ANSYS Inc (ANSS)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	147.82	120.06	117.64	112.56	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
Number of days of payables	days	35.30	21.59	33.38	37.39	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
Cash conversion cycle	days	112.52	98.47	84.26	75.17	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

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 some fluctuations over the past few years. The cycle measures the time it takes for a company to convert its investment in inventory into cash from sales.

Starting at around 67.88 days on March 31, 2020, the cycle increased to 121.93 days by December 31, 2021, indicating a significant delay in receiving cash from sales relative to the investment in inventory and accounts receivable. This could imply inefficiencies in managing inventory and collection of receivables.

However, there was a slight improvement in the cash conversion cycle by March 31, 2024, to approximately 75.17 days, suggesting a more efficient management of working capital during this period. Monitoring this cycle is crucial for ANSYS Inc to ensure optimal cash flow management and to identify any areas for improvement in the conversion of assets into cash.