ANSYS Inc (ANSS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.10 | 0.11 | 0.12 | 0.13 |
| Debt-to-capital ratio | 0.11 | 0.12 | 0.13 | 0.14 | 0.16 |
| Debt-to-equity ratio | 0.12 | 0.14 | 0.15 | 0.17 | 0.19 |
| Financial leverage ratio | 1.32 | 1.36 | 1.37 | 1.41 | 1.45 |
ANSYS Inc has shown a consistent improvement in its solvency ratios over the years based on the data provided. The Debt-to-assets ratio has decreased from 0.13 in 2020 to 0.09 in 2024, indicating that the company is relying less on debt to finance its assets. Similarly, the Debt-to-capital ratio has decreased from 0.16 in 2020 to 0.11 in 2024, signifying a decrease in the use of debt capital in the company's capital structure.
Moreover, the Debt-to-equity ratio has also reduced from 0.19 in 2020 to 0.12 in 2024, highlighting a decline in the reliance on debt to fund the company's operations. The Financial leverage ratio has followed a downward trend from 1.45 in 2020 to 1.32 in 2024, indicating a reduction in the company's financial leverage and its dependency on debt for financing.
Overall, the declining trend in ANSYS Inc's solvency ratios suggests a strengthening financial position and reduced financial risk, as the company is becoming less dependent on debt financing over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 16.01 | 13.56 | 26.32 | 42.54 | 45.95 |
The interest coverage ratio of ANSYS Inc has shown a declining trend over the years. As of December 31, 2020, the ratio stood at a healthy level of 45.95, indicating that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses nearly 46 times. However, by December 31, 2024, the ratio decreased to 16.01, signaling a decrease in the company's ability to cover its interest payments. This declining trend raises concerns about ANSYS Inc's ability to meet its interest obligations from its operational earnings in the future. It is important for investors and stakeholders to closely monitor this ratio and evaluate the company's financial health and liquidity position.