Synopsys Inc (SNPS)
Fixed asset turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,130,510 | 5,842,620 | 5,527,780 | 5,288,260 | 5,172,630 | 5,081,550 | 4,949,680 | 4,759,040 | 4,504,130 | 4,204,191 | 4,077,211 | 3,984,215 | 3,821,222 | 3,685,282 | 3,510,923 | 3,399,759 | 3,374,674 | 3,360,694 | 3,304,695 | 3,231,439 |
| Property, plant and equipment | US$ in thousands | 567,038 | 557,261 | 535,973 | 546,439 | 516,925 | 483,300 | 486,872 | 491,641 | 477,521 | 472,398 | 470,129 | 478,975 | 486,604 | 483,818 | 484,529 | 470,412 | 457,527 | 429,532 | 372,566 | 344,176 |
| Fixed asset turnover | 10.81 | 10.48 | 10.31 | 9.68 | 10.01 | 10.51 | 10.17 | 9.68 | 9.43 | 8.90 | 8.67 | 8.32 | 7.85 | 7.62 | 7.25 | 7.23 | 7.38 | 7.82 | 8.87 | 9.39 |
January 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,130,510K ÷ $567,038K
= 10.81
Fixed asset turnover measures how efficiently a company generates revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate better utilization of fixed assets to generate sales. Synopsys, Inc. has maintained a relatively consistent fixed asset turnover ratio over the past quarters, ranging from 9.68 to 10.81.
The company's fixed asset turnover ratio peaked in Q1 2024 at 10.81, suggesting that for every dollar invested in fixed assets, the company generated $10.81 in revenue. This indicates a strong ability to utilize its fixed assets effectively to generate sales.
Although the fixed asset turnover ratio dipped to 9.68 in Q2 2023 and Q2 2022, it rebounded in subsequent quarters, indicating that the company efficiently managed its fixed assets to drive revenue growth.
Overall, Synopsys, Inc.'s consistent and relatively high fixed asset turnover ratios demonstrate efficient management of its fixed assets to generate revenue, reflecting positively on the company's operational efficiency and profitability.
Peer comparison
Jan 31, 2024