Altair Engineering (Altair Engineering) Interest Coverage

: 14.74 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Altair Engineering's Operating Income for the three months ended in Dec. 2023 was $22.6 Mil. Altair Engineering's Interest Expense for the three months ended in Dec. 2023 was $-1.5 Mil. Altair Engineering's interest coverage for the quarter that ended in Dec. 2023 was 14.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Altair Engineering's Interest Coverage or its related term are showing as below:

ALTR' s Interest Coverage Range Over the Past 10 Years
Min: 0.04 Med: 1.29 Max: 123.22
Current: 0.04

ALTR's Interest Coverage is ranked worse than
99.94% of 1601 companies
in the Software industry
Industry Median: 29.56 vs ALTR: 0.04

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Altair Engineering Interest Coverage Historical Data

The historical data trend for Altair Engineering's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Altair Engineering Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.29

1.01

1.02

0.04

Altair Engineering Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.02	3.40	-	-	14.74

Competitive Comparison

For the Software - Infrastructure subindustry, Altair Engineering's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Altair Engineering Interest Coverage Distribution

For the Software industry and Technology sector, Altair Engineering's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Altair Engineering's Interest Coverage falls into.

Altair Engineering Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Altair Engineering's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Altair Engineering's Interest Expense was $-6.1 Mil. Its Operating Income was $0.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $248.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	0.243	/	-6.116
	=	0.04

Altair Engineering's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Altair Engineering's Interest Expense was $-1.5 Mil. Its Operating Income was $22.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $248.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	22.59	/	-1.533
	=	14.74

The higher the ratio, the stronger the company's Financial Strength is.

Altair Engineering (NAS:ALTR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Altair Engineering Interest Coverage Related Terms

Thank you for viewing the detailed overview of Altair Engineering's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Altair Engineering (Altair Engineering) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Altair Engineering Inc (NAS:ALTR) » Definitions » Interest Coverage

Comparable Companies

DLO TENB RELY AFRM S WIX INFA TDC QLYS FIVN MSFT ORCL ADBE PANW SNPS VMW FTNT CRWD PLTR SPLK

Traded in Other Exchanges

ALTR:Mexico 8A2:Germany 8A2:Germany

Address

1820 East Big Beaver Road, Troy, MI, USA, 48083

Website

https://www.altair.com

Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.

Executives

James Ralph Scapa	director, 10 percent owner, officer: Chief Executive Officer	1820 E BIG BEAVER RD, TROY MI 48083
James R. Scapa Declaration Of Trust	10 percent owner	1820 E BIG BEAVER RD, TROY MI 48083
Jrs Investments Llc	10 percent owner	1820 E BIG BEAVER RD, TROY MI 48083
Gc Investments Llc	10 percent owner	1820 E BIG BEAVER RD, TROY MI 48083
George J Christ	10 percent owner	1820 E BIG BEAVER RD, TROY MI 48083
Teresa A Harris	director	1820 E BIG BEAVER RD, TROY MI 48083
Christ Revocable Trust	10 percent owner	1820 E BIG BEAVER RD, TROY MI 48083
Ravi Kunju	officer: Chief Product Strategy Officer	C/O ALTAIR ENGINEERING INC., 1820 E. BIG BEAVER RD., TROY MI 48083
Raoul Maitra	officer: Chief Legal Officer	C/O ALTAIR ENGINEERING INC., 1820 E. BIG BEAVER ROAD, TROY MI 48083
Jeffrey Marraccini	officer: See Remarks	C/O ALTAIR ENGINEERING INC., 1820 E. BIG BEAVER RD., TROY MI 48083
Amy Messano	officer: Chief Marketing Officer	1820 E. BIG BEAVER ROAD, TROY MI 48083
Mahalingam Srikanth	officer: See Remarks	1820 E BIG BEAVER RD, TROY MI 48083
Gilma Saravia	officer: Chief People Officer	C/O ALTAIR ENGINEERING INC., 1820 E. BIG BEAVER ROAD, TROY MI 48083
Nelson Dias	officer: Executive Vice President	1820 E BIG BEAVER RD, TROY MI 48083
Uwe Schramm	officer: See Remarks	1820 E BIG BEAVER RD, TROY MI 48083