ANSYS Inc (ANSS)

Working capital 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
Total current assets US$ in thousands 2,049,570 1,664,120 1,638,570 1,719,240 1,555,480
Total current liabilities US$ in thousands 889,294 794,836 778,492 728,825 695,140
Working capital turnover 1.96 2.38 2.22 1.70 1.76

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,269,950K ÷ ($2,049,570K – $889,294K)
= 1.96

Ansys Inc.'s working capital turnover has fluctuated over the past five years, ranging from a low of 1.70 in 2020 to a high of 2.38 in 2022. The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales revenue. A higher ratio signifies that the company is efficiently managing its working capital to support revenue generation.

In the case of Ansys Inc., the decreasing trend from 2.38 in 2022 to 1.96 in 2023 suggests a potential decline in the efficiency of utilizing its working capital to generate sales. However, it is still above 1, indicating that the company is effectively using its working capital to support its operations. Further analysis is recommended to understand the underlying reasons for the fluctuations in the ratio and to assess the company's overall liquidity and operational efficiency.


Peer comparison

Dec 31, 2023