Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', ANSS's return on equity was 10.1%, measuring profitability for shareholders. Industry average for Computer Software: Prepackaged Software in '2021' stood at 1.5%.
• In '2022', ANSS's return on equity was 11.2%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2022' stood at -31.2%. Industry average declined by 32.7% from previous year.
• In '2023', ANSS's return on equity was 9.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2023' stood at -23.0%. Industry average increased by 8.3% compared to previous year.
• In '2024', ANSS's return on equity was 10.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2024' stood at -20.3%. Industry average increased by 2.7% compared to previous year.
Overall, ANSS's return on equity has remained generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.