ANSYS Inc (ANSS)

Liquidity ratios

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
Current ratio 2.30 2.43 2.20 2.13 2.09 2.38 2.12 2.28 2.10 2.93 2.72 2.66 2.36 2.60 2.38 2.40 2.24 2.55 2.24 2.11
Quick ratio 1.96 2.13 1.91 1.81 1.77 2.08 1.81 1.95 1.78 2.64 2.44 2.31 2.03 2.26 2.09 2.05 1.92 2.24 1.91 1.74
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

Ansys Inc.'s liquidity ratios have shown a generally stable trend over the past eight quarters. The current ratio, a measure of short-term solvency, has fluctuated between 2.09 and 2.43, indicating that the company has consistently maintained strong liquidity to cover its current liabilities. The consistent current ratio above 2 suggests that Ansys Inc. can easily meet its short-term obligations.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also remained strong and consistent at the same levels as the current ratio. This indicates that the company has a sufficient level of liquid assets to cover its short-term liabilities without relying on inventory.

The cash ratio, which focuses solely on cash and cash equivalents in relation to current liabilities, has shown more variation compared to the current and quick ratios. However, the cash ratio has generally been above 1, indicating that Ansys Inc. has maintained a healthy level of cash reserves relative to its current liabilities throughout the periods analyzed.

Overall, based on the liquidity ratios, Ansys Inc. appears to have a solid liquidity position, with sufficient liquid assets to meet its short-term obligations comfortably.

Additional liquidity measure

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 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

The cash conversion cycle of Ansys Inc. has fluctuated over the past eight quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was relatively high in Q4 2022 at 148.19 days but decreased to 93.95 days in Q1 2023, indicating an improvement in efficiency.

Subsequently, in the most recent quarter, Q4 2023, the cash conversion cycle increased to 139.68 days, suggesting the company may be taking longer to convert its investments into cash compared to the previous quarter. This increase could be due to factors such as changes in inventory management, payment terms with suppliers, or collection practices with customers.

Overall, Ansys Inc.'s cash conversion cycle has shown variability, and it is important for the company to continue monitoring and managing this metric to ensure efficient operations and cash flow management.