ANSYS Inc (ANSS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.00% | 88.05% | 87.87% | 86.47% | 86.60% |
| Operating profit margin | 28.21% | 27.58% | 28.69% | 26.92% | 29.52% |
| Pretax margin | 28.22% | 26.09% | 27.85% | 27.03% | 29.38% |
| Net profit margin | 22.62% | 22.05% | 25.35% | 23.84% | 25.81% |
ANSYS Inc has demonstrated a consistent and impressive gross profit margin performance, steadily increasing from 86.60% in 2020 to 89.00% in 2024. This indicates the company's ability to efficiently manage production costs and maintain a high level of profitability on its products/services.
The operating profit margin fluctuated slightly over the years, with a peak of 29.52% in 2020 and a slight decrease to 28.21% in 2024. Despite the variations, ANSYS Inc has generally maintained a healthy level of operating profitability relative to its revenue.
The pretax margin, representing profitability before taxes, also had fluctuations during the period, but overall showed resilience. Starting at 29.38% in 2020, the margin declined in 2023 before rebounding to 28.22% in 2024. This suggests that ANSYS Inc effectively manages its operational expenses and tax burdens.
ANYSYS Inc's net profit margin, indicating the final profitability after all expenses, declined from 25.81% in 2020 to 22.62% in 2024. This reduction may be attributed to changes in operational efficiency, revenue growth, or increased costs. However, the company maintained a strong profitability level despite the decline, showcasing its ability to generate profits relative to its net sales.
In conclusion, ANSYS Inc has demonstrated solid profitability performance overall, with consistent gross profit margins, a stable operating profit margin, and fluctuating but resilient pretax and net profit margins over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.92% | 8.55% | 8.86% | 8.12% | 8.36% |
| Return on assets (ROA) | 7.15% | 6.83% | 7.83% | 7.19% | 7.30% |
| Return on total capital | 11.20% | 10.40% | 10.64% | 10.08% | 10.31% |
| Return on equity (ROE) | 9.46% | 9.28% | 10.76% | 10.14% | 10.59% |
ANSYS Inc's profitability ratios show a relatively stable performance over the past five years.
1. Operating return on assets (Operating ROA) has shown a slight decrease from 8.36% in 2020 to 8.12% in 2021, followed by an increase to 8.92% in 2024. This ratio indicates that the company generated operating income of approximately 8-9% for every dollar of assets employed in its operations.
2. Return on assets (ROA) has fluctuated between 6.83% in 2023 and 7.83% in 2022. This ratio signifies the company's ability to generate profits from its total assets, reflecting a range of around 7-8%.
3. Return on total capital has shown a steady increase from 10.31% in 2020 to 11.20% in 2024, indicating the efficiency of the company in generating returns for both debt and equity holders.
4. Return on equity (ROE) has seen a decreasing trend, from 10.59% in 2020 to 9.46% in 2024. This ratio represents the return generated on shareholders' equity, implying a decline in profitability from the perspective of equity investors.
Overall, ANSYS Inc's profitability ratios suggest a mixed performance, with fluctuations in some ratios but a consistent improvement in return on total capital. The company may need to focus on maintaining stable profitability levels and addressing the decline in ROE to enhance shareholder value.