ANSYS Inc (ANSS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 2.47 | 2.56 | 2.62 | 2.66 | 2.95 |
| Payables turnover | 10.34 | 11.91 | 17.88 | 23.75 | 12.05 |
| Working capital turnover | 1.35 | 1.96 | 2.38 | 2.22 | 1.70 |
ANSYS Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.
- Inventory turnover is not available for the years provided, indicating that the company does not disclose this information or does not carry significant inventories relative to its sales.
- Receivables turnover has been gradually decreasing from 2.95 in 2020 to 2.47 in 2024. This suggests that ANSYS Inc is taking longer to collect payments from customers, which may indicate potential issues with credit policies or customer payment habits.
- Payables turnover has shown fluctuations over the years, with a significant increase in 2021 followed by a gradual decline. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can sometimes signal potential cash flow issues or strained supplier relationships.
- Working capital turnover has also fluctuated during the period, peaking in 2022 before declining in subsequent years. This ratio measures how effectively working capital is being utilized to generate sales. The decreasing trend suggests a potential decrease in efficiency in utilizing working capital for revenue generation.
Overall, the trend analysis of ANSYS Inc's activity ratios reveals areas of possible inefficiencies in accounts receivable collection and working capital utilization that may require further investigation and management attention to improve overall operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 147.82 | 142.57 | 139.47 | 137.30 | 123.57 |
| Number of days of payables | days | 35.30 | 30.64 | 20.42 | 15.37 | 30.29 |
Based on the provided data for ANSYS Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
Unfortunately, specific data regarding ANSYS Inc's days of inventory on hand is not available for the years 2020 to 2024. As DOH indicates the average number of days a company holds its inventory before selling it, the absence of this data limits our ability to assess ANSYS Inc's inventory management efficiency over the years.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding for ANSYS Inc have shown an increasing trend from 123.57 days in 2020 to 147.82 days in 2024. This indicates that it took the company longer to collect its accounts receivable over the years. A higher DSO value may suggest potential issues with the company's credit policies, collection efforts, or the overall quality of its revenue.
3. Number of Days of Payables:
ANSYS Inc's number of days of payables has fluctuated over the years, starting at 30.29 days in 2020, dropping to 15.37 days in 2021, and then rising to 35.30 days in 2024. A lower number of days of payables indicates that the company is taking less time to pay its suppliers, which may affect its working capital management and liquidity. Conversely, a higher number of days of payables could indicate a potential strain on supplier relationships or inefficiencies in payables management.
In conclusion, while ANSYS Inc's DSO and days of payables ratios provide some insights into its receivables and payables management efficiency, the lack of data for days of inventory on hand hinders a comprehensive assessment of the company's overall activity ratios and working capital management. It would be beneficial to have additional information on inventory turnover to better evaluate ANSYS Inc's operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 28.39 | 29.18 | 25.55 | 21.69 | 17.42 |
| Total asset turnover | 0.32 | 0.31 | 0.31 | 0.30 | 0.28 |
The data provided shows the trend in ANSYS Inc's long-term activity ratios over the five-year period from December 31, 2020, to December 31, 2024.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets.
- ANSYS Inc's Fixed Asset Turnover ratio increased steadily from 17.42 in 2020 to 28.39 in 2024.
- This indicates that the company has been able to generate more revenue relative to its investment in fixed assets over the years.
- The significant increase in the Fixed Asset Turnover ratio signifies improved efficiency in asset utilization, which is a positive indicator for the company's operations.
2. Total Asset Turnover:
- The Total Asset Turnover ratio represents how efficiently a company is generating revenue from its total assets.
- ANSYS Inc's Total Asset Turnover ratio also showed a positive trend, increasing from 0.28 in 2020 to 0.32 in 2024.
- The rising Total Asset Turnover ratio suggests that the company has been able to generate more revenue for every dollar of assets held during the period.
- This improvement indicates better asset utilization and effective management of resources within the company.
Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios for ANSYS Inc over the five-year period signifies improved efficiency in generating revenue from its asset base. This indicates that the company has been utilizing its fixed assets and total assets more effectively to drive revenue growth, which is a positive sign for investors and stakeholders.