GURUFOCUS.COM » STOCK LIST » USA » NAS » Ansys Inc (NAS:ANSS) » Definitions » Financial Strength
Switch to:

Ansys Financial Strength

: 8 (As of Jun. 2022)
View and export this data going back to 1996. Start your Free Trial

Ansys has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Ansys Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Ansys's Interest Coverage for the quarter that ended in Jun. 2022 was 27.77. Ansys's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.46. As of today, Ansys's Altman Z-Score is 10.55.


Competitive Comparison

For the Software - Application subindustry, Ansys's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Software industry and Technology sector, Ansys's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ansys's Financial Strength falls into.



Ansys Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Ansys's Interest Expense for the months ended in Jun. 2022 was $-5 Mil. Its Operating Income for the months ended in Jun. 2022 was $128 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $865 Mil.

Ansys's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*128.01/-4.609
=27.77

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Ansys's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 864.759) / 1895.4
=0.46

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Ansys has a Z-score of 10.55, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.55 is strong.

* 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.


Ansys  (NAS:ANSS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Ansys has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Ansys Financial Strength Related Terms

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


Ansys Business Description

Ansys logo
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, including those in aerospace defense and automotive.
Executives
Chakravarthy Anil director C/O INFORMATICA CORPORATION 2100 SEAPORT BOULEVARD REDWOOD CITY CA 94063
Frankola Jim director C/O CLOUDERA INC 1001 PAGE MILL ROAD, BLDG. 3 PALO ALTO CA 94089
Calderoni Robert director 851 WEST CYPRESS CREEK ROAD FORT LAUDERDALE FL 33309
Vijayaraghavan Ravi K director 2600 ANSYS DRIVE CANONSBURG PA 15317
Banerjee Prithviraj officer: Chief Technology Officer C/O CRAY INC. 901 FIFTH AVENUE, SUITE 1000 SEATTLE WA 98164
Dorchak Glenda director C/O MELLANOX TECHNOLOGIES, INC. 350 OAKMEAD PARKWAY, SUITE 100 SUNNYVALE CA 94085
Anasenes Nicole director 2600 ANSYS DRIVE CANONSBURG PA 15317
Gallimore Alec D. director 2600 ANSYS DRIVE CANONSBURG PA 15317
Lee Janet officer: VP, General Counsel 2600 ANSYS DRIVE CANONSBURG PA 15317
Zack Matthew C. officer: VP, Marketing/Corp Development 2600 ANSYS DRIVE CANONSBURG PA 15317
Mahoney Richard S. officer: VP, WORLDWIDE SALES & SUPPORT 2600 ANSYS DRIVE CANONSBURG PA 15317
Esquivel Fernando officer: VP - HUMAN RESOURCES 2600 ANSYS DRIVE CANONSBURG PA 15317
Dubois Guy director C/O GUIDEWIRE SOFTWARE INC 1001 E HILLSDALE BLVD SUITE 800 FOSTER CITY CA 94404
Hindsbo Mark officer: Vice President, Marketing 2600 ANSYS DR. CANONSBURG PA 15317
Kocis Robert Andrew officer: VP, WORLDWIDE SALES & SUPPORT 275 TECHNOLOGY DR CANONSBURG PA 15317

Ansys Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)