ANSYS Inc (ANSS)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,544,810 2,269,950 2,065,550 1,906,720 1,681,300
Total current assets US$ in thousands 2,831,490 2,049,570 1,664,120 1,638,570 1,719,240
Total current liabilities US$ in thousands 941,184 889,294 794,836 778,492 728,825
Working capital turnover 1.35 1.96 2.38 2.22 1.70

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,544,810K ÷ ($2,831,490K – $941,184K)
= 1.35

The working capital turnover for ANSYS Inc has shown fluctuating trends over the past five years. It increased from 1.70 in December 31, 2020, to 2.22 in December 31, 2021, indicating an improvement in the company's ability to efficiently utilize its working capital to generate sales. This upward trend continued as the ratio further rose to 2.38 by December 31, 2022, reflecting more effective management of working capital.

However, in December 31, 2023, the working capital turnover decreased to 1.96, showing a slight dip compared to the previous year. This could suggest a potential decrease in efficiency in the utilization of working capital during that period. The ratio then saw a more significant decline to 1.35 by December 31, 2024, indicating a potential challenge in efficiently converting working capital into sales.

Overall, the varying trend in the working capital turnover of ANSYS Inc highlights the importance of closely monitoring and managing working capital efficiency to support sustainable business operations and growth.