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Financial Statement Analysis of MSC Software Corp.
Candice BrownNicole Caselli
Aaron CastanedaLavanya Sankaran
MSC Software Corp. Founded in 1963 by Dr. Richard MacNeal and Mr. Robert
Schwendler Headquartered in Santa Ana, California Employs more than 1,200 people in 23 countries The leading global provider of integrated enterprise simulation
solutions Products of MSC:
SimManager MD Solutions SimOffice FlightLoads AFEA Fatigue
SimXpert SimDesigner FEA TFEA MVision Sofy
Ansys Inc. Founded in 1970 Headquartered in Canonsburg, Pennsylvania Approximately 1,700 employees, many of whom are engineers
with advanced degrees and extensive training. Develops, markets, and supports engineering simulation
software used to predict how product designs will operate and how manufacturing processes will behave in real-world environments.
Parametric Technology Corp. (PTC) Founded in 1985 Headquartered in Boston, Massachusetts Design engineering software Among the largest independent software companies in the
world Develops, markets and supports software solutions that help
customers improve the competitiveness of their products and product development processes.
Started acquiring different design companies in 2004 and have acquired 10 since then.
Debt/Equity Ratio
2006: 47.60% 2007: 46.00% 2008: 43.00%
0%
50%
100%
150%
2006 2007 2008
MSC Ansys PTC
Return on Assets (ROA)
2006: 3.50%
2007: -0.20%
2008: 3.60%-2%
0%
2%
4%
6%
8%
2006 2007 2008
MSC Ansys PTC
Return on Equity (ROE)
2006: 4.40%
2007: -0.50%
2008: -6.80%-10%
0%
10%
20%
30%
2006 2007 2008
MSC Ansys PTC
PE Ratio
*2006: 43.03% *2007: -299.50 *2008: -14.38%
-300
-200
-100
0
100
200
2006 2007 2008
MSC Ansys PTC
Conclusion Individual numbers are inconclusive Trends show improvement Comparison with competitors shows a fiscal advantage Overall, MSC Software is a successful company in the software
industry. Acquisitions resulted in significant losses however, in the long
run the ratios indicate profitability is increasing. For investors, this is a prime time to buy shares of MSC stock.