ANSYS Inc (ANSS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	142.57	120.22	126.28	113.45	139.47	114.16	112.27	108.04	137.30	98.47	100.46	95.30	123.57	100.36	93.87	93.15	110.80	82.97	88.18	73.81
Number of days of payables	days	30.64	20.57	19.93	31.58	20.42	24.53	24.39	23.95	15.37	17.89	14.17	26.11	30.29	18.66	19.67	25.27	31.39	19.03	23.73	27.68
Cash conversion cycle	days	111.93	99.65	106.35	81.86	119.05	89.63	87.88	84.09	121.93	80.58	86.29	69.19	93.28	81.71	74.20	67.88	79.41	63.95	64.44	46.13

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 142.57 – 30.64
= 111.93

The cash conversion cycle of Ansys Inc., a measure of how efficiently the company manages its working capital, fluctuated over the past eight quarters. In Q4 2023, the cash conversion cycle was 139.68 days, indicating a longer period for the company to convert its investments in inventory and other resources into cash. This was significantly higher compared to Q3 2023, where the cycle was 113.98 days.

Ansys Inc. showed an improvement in its cash conversion cycle in Q1 2023, where it decreased to 93.95 days, reflecting the company's ability to manage its working capital more effectively. However, this was followed by an increase in Q2 2023 to 120.23 days, indicating a potential challenge in efficiently converting its resources into cash.

Comparing Q4 2023 to the same quarter in the previous year, there was a slight improvement as the cash conversion cycle decreased from 148.19 days in Q4 2022 to 139.68 days in Q4 2023. Overall, Ansys Inc. experienced fluctuations in its cash conversion cycle over the past eight quarters, suggesting potential variability in its working capital management effectiveness. Further analysis and monitoring of this metric will be essential for understanding the company's operational efficiency and financial performance.