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
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.