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Here's How Ansys Is Making So Much for You

http://www.fool.com/investing/general/2011/03/21/heres-how-ansys-is-making-so-much-for-you.aspx

Seth Jayson
March 21, 2011

Margins matter. The more Ansys (Nasdaq: ANSS  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market.  That's why I check on my holdings' margins at least once a quarter. I'm looking for the absolute numbers, comparisons to sector peers and competitors, and any trend that may tell me how strong Ansys's competitive position could be.

Here's the current margin snapshot for Ansys and some of its sector and industry peers and direct competitors.

Company

TTM Gross Margin

TTM Operating Margin

TTM Net Margin

 Ansys

88.3%

37.9%

26.4%

 Cadence Design Systems (Nasdaq: CDNS  )

83.3%

(0.3%)

13.5%

 Autodesk (Nasdaq: ADSK  )

89.9%

14.5%

10.9%

 Parametric Technology (Nasdaq: PMTC  )

69.1%

6.8%

1.9%

Source: Capital IQ