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Ansys (ANSS) Degree of Operating Leverage : 2.52 (As of Mar. 2025)


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What is Ansys Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ansys's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Ansys's Degree of Operating Leverage or its related term are showing as below:

ANSS's Degree of Operating Leverage is ranked worse than
70.82% of 2659 companies
in the Software industry
Industry Median: 0.79 vs ANSS: 2.52

Ansys Degree of Operating Leverage Historical Data

The historical data trend for Ansys's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ansys Degree of Operating Leverage Chart

Ansys Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.37 0.34 1.60 0.70 1.64

Ansys Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.76 0.41 2.04 1.64 2.52

Competitive Comparison of Ansys's Degree of Operating Leverage

For the Software - Application subindustry, Ansys's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ansys's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Ansys's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Ansys's Degree of Operating Leverage falls into.


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Ansys Degree of Operating Leverage Calculation

Ansys's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 787.266 (Mar. 2025) / 561.014 (Mar. 2024) - 1 )/( 2583.095 (Mar. 2025) / 2227.107 (Mar. 2024) - 1 )
=0.4033/0.1598
=2.52***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Ansys  (NAS:ANSS) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Ansys Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Ansys's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Ansys Business Description

Industry
Traded in Other Exchanges
Address
2600 ANSYS Drive, Canonsburg, PA, USA, 15317
Ansys is an engineering software company that provides simulation capabilities for structural, fluids, semiconductor power, embedded software, optical, and electromagnetic properties. Ansys employs over 4,000 people and serves over 50,000 customers globally.
Executives
Glenda Dorchak director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Ajei Gopal director CA, INC., ONE CA PLAZA, ISLANDIA NY 11749
Janet Lee officer: VP, General Counsel 2600 ANSYS DRIVE, CANONSBURG PA 15317
Barbara Vaughn Scherer director 337 ENCINAL ST, SANTA CRUZ CA 95060
Shane Emswiler officer: VP and General Manager 225 WEST STATION SQUARE DRIVE, STE 200, PITTSBURGH PA 15219
Walter Hearn officer: SVP, World Sales & Cust. Exc. 2600 ANSYS DRIVE, CANONSBURG PA 15317
Claire Bramley director HP, 1501 PAGE MILL ROAD, PALO ALTO CA 94304
Richard S. Mahoney officer: VP, WORLDWIDE SALES & SUPPORT 2600 ANSYS DRIVE, CANONSBURG PA 15317
Maria T Shields officer: CFO 2600 ANSYS DRIVE, CANONSBURG PA 15317
Anil Chakravarthy director C/O INFORMATICA CORPORATION, 2100 SEAPORT BOULEVARD, REDWOOD CITY CA 94063
Alec D. Gallimore director 2600 ANSYS DRIVE, CANONSBURG PA 15317
Jim Frankola director C/O CLOUDERA INC, 1001 PAGE MILL ROAD, BLDG. 3, PALO ALTO CA 94089
Matthew C. Zack officer: VP, Marketing/Corp Development 2600 ANSYS DRIVE, CANONSBURG PA 15317
Nicole Anasenes director 2600 ANSYS DRIVE, CANONSBURG PA 15317
Robert Calderoni director 851 WEST CYPRESS CREEK ROAD, FORT LAUDERDALE FL 33309