Altair Engineering Inc (ALTR)
Financial leverage ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
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Total assets | US$ in thousands | 1,445,650 | 1,377,870 | 1,335,960 | 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 |
Total stockholders’ equity | US$ in thousands | 857,189 | 836,900 | 791,306 | 762,928 | 711,331 | 634,118 | 620,215 | 606,905 | 569,736 | 535,529 | 558,172 | 619,209 | 613,981 | 603,046 | 400,129 | 399,813 | 379,370 | 360,239 | 355,734 | 358,497 |
Financial leverage ratio | 1.69 | 1.65 | 1.69 | 1.81 | 1.92 | 1.97 | 2.02 | 2.02 | 2.11 | 2.10 | 2.02 | 1.83 | 1.89 | 1.68 | 2.05 | 2.05 | 2.19 | 2.16 | 2.07 | 2.05 |
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 measures the extent to which the company relies on debt to finance its operations and growth. The financial leverage ratio depicts the proportion of the company's assets that are financed through debt compared to equity.
From March 31, 2020, to December 31, 2024, Altair Engineering Inc's financial leverage ratio has fluctuated within a range of 1.65 to 2.19. The trend indicates variations in the company's capital structure and its ability to manage financial risk.
The company experienced an increase in its financial leverage ratio from 2.05 on March 31, 2020, to a peak of 2.19 on December 31, 2020. This increase suggests that Altair Engineering Inc relied more on debt financing during this period.
Subsequently, the financial leverage ratio decreased to 1.68 on September 30, 2021, and further declined to 1.65 on September 30, 2024. These lower ratios indicate a reduced dependence on debt in the company's capital structure or potentially an increase in equity financing.
However, there were fluctuations in the financial leverage ratio over the years, with the ratio hovering around the 2.00 mark in some quarters. This intermittent increase in leverage may indicate strategic decisions to utilize debt for funding growth opportunities or investments in the business.
Overall, Altair Engineering Inc's financial leverage ratio has shown variability over the analyzed period, reflecting the company's management of its debt and equity mix to support its business activities and financial performance.
Peer comparison
Dec 31, 2024