ANSYS Inc (ANSS)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	526,044	517,933	501,889	480,270
Interest expense (ttm)	US$ in thousands	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	3,461	561	322	2,783
Interest coverage		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	151.99	923.23	1,558.66	172.57

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $639,283K ÷ $47,145K
= 13.56

Ansys Inc.'s interest coverage has exhibited a general declining trend over the past eight quarters, moving from a high of 54.61 in Q1 2022 to a low of 22.72 in Q4 2023. This indicates the company's ability to cover its interest expenses has weakened over time. However, it is important to note that the current interest coverage of 22.72 in Q4 2023 remains relatively healthy, suggesting that the company's earnings are still sufficient to cover its interest payments by a significant margin. Ansys Inc. should continue to monitor its interest coverage ratio to ensure it remains at a level that provides financial stability and meets the expectations of investors and creditors.