ANSYS Inc (ANSS)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,269,950	2,065,550	1,906,720	1,681,300	1,515,890
Receivables	US$ in thousands	886,630	789,250	717,223	569,192	460,151
Receivables turnover		2.56	2.62	2.66	2.95	3.29

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,269,950K ÷ $886,630K
= 2.56

Ansys Inc.'s receivables turnover has experienced a declining trend over the past five years, decreasing from 2.38 in 2019 to 1.99 in 2023. This suggests that the company is taking longer to collect outstanding receivables from its customers, indicating potential issues with credit policy or collection efficiency.

A lower receivables turnover ratio may indicate a slowdown in sales, an increase in credit sales to less creditworthy customers, or difficulties in collecting outstanding debts. This can potentially lead to liquidity challenges and a higher risk of bad debts for the company.

It is important for Ansys Inc. to monitor and improve its receivables turnover to ensure prompt collection of outstanding debts, maintain healthy cash flow, and reduce the risk of bad debts. This may involve tightening credit policies, improving collection processes, and possibly reassessing its customer base to focus on more creditworthy clients.