ANSYS Inc (ANSS)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	639,283	598,041	527,759	504,913	526,044
Long-term debt	US$ in thousands	753,891	753,574	753,576	798,118	423,531
Total stockholders’ equity	US$ in thousands	5,390,360	4,865,850	4,484,050	4,097,870	3,453,380
Return on total capital		10.40%	10.64%	10.08%	10.31%	13.57%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $639,283K ÷ ($753,891K + $5,390,360K)
= 10.40%

Ansys Inc.'s return on total capital has demonstrated a consistent trend over the past five years. The company's return on total capital has ranged from 9.80% to 13.03%, with the most recent figure standing at 10.19% in 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders over the years. Although there has been some variability in the ratio, it has generally remained above 10%, which suggests that Ansys Inc. has been efficient in deploying its capital to generate profits. Further analysis of the company's operational and financial performance may provide deeper insights into the factors influencing its return on total capital.