ANSYS Inc (ANSS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	860,201	639,342	477,875	507,689	614,391	632,509	517,303	657,421	667,667	1,080,840	957,704	987,427	912,672	844,741	744,546	717,748	872,094	732,684	631,455	607,391
Short-term investments	US$ in thousands	189	171	137	165	183	194	332	344	361	527	504	516	479	468	433	282	288	218	241	237
Total current liabilities	US$ in thousands	889,294	634,431	643,837	650,915	794,836	609,690	624,699	634,620	778,492	600,431	595,385	624,047	728,825	561,847	543,806	537,142	695,140	473,830	505,666	503,410
Cash ratio		0.97	1.01	0.74	0.78	0.77	1.04	0.83	1.04	0.86	1.80	1.61	1.58	1.25	1.50	1.37	1.34	1.25	1.55	1.25	1.21

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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations. Ansys Inc.'s cash ratio fluctuated over the past eight quarters, ranging from 0.83 to 1.15.

In Q4 2023, the cash ratio was 1.02, showing a slight decrease from the previous quarter but remaining above 1, indicating the company can cover all of its current liabilities with its available cash. This suggests a healthy liquidity position.

Looking at the trend over the past year, Ansys Inc. experienced some variability in its cash ratio, with the highest ratio of 1.15 in Q1 2022 and the lowest of 0.83 in Q2 2023. However, the company generally maintained a cash ratio above 1, reflecting a consistent ability to meet short-term obligations using cash on hand.

Overall, Ansys Inc.'s cash ratio indicates that the company has generally maintained a solid liquidity position, ensuring it can meet its short-term financial obligations without relying heavily on external financing.