to note that the company had a higher financial leverage ratio in 2020 and 2019, indicating that Altair Engineering had been more leveraged in those years. Overall, Altair Engineering's financial leverage ratio trend indicates some variability in its capital structure and level of debt utilization.