Synopsys Inc (SNPS)

Fixed asset turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Revenue (ttm)	US$ in thousands	6,265,680	6,228,820	6,190,360	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
Property, plant and equipment	US$ in thousands	563,006	571,408	566,832	567,038	549,837	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
Fixed asset turnover		11.13	10.90	10.92	10.81	10.63	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

October 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,265,680K ÷ $563,006K
= 11.13

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets. A higher fixed asset turnover indicates that the company is more efficient in utilizing its fixed assets to generate revenue.

Analyzing Synopsys Inc's fixed asset turnover over the past years, we can see a generally increasing trend from 7.23 in January 2020 to 11.13 in October 2024. This indicates an improvement in the company's efficiency in generating sales from its fixed assets over the years.

The company's fixed asset turnover peaked at 11.13 in October 2024, which suggests that Synopsys Inc was able to generate $11.13 in sales for every dollar invested in fixed assets during that period. This high ratio reflects the company's effective utilization of its fixed assets to drive revenue.

Overall, the increasing trend in Synopsys Inc's fixed asset turnover demonstrates the company's improving efficiency in managing its fixed assets to generate sales. However, it is essential to consider other factors and industry benchmarks to gain a comprehensive understanding of the company's financial performance.