ANSYS Inc (ANSS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,322,880 | 6,687,940 | 6,324,310 | 5,940,590 | 4,838,890 |
| Total stockholders’ equity | US$ in thousands | 5,390,360 | 4,865,850 | 4,484,050 | 4,097,870 | 3,453,380 |
| Financial leverage ratio | 1.36 | 1.37 | 1.41 | 1.45 | 1.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,322,880K ÷ $5,390,360K
= 1.36
Ansys Inc.'s financial leverage ratio has shown a fluctuating trend over the past five years, with values ranging from 1.36 to 1.45. The ratio indicates that the company has been financing its operations with a mix of debt and equity. A financial leverage ratio above 1 suggests that the company relies more on debt to finance its assets than on equity.
The decreasing trend from 1.41 in 2021 to 1.36 in 2023 indicates a relative decrease in the company's reliance on debt financing compared to equity, which could be a positive sign for investors and creditors. However, caution should be exercised as the ratio remains above 1, indicating that Ansys Inc. still has a significant level of financial leverage.
Overall, Ansys Inc.'s financial leverage ratio suggests that the company has been managing its debt levels effectively, but continued monitoring is advised to ensure the company maintains a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023