ANSYS Inc (ANSS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 271,298 | 250,641 | 257,984 | 225,264 | 166,273 |
| Payables | US$ in thousands | 22,772 | 14,021 | 10,863 | 18,691 | 14,298 |
| Payables turnover | 11.91 | 17.88 | 23.75 | 12.05 | 11.63 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $271,298K ÷ $22,772K
= 11.91
Ansys Inc.'s payables turnover ratio has fluctuated over the past five years. The ratio decreased from 18.16 in 2021 to 8.36 in 2023, indicating a significant decline in the speed at which the company is paying its suppliers.
A high payables turnover ratio is generally favorable as it suggests that a company is efficiently managing its accounts payable by paying off supplier invoices quickly. However, a steep decline in the ratio could also signal liquidity issues or strained relationships with suppliers.
It's important to further investigate the reasons behind the sharp decrease in Ansys Inc.'s payables turnover ratio in 2023 to determine if there are any underlying operational or financial challenges impacting the company's ability to efficiently manage its accounts payable. Additionally, comparing the ratio to industry benchmarks and the company's historical data may provide further insights into its financial health and performance.
Peer comparison
Dec 31, 2023