ANSYS Inc (ANSS)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 765,887 732,993 634,241 561,014 639,283 567,429 616,681 648,641 598,041 570,356 553,124 557,817 527,759 550,291 535,447 518,876 504,913 432,644 449,715 464,262
Interest expense (ttm) US$ in thousands 47,849 49,476 49,434 48,756 47,145 43,652 37,468 30,517 22,726 16,479 13,330 12,057 12,405 12,038 10,948 10,652 10,988 11,444 9,830 7,021
Interest coverage 16.01 14.82 12.83 11.51 13.56 13.00 16.46 21.26 26.32 34.61 41.49 46.26 42.54 45.71 48.91 48.71 45.95 37.81 45.75 66.12

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $765,887K ÷ $47,849K
= 16.01

The interest coverage ratio of ANSYS Inc has been fluctuating over the past few years, indicating varying levels of the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

The ratio peaked at 66.12 in March 2020, signaling a strong ability to cover interest payments. However, it gradually decreased to 16.01 by December 2024, suggesting a decline in the company's ability to meet its interest obligations from its operating income.

Overall, the downward trend in the interest coverage ratio may raise concerns about ANSYS Inc's financial health and ability to manage its debt obligations efficiently. Further analysis of the company's financial performance and leverage may be necessary to understand the underlying reasons for this trend.