Altair Engineering Inc (ALTR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.25 | 0.27 | 0.27 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.23 | 0.24 | 0.26 | 0.27 | 0.27 | 0.35 | 0.36 | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.30 | 0.32 | 0.36 | 0.36 | 0.37 | 0.54 | 0.57 | 0.55 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Altair Engineering Inc's solvency ratios reveal its ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio for Altair Engineering Inc has been relatively stable over the periods examined, ranging from 0.16 to 0.27. This indicates that the company relies on debt to finance only a small portion of its assets.
The debt-to-capital ratio shows a similar trend, hovering between 0.23 and 0.36. This ratio suggests that Altair Engineering Inc uses debt as a moderate part of its capital structure.
The debt-to-equity ratio for Altair Engineering Inc ranges from 0.30 to 0.57, indicating that the company's equity is able to cover its debt obligations. However, the ratio shows some fluctuation, possibly due to variations in debt levels.
The financial leverage ratio, which measures the company's total debt relative to its equity, has fluctuated between 1.68 and 2.19. This indicates that Altair Engineering Inc has been using a significant amount of debt to finance its operations, which could pose risks in terms of financial stability.
Overall, Altair Engineering Inc's solvency ratios suggest a relatively conservative approach to debt financing, with a stable reliance on debt to support its assets and operations. However, the fluctuation in some ratios may warrant further investigation into the company's debt management strategies and financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.65 | 3.06 | 0.19 | -2.70 | -6.33 | -5.45 | -5.39 | -0.92 | 1.35 | 0.98 | 1.12 | 1.08 | 1.49 | 1.18 | 0.99 | 0.35 | 0.66 | 1.53 | 0.47 | 14.52 |
Altair Engineering Inc's interest coverage ratio has fluctuated significantly over the recent quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In the most recent quarter, as of March 31, 2024, Altair Engineering Inc's interest coverage ratio was 5.65, indicating that the company generated 5.65 times more operating income than the amount needed to cover its interest expenses. This demonstrates a strong ability to service its debt obligations.
However, looking back over the previous quarters, there are notable fluctuations in the interest coverage ratio. For example, in December 2023, the ratio was 3.06, showing a slight decline from the previous quarter. In contrast, in June 2019, the interest coverage ratio was significantly negative, indicating that the company's operating income was insufficient to cover its interest expenses during that period.
Overall, it is essential for Altair Engineering Inc to maintain a stable and healthy interest coverage ratio to ensure it can meet its debt obligations comfortably and demonstrate financial stability to investors and creditors. fluctuations in the interest coverage ratio could indicate changes in the company's financial health and operational performance.