ANSYS Inc (ANSS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 147.82 | 142.57 | 139.47 | 137.30 | 123.57 |
| Number of days of payables | days | 35.30 | 30.64 | 20.42 | 15.37 | 30.29 |
| Cash conversion cycle | days | 112.52 | 111.93 | 119.05 | 121.93 | 93.28 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 147.82 – 35.30
= 112.52
The cash conversion cycle of ANSYS Inc has shown varying trends over the past five years. In December 2020, the company's cash conversion cycle was 93.28 days, which increased to 121.93 days by December 2021, indicating a lengthening of the cycle. However, in the subsequent years, the trend reversed slightly as the cycle decreased to 119.05 days by December 2022, followed by a further reduction to 111.93 days in December 2023. By December 2024, the cycle slightly increased to 112.52 days.
Overall, the cash conversion cycle of ANSYS Inc has fluctuated within a range, with some improvements seen in recent years. This metric is important for assessing the efficiency of the company's working capital management in converting its resources into cash flow. A lower cycle duration is generally indicative of better operational efficiency and liquidity management.
Peer comparison
Dec 31, 2024