ANSYS Inc (ANSS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.12	0.13	0.14	0.16	0.11

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $753,891K ÷ ($753,891K + $5,390,360K)
= 0.12

The debt-to-capital ratio of Ansys Inc. has exhibited fluctuations over the past five years. The ratio has ranged from 0.12 to 0.16 during this period. A decreasing trend was observed from 2019 to 2022, with the ratio declining from 0.13 to 0.13. However, in 2023, there was a slight uptick in the ratio to 0.12.

A debt-to-capital ratio below 1 indicates that Ansys Inc. relies more on equity financing than debt to fund its operations and growth. The decreasing trend from 2019 to 2022 suggests that the company may have been reducing its debt levels relative to its total capital, which can be interpreted positively as it may indicate improved financial stability and lower financial risk.

The slight increase in the debt-to-capital ratio in 2023 could suggest a shift in the company's financing strategy towards taking on slightly more debt relative to its capital. This could have been driven by various factors such as strategic investments, acquisitions, or changes in interest rates.

Overall, a low and relatively stable debt-to-capital ratio indicates that Ansys Inc. has been managing its debt levels effectively in recent years. However, it is important to monitor future trends in this ratio to assess the company's long-term financial leverage and risk profile.