ANSYS Inc (ANSS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — — — — — — — — — — — — —
Receivables turnover 2.56 3.04 2.89 3.22 2.62 3.20 3.25 3.38 2.66 3.71 3.63 3.83 2.95 3.64 3.89 3.92 3.29 4.40 4.14 4.95
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
Working capital turnover 1.96 2.38 2.82 2.93 2.38 2.41 2.84 2.41 2.22 1.62 1.75 1.68 1.70 1.72 2.03 2.00 1.76 1.97 2.22 2.37

Ansys Inc.'s activity ratios provide insights into its efficiency in managing its resources and generating sales revenue.

1. Receivables Turnover: Ansys Inc.'s receivables turnover has been relatively stable over the past eight quarters, ranging from 2.07 to 2.73. This indicates that the company collects its accounts receivable approximately 2.07 to 2.73 times per year, with higher turnover ratios generally being preferable as they suggest a shorter collection period.

2. Payables Turnover: Ansys Inc.'s payables turnover has also shown consistency over the quarters, ranging from 8.29 to 13.06. A high payables turnover ratio signifies that the company is efficiently managing its trade payables by paying suppliers quickly, which can improve relationships and potentially lead to discounts.

3. Working Capital Turnover: Ansys Inc.'s working capital turnover has varied between 2.38 and 2.93 over the past eight quarters. This ratio indicates how well the company is utilizing its working capital to generate sales, with a higher turnover ratio suggesting more efficient utilization of resources.

Overall, Ansys Inc.'s activity ratios reflect a reasonably effective management of its accounts receivable, trade payables, and working capital in supporting its sales operations. Monitoring these ratios can help stakeholders assess the company's operational efficiency and financial performance over time.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 142.57 120.22 126.28 113.45 139.47 114.16 112.27 108.04 137.30 98.47 100.46 95.30 123.57 100.36 93.87 93.15 110.80 82.97 88.18 73.81
Number of days of payables days 30.64 20.57 19.93 31.58 20.42 24.53 24.39 23.95 15.37 17.89 14.17 26.11 30.29 18.66 19.67 25.27 31.39 19.03 23.73 27.68

Ansys Inc.'s activity ratios provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

- Days of Inventory on Hand (DOH): Unfortunately, specific data for this ratio is not available for the periods provided. However, generally, a lower DOH indicates efficient inventory management, as it implies that inventory is moving quickly, which can lead to lower holding costs and reduced risk of inventory obsolescence.

- Days of Sales Outstanding (DSO): Ansys Inc.'s DSO has shown fluctuations over the periods provided, ranging from a low of 133.90 days in Q1 2022 to a high of 183.35 days in Q4 2023. A high DSO value indicates that the company takes an extended period to collect payments from customers, potentially leading to cash flow challenges. An improvement in DSO would indicate effective accounts receivable management.

- Number of Days of Payables: The data shows variability in the number of days of payables for Ansys Inc., ranging from 27.95 days in Q2 2023 to 44.05 days in Q1 2023. A longer period of payables indicates that the company takes more time to pay its suppliers, potentially benefiting from increased working capital. However, excessively extending payables may strain supplier relationships.

Overall, Ansys Inc. should aim to minimize DSO and DOH while maintaining a balance in the number of days of payables to optimize its working capital management and improve overall operational efficiency.

Long-term

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
Fixed asset turnover 29.18 28.62 27.66 26.60 25.55 26.07 24.59 23.25 21.69 20.65 19.60 18.66 17.42 17.10 17.13 18.23 18.12 20.56 20.36 20.98
Total asset turnover 0.31 0.32 0.33 0.33 0.31 0.33 0.33 0.33 0.30 0.31 0.31 0.30 0.28 0.32 0.33 0.33 0.31 0.40 0.40 0.39

The fixed asset turnover ratio for Ansys Inc. has been consistently increasing over the past eight quarters, indicating that the company is generating more revenue from its fixed assets. This suggests that Ansys is utilizing its long-term assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable, hovering around 0.32 to 0.33 over the same period. This ratio measures the efficiency of the company in generating sales from all its assets, including both fixed and current assets. While the total asset turnover ratio is not increasing, it is important to note that Ansys is still effectively utilizing its total assets to generate revenue.

Overall, Ansys Inc. appears to be effectively managing its long-term assets, as evidenced by the increasing trend in the fixed asset turnover ratio. Efficient utilization of fixed assets can lead to improved profitability and return on investment for the company. However, it is important for Ansys to continue to monitor and optimize its asset utilization to sustain and enhance its financial performance in the long term.