ANSYS Operating Margin vs. Revenue

ANSS Stock  USD 344.14  4.44  1.31%   
Based on ANSYS's profitability indicators, ANSYS's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess ANSYS's ability to earn profits and add value for shareholders.

ANSYS Operating Profit Margin

0.25

At this time, ANSYS's Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 14.57 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.34 in 2024. At this time, ANSYS's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 621.7 M in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (32.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.950.8805
Significantly Up
Slightly volatile
Net Profit Margin0.180.2205
Significantly Down
Pretty Stable
Operating Profit Margin0.250.2758
Moderately Down
Pretty Stable
Pretax Profit Margin0.250.2609
Sufficiently Down
Very volatile
Return On Assets0.110.0683
Way Up
Slightly volatile
Return On Equity0.140.0928
Way Up
Slightly volatile
For ANSYS profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ANSYS to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ANSYS Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ANSYS's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ANSYS Inc over time as well as its relative position and ranking within its peers.
  

ANSYS's Revenue Breakdown by Earning Segment

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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ANSYS. If investors know ANSYS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ANSYS listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.284
Earnings Share
6.47
Revenue Per Share
28.309
Quarterly Revenue Growth
0.312
Return On Assets
0.0609
The market value of ANSYS Inc is measured differently than its book value, which is the value of ANSYS that is recorded on the company's balance sheet. Investors also form their own opinion of ANSYS's value that differs from its market value or its book value, called intrinsic value, which is ANSYS's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ANSYS's market value can be influenced by many factors that don't directly affect ANSYS's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ANSYS's value and its price as these two are different measures arrived at by different means. Investors typically determine if ANSYS is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ANSYS's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ANSYS Inc Revenue vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ANSYS's current stock value. Our valuation model uses many indicators to compare ANSYS value to that of its competitors to determine the firm's financial worth.
ANSYS Inc is rated second in operating margin category among its peers. It is rated below average in revenue category among its peers totaling about  8,457,336,066  of Revenue per Operating Margin. At this time, ANSYS's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value ANSYS by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

ANSYS Revenue vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

ANSYS

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.27 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

ANSYS

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
2.27 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

ANSYS Revenue vs Competition

ANSYS Inc is rated below average in revenue category among its peers. Market size based on revenue of Information Technology industry is presently estimated at about 95.7 Billion. ANSYS holds roughly 2.27 Billion in revenue claiming about 2.37% of equities under Information Technology industry.

ANSYS Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ANSYS, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ANSYS will eventually generate negative long term returns. The profitability progress is the general direction of ANSYS's change in net profit over the period of time. It can combine multiple indicators of ANSYS, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-90.3 M-85.8 M
Operating Income626.1 M657.4 M
Income Before Tax592.1 M621.7 M
Total Other Income Expense Net-34 M-32.3 M
Net Income500.4 M525.4 M
Income Tax Expense91.7 M55.8 M
Net Income Applicable To Common Shares602.3 M632.4 M
Net Income From Continuing Ops500.4 M361.3 M
Non Operating Income Net Other6.2 M6.1 M
Interest Income19.6 M20.6 M
Net Interest Income-27.6 M-26.2 M
Change To Netincome55.6 M45.3 M
Net Income Per Share 5.76  6.05 
Income Quality 1.43  2.05 
Net Income Per E B T 0.85  0.58 

ANSYS Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ANSYS. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ANSYS position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ANSYS's important profitability drivers and their relationship over time.

Use ANSYS in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ANSYS position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ANSYS will appreciate offsetting losses from the drop in the long position's value.

ANSYS Pair Trading

ANSYS Inc Pair Trading Analysis

The ability to find closely correlated positions to ANSYS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ANSYS when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ANSYS - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ANSYS Inc to buy it.
The correlation of ANSYS is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ANSYS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ANSYS Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ANSYS can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ANSYS position

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Additional Tools for ANSYS Stock Analysis

When running ANSYS's price analysis, check to measure ANSYS's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ANSYS is operating at the current time. Most of ANSYS's value examination focuses on studying past and present price action to predict the probability of ANSYS's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ANSYS's price. Additionally, you may evaluate how the addition of ANSYS to your portfolios can decrease your overall portfolio volatility.