ANSYS Inc (ANSS)

Debt-to-equity 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-equity ratio		0.14	0.15	0.17	0.19	0.12

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $753,891K ÷ $5,390,360K
= 0.14

The debt-to-equity ratio of Ansys Inc. has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt financing relative to equity. The ratio decreased from 0.19 in 2019 to 0.14 in 2023. This suggests that the company has been managing its debt levels effectively or increasing equity in its capital structure. A lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and potentially greater financial stability. Ansys Inc.'s decreasing trend in this ratio implies a strengthening financial position and prudent financial management. It is important to note that a low debt-to-equity ratio does not necessarily imply a lack of leverage, as the optimal capital structure varies by industry and company circumstances.