ANSYS Inc (ANSS)

Working capital 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
Revenue (ttm)	US$ in thousands	2,269,949	2,158,956	2,172,672	2,149,923	2,065,553	2,027,105	1,995,762	1,968,566	1,906,715	1,874,734	1,800,531	1,739,538	1,681,297	1,543,839	1,520,773	1,503,747	1,515,892	1,445,096	1,390,615	1,327,893
Total current assets	US$ in thousands	2,049,570	1,542,500	1,414,240	1,384,080	1,664,120	1,449,880	1,327,220	1,449,880	1,638,570	1,756,680	1,622,360	1,660,950	1,719,240	1,458,720	1,294,260	1,290,700	1,555,480	1,206,230	1,133,340	1,062,810
Total current liabilities	US$ in thousands	889,294	634,431	643,837	650,915	794,836	609,690	624,699	634,620	778,492	600,431	595,385	624,047	728,825	561,847	543,806	537,142	695,140	473,830	505,666	503,410
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,269,949K ÷ ($2,049,570K – $889,294K)
= 1.96

The working capital turnover ratio for Ansys Inc. has shown variability over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations and sales.

In Q1 2023, the working capital turnover ratio was 2.93, the highest among the quarters analyzed, indicating that Ansys Inc. was able to generate $2.93 in revenue for every dollar of working capital invested during that period. This suggests a strong efficiency in utilizing its current assets to generate sales.

Conversely, in Q4 2023, the working capital turnover ratio decreased to 1.96, the lowest ratio in the dataset. This decline could signal potential inefficiencies in managing working capital to support sales activities during that quarter.

Overall, the fluctuation in the working capital turnover ratio for Ansys Inc. over the past quarters suggests that the company's management of current assets and liabilities to support revenue generation has been mixed. Further analysis of the company's working capital management practices and business operations may be necessary to understand the reasons behind the variations in the ratio and identify areas for improvement.