ANSYS Inc (ANSS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.05% | 87.87% | 86.47% | 86.60% | 89.03% |
| Operating profit margin | 27.58% | 28.69% | 26.92% | 29.52% | 33.98% |
| Pretax margin | 26.09% | 27.85% | 27.03% | 29.38% | 34.47% |
| Net profit margin | 22.05% | 25.35% | 23.84% | 25.81% | 29.77% |
Ansys Inc.'s profitability ratios have shown some fluctuation over the past five years. The gross profit margin has generally remained high, ranging from 89.66% in 2021 to 91.62% in 2023. This indicates that the company is effectively managing its production costs and generating a healthy profit on its sales.
The operating profit margin has fluctuated more significantly, from 26.92% in 2021 to 28.69% in 2022, before decreasing to 27.58% in 2023. Although the operating profit margin fell slightly in 2023, it remains at a relatively healthy level, showing that Ansys Inc. is able to control its operating expenses efficiently to generate profit.
The pretax margin has also varied over the years, with a noticeable decline from 34.47% in 2019 to 26.09% in 2023. This indicates that the company's profitability before accounting for taxes has decreased over time, which could be attributed to changes in revenue, expenses, or other factors affecting the bottom line.
Similarly, the net profit margin has experienced a downward trend, declining from 29.77% in 2019 to 22.05% in 2023. This indicates that Ansys Inc. is retaining a lower percentage of its revenue as net profit in more recent years, which could be a concern for investors as it may impact earnings per share and overall returns.
Overall, while Ansys Inc. continues to maintain healthy profitability levels based on its high gross profit margin, there are signs of declining profitability at the operating and net profit levels in recent years. It would be important for the company to carefully monitor expenses and revenue generation to sustain and improve its profitability ratios in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.55% | 8.86% | 8.12% | 8.36% | 10.64% |
| Return on assets (ROA) | 6.83% | 7.83% | 7.19% | 7.30% | 9.33% |
| Return on total capital | 10.40% | 10.64% | 10.08% | 10.31% | 13.57% |
| Return on equity (ROE) | 9.28% | 10.76% | 10.14% | 10.59% | 13.07% |
Ansys Inc.'s profitability ratios show a trend of fluctuation over the past five years. The operating return on assets (Operating ROA) has ranged from 8.12% to 10.64%, with a slight decline from 2022 to 2023. This ratio indicates the company's ability to generate profits from its operations relative to its total assets.
Similarly, the return on assets (ROA) has varied between 6.83% and 9.33%, with a gradual decrease observed from 2020 to 2023. ROA reflects the overall profitability of the company, considering both operating and non-operating activities.
The return on total capital has ranged from 9.80% to 13.03%, showing a downward trend in recent years. This ratio evaluates the efficiency of the company in generating returns from the total capital employed, which includes both debt and equity.
Furthermore, the return on equity (ROE) has fluctuated between 9.28% and 13.07%, with a decline from 2022 to 2023. ROE indicates the profitability of the company from the perspective of its shareholders, reflecting how well the company is utilizing their equity investment.
Overall, the profitability ratios of Ansys Inc. suggest a mix of operational efficiency and return on investment, with some fluctuations in recent years. It is essential for stakeholders to monitor these ratios closely to understand the company's financial performance and sustainability.