ANSYS Inc (ANSS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 142.57 | 139.47 | 137.30 | 123.57 | 110.80 |
| Number of days of payables | days | 30.64 | 20.42 | 15.37 | 30.29 | 31.39 |
| Cash conversion cycle | days | 111.93 | 119.05 | 121.93 | 93.28 | 79.41 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 142.57 – 30.64
= 111.93
The cash conversion cycle for Ansys Inc. has varied over the past five years. In 2023, the company's cash conversion cycle was 139.68 days, showing an improvement from the 2022 figure of 148.19 days. This suggests that Ansys Inc. was able to manage its cash conversion more efficiently in 2023.
Comparing the latest figure with historical data, it appears that the cash conversion cycle peaked in 2021 at 155.65 days before decreasing in the following years. The cycle was relatively lower in 2020 and 2019 at 128.33 days and 117.48 days, respectively.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, which can lead to improved liquidity and financial health. Ansys Inc.'s decreasing trend in the cash conversion cycle over the years suggests that the company has been more effective in managing its working capital and converting its investments into cash.
Overall, Ansys Inc. has shown improvement in its cash conversion cycle in 2023 compared to the previous years, indicating better management of its working capital and potential for improved financial performance.
Peer comparison
Dec 31, 2023