Altair Engineering Inc (ALTR)

Financial leverage 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
Total assets	US$ in thousands	1,379,910	1,363,490	1,251,990	1,255,810	1,226,170	1,204,740	1,124,930	1,128,510	1,133,690	1,163,280	1,014,480	820,216	817,913	829,902	779,703	736,846	734,654	743,145	716,700	729,720
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
Financial leverage ratio		1.81	1.92	1.97	2.02	2.02	2.11	2.10	2.02	1.83	1.90	1.68	2.05	2.05	2.19	2.17	2.08	2.06	2.10	2.09	2.03

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,379,910K ÷ $762,928K
= 1.81

Altair Engineering Inc's financial leverage ratio has exhibited fluctuations over the past few quarters, ranging from 1.68 to 2.19. The company's financial leverage ratio peaked at 2.19 in Q4 2020 and has since shown some variability, with the latest reported ratio standing at 1.81 as of March 31, 2024.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to fund its operations and investments. A higher financial leverage ratio can amplify returns on equity when the company is performing well, but it also increases the financial risk associated with the business due to higher interest payments and debt obligations.

Altair Engineering Inc's declining financial leverage ratio trend from Q4 2020 to Q1 2024 suggests a potential deleveraging strategy or a shift towards a more conservative capital structure. It is important for investors and stakeholders to monitor the company's leverage levels relative to its industry peers and overall economic conditions to assess the potential impact on the company's financial stability and growth prospects.