Balance sheet analysis
ANSYS ‘s total assets were $7.3 billion and $6.7 billion in 2023 and 2022, respectively.
Goodwill was $3.8 billion in 2023, accounting for 52% of total assets.
This show that the company completed a lot of acquisitions in the past and acquiring is main force for driving business growth.
Total current assets were $2 billion and total current liabilities were $889 million in 2023.
The current ratio was 2.25 for 2023.
Total liabilities were $1.9 billion, which is equivalent to total current assets.
There is no problem with company’s solvency.
Profitability analysis
Total revenue was $2.27 billion, $2.07 billion and $1.9 billion in 2023, 2022 and 2021, respectively.
Total revenue in 2023 was up 9.7% year-on-year.
Total revenue in 2022 was up 9% year-on-year.
Net income was $500 million, $524 million and $455 million in 2023, 2022 and 2021, respectively.
ANSYS’ s net profit margin was 22%, 25.3% and 24% for 2023, 2022 and 2021, respectively.
The company’s net profit margin is very high, but we need to look at ROE.
The return on equity was 9.3% and 10.7% in 2023 and 2022.
The return on equity was mediocre.
Cash flow analysis
Net cash provided by operating activities was $717 million, $631 million and $550 million in 2023, 2022 and 2021, respectively.
The amount of net cash provided by operating activities has been more than that of net income over the past three years.
Net cash used in investing activities was $240 million, $411 million and $537 million in 2023, 2022 and 2021, respectively.
Purchase of treasury stock was $196.5 million, $205.6 million and $134.7 million in 2023, 2022 and 2021, respectively.
Conclusion
The company’s business growth largely depends on acquiring activities.
The return on equity was mediocre.
we should considering some factors , including stock-based compensation, acquisitions, capital expenditures, other investing activities, which cause valuation in decline.
ANSYS‘s stock price is $341.87 per share, which is equivalent to $29.75 billion in market cap.
We reckon that $4 billion in market capitalization is profitable.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
ANSYS, Inc., a corporation formed in 1994, develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including high-tech, aerospace and defense, automotive, energy, industrial equipment, materials and chemicals, consumer products, healthcare and construction.
