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.
Peer comparison
Dec 31, 2023