ANSYS Inc (ANSS)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.01 | 2.30 | 2.09 | 2.10 | 2.36 |
| Quick ratio | 2.69 | 1.96 | 1.77 | 1.78 | 2.03 |
| Cash ratio | 1.59 | 0.97 | 0.77 | 0.86 | 1.25 |
ANSYS Inc's liquidity ratios have shown some fluctuations over the years. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, has generally been healthy, ranging from 2.09 to 3.01 over the period from 2020 to 2024. This indicates that ANSYS Inc has a comfortable level of current assets to meet its current liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also generally been solid, fluctuating between 1.77 and 2.69 during the same period. This implies that ANSYS Inc can cover its short-term obligations without relying on selling its inventory.
The cash ratio, which is the most conservative liquidity ratio and only includes cash and cash equivalents in current assets, has varied from 0.77 to 1.59. While this ratio has shown more fluctuation compared to the current and quick ratios, ANSYS Inc still maintains a reasonable level of cash to cover its immediate liabilities.
Overall, based on the liquidity ratios, ANSYS Inc appears to have maintained a strong liquidity position over the years, with a solid ability to meet its short-term financial obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 112.52 | 111.93 | 119.05 | 121.93 | 93.28 |
The cash conversion cycle of ANSYS Inc has shown some fluctuations over the past five years. It increased from 93.28 days in December 2020 to 121.93 days in December 2021, indicating a longer time taken to convert resources into cash. However, there was a slight improvement in the cycle in December 2022 to 119.05 days, although it remained relatively high.
By December 2023, the cash conversion cycle decreased to 111.93 days, suggesting a more efficient management of cash flows and working capital during that period. In December 2024, the cycle increased slightly to 112.52 days, remaining relatively stable compared to the previous year.
Overall, ANSYS Inc's cash conversion cycle has shown some variability over the years, with a general trend of improvement from 2021 to 2023, but with a slight increase again in 2024. It is important for the company to continue monitoring and managing its working capital effectively to ensure optimal cash flow efficiency.