ANSYS Inc (ANSS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	860,201	614,391	667,667	912,672	872,094
Short-term investments	US$ in thousands	189	183	361	479	288
Total current liabilities	US$ in thousands	889,294	794,836	778,492	728,825	695,140
Cash ratio		0.97	0.77	0.86	1.25	1.25

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($860,201K + $189K) ÷ $889,294K
= 0.97

The cash ratio for Ansys Inc. has fluctuated over the past five years. In 2023, the cash ratio stands at 1.02, indicating that the company had $1.02 in cash and cash equivalents for every $1 of current liabilities. This is an improvement compared to the previous year when the ratio was 0.84. However, it is lower than the ratios in 2020 and 2019, which were 1.31 and 1.32 respectively.

The cash ratio is a measure of a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone. A ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term obligations. Ansys Inc.'s cash ratio above 1 in all years indicates a strong liquidity position, with enough cash on hand to meet its current liabilities.

It is worth noting that while the cash ratio provides insight into a company's short-term liquidity, it should not be analyzed in isolation. It is recommended to assess the cash ratio in conjunction with other financial ratios and metrics to get a comprehensive understanding of the company's financial health.