Synopsys Inc (SNPS)

Working capital 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
Total current assets	US$ in thousands	3,407,930	3,430,620	3,268,310	3,160,940	3,028,400	3,012,670	2,899,030	3,074,250	2,947,500	2,808,340	2,763,980	2,689,800	2,397,720	2,549,220	2,186,020	1,960,760	1,951,430	1,738,920	1,617,640	1,643,880
Total current liabilities	US$ in thousands	2,644,510	2,985,450	2,729,980	2,748,680	2,725,000	2,774,500	2,545,860	2,462,660	2,471,660	2,413,480	2,334,640	2,255,700	2,171,380	2,139,920	2,056,280	2,054,200	2,055,740	1,752,450	1,630,450	1,732,930
Working capital turnover		8.03	13.12	10.27	12.83	17.05	21.34	14.02	7.78	9.47	10.65	9.50	9.18	16.88	9.00	27.06	—	—	—	—	—

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,130,510K ÷ ($3,407,930K – $2,644,510K)
= 8.03

Working capital turnover is an efficiency ratio that measures how effectively a company is utilizing its working capital to generate revenue. A higher working capital turnover indicates that the company is efficient in managing its working capital to generate sales.

Analyzing the data provided for Synopsys, Inc., we observe fluctuations in the working capital turnover ratio over the past 8 quarters. In Q1 2024, the working capital turnover ratio was 8.03, which decreased from Q4 2023 where it was 13.12. This decline may indicate a decrease in the company's efficiency in utilizing its working capital to generate revenue during Q1 2024 compared to the previous quarter.

Looking at the trend over the past quarters, we see variability in the ratio, with the highest ratio recorded in Q4 2022 at 21.34 and the lowest ratio in Q1 2024 at 8.03. This variability suggests that Synopsys, Inc. has experienced fluctuations in its working capital efficiency over the past 8 quarters.

Overall, for a more comprehensive analysis, it would be important to consider the company's industry norms and compare the working capital turnover ratio with its competitors to assess Synopsys, Inc.'s performance in managing its working capital efficiently.