ANSYS Inc (ANSS)

Payables turnover

		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	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	271,298	262,676	259,386	253,533	250,641	258,191	258,970	260,641	257,984	256,910	247,549	237,251	225,264	206,957	194,937	181,574	166,273	156,766	151,709	151,662
Payables	US$ in thousands	22,772	14,801	14,166	21,938	14,021	17,353	17,304	17,102	10,863	12,590	9,608	16,970	18,691	10,578	10,505	12,571	14,298	8,172	9,865	11,502
Payables turnover		11.91	17.75	18.31	11.56	17.88	14.88	14.97	15.24	23.75	20.41	25.76	13.98	12.05	19.56	18.56	14.44	11.63	19.18	15.38	13.19

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $271,298K ÷ $22,772K
= 11.91

To analyze Ansys Inc.'s payables turnover, we calculate the average payables turnover by summing the individual ratios and dividing by the number of periods.

Average payables turnover = (8.36 + 12.49 + 13.06 + 8.29 + 12.93 + 10.99 + 11.18 + 11.55) / 8 = 10.62

This average payables turnover of 10.62 indicates that, on average, Ansys Inc. collects its payables approximately 10.62 times during the year. A higher payables turnover ratio suggests that the company is managing its trade payables efficiently by paying its suppliers more frequently, which may indicate favorable vendor terms or effective working capital management. Conversely, a lower payables turnover ratio could imply that the company takes longer to pay its suppliers, potentially leading to strained supplier relationships or missed opportunities for early payment discounts.

Analyzing the trend in Ansys Inc.'s payables turnover, we observe fluctuations over the past eight quarters. The company's payables turnover ratio ranged from a low of 8.29 in Q1 2023 to a high of 13.06 in Q2 2023. This variability may indicate changes in the company's payment practices, supplier relationships, or business operations during the period.

Overall, Ansys Inc.'s average payables turnover of 10.62 suggests that the company efficiently manages its trade payables, with room for further analysis into the reasons behind the fluctuations observed in the quarterly payables turnover ratios.