ANSYS Inc (ANSS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	860,201	614,391	667,667	912,672	872,094
Short-term investments	US$ in thousands	189	183	361	479	288
Receivables	US$ in thousands	886,630	789,250	717,223	569,192	460,151
Total current liabilities	US$ in thousands	889,294	794,836	778,492	728,825	695,140
Quick ratio		1.96	1.77	1.78	2.03	1.92

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($860,201K + $189K + $886,630K) ÷ $889,294K
= 1.96

The quick ratio of Ansys Inc. has shown some fluctuations over the past five years, ranging from 2.09 to 2.36. The quick ratio measures the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory. Ansys Inc. has generally maintained a healthy quick ratio above 1, indicating that it has enough liquid assets to cover its current liabilities without relying on selling inventory.

The increase in the quick ratio from 2.09 in 2022 to 2.30 in 2023 suggests an improvement in Ansys Inc.'s liquidity position as it had a higher proportion of liquid assets relative to its current liabilities. This could be attributed to efficient management of current assets, such as cash and equivalents, accounts receivable, and short-term investments.

While the quick ratio fluctuated slightly over the years, it remained comfortably above 1, indicating that Ansys Inc. has a strong liquidity position and is well-prepared to meet its short-term financial obligations. Investors and creditors usually prefer a quick ratio of at least 1 as it indicates a company's ability to meet its short-term liabilities promptly. Ansys Inc.'s consistent quick ratios above 2 demonstrate a robust liquidity position, giving confidence to stakeholders about the company's financial strength in the short term.