Ansys Profitability Analysis

ANSS
 Stock
  

USD 280.46  0.47  0.17%   

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. Please continue to Trending Equities.
  
As of 08/18/2022, Return on Sales is likely to grow to 0.30, while Price to Sales Ratio is likely to drop 16.05. As of 08/18/2022, Income Tax Expense is likely to grow to about 68.7 M, while Accumulated Other Comprehensive Income is likely to drop (57.6 M).

Ansys Revenues

1.67 Billion

Is Ansys' industry 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 YOY
0.066
Market Capitalization
24.7 B
Quarterly Revenue Growth YOY
0.061
Return On Assets
0.0585
Return On Equity
0.11
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' value that differs from its market value or its book value, called intrinsic value, which is Ansys' 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' market value can be influenced by many factors that don't directly affect Ansys' 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' value and its price as these two are different measures arrived at by different means. Investors typically determine Ansys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ansys' 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 Operating Margin vs. Return On Equity 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 number one stock in return on equity category among related companies. It is number one stock in operating margin category among related companies reporting about  3.20  of Operating Margin per Return On Equity. Ansys Operating Margin is relatively stable at the moment as compared to the past year. Ansys reported last year Operating Margin of 26.92. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ansys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ansys' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ansys' earnings, one of the primary drivers of an investment's value.

Ansys Operating Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Ansys 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
10.53 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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 
33.69 %
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.

Ansys Operating Margin Comparison

Ansys is currently under evaluation in operating margin category among related companies.

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' 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 2022
Accumulated Other Comprehensive Income-56.1 M-57.6 M
Consolidated Income454.6 M419.3 M
Net Income454.6 M419.3 M
Net Income Common Stock454.6 M419.3 M
Operating Income513.3 M499.1 M
Income Tax Expense60.7 M68.7 M
Net Income Per Employee89.1 K86.9 K
ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania. Ansys operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 5300 people.

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' important profitability drivers and their relationship over time.

Ansys Profitability Trends

Ansys profitability trend refers to the progression of profit or loss within a business. An upward trend means that Ansys' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Ansys' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Ansys Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Ansys different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Ansys in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Ansys' future profitability.

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 equities. 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

In addition to having Ansys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Services
Services Theme
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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Please continue to Trending Equities. Note that the Ansys Inc information on this page should be used as a complementary analysis to other Ansys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running Ansys Inc price analysis, check to measure Ansys' 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' value examination focuses on studying past and present price action to predict the probability of Ansys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ansys' price. Additionally, you may evaluate how the addition of Ansys to your portfolios can decrease your overall portfolio volatility.
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To fully project Ansys' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ansys Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ansys' income statement, its balance sheet, and the statement of cash flows.
Potential Ansys investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ansys investors may work on each financial statement separately, they are all related. The changes in Ansys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ansys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.