ANSYS Inc (ANSS)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 765,887 639,283 598,041 527,759 504,913
Long-term debt US$ in thousands 754,208 753,891 753,574 753,576 798,118
Total stockholders’ equity US$ in thousands 6,086,440 5,390,360 4,865,850 4,484,050 4,097,870
Return on total capital 11.20% 10.40% 10.64% 10.08% 10.31%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $765,887K ÷ ($754,208K + $6,086,440K)
= 11.20%

ANSYS Inc's return on total capital has shown consistency and improvement over the years. The return on total capital was 10.31% in December 2020 and slightly decreased to 10.08% in December 2021. However, the company managed to increase its return in the subsequent years, with a notable rise to 11.20% by December 2024. This indicates that ANSYS Inc has been effectively utilizing its total capital to generate returns for its stakeholders. The overall trend suggests a solid performance in capital efficiency and profitability over the period under consideration.