Synopsys Inc (SNPS)

Working capital 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
Total current assets	US$ in thousands	6,469,670	5,127,750	4,653,120	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
Total current liabilities	US$ in thousands	2,650,120	2,534,950	2,508,350	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
Working capital turnover		1.64	2.40	2.89	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	—	—

October 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,265,680K ÷ ($6,469,670K – $2,650,120K)
= 1.64

Synopsys Inc's working capital turnover has shown fluctuations over the past few years, ranging from 1.64 to 27.06. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

The working capital turnover for Synopsys Inc has generally been on an upward trend, reaching its peak at 27.06 in January 2020. This suggests that the company was able to generate $27.06 in revenue for every dollar of working capital invested during that period.

However, the ratio dropped significantly in subsequent periods, indicating a potential decrease in efficiency in managing working capital. It is important to note that a very high or very low working capital turnover ratio may also reflect specific industry characteristics or unique company operations.

Overall, while Synopsys Inc's working capital turnover ratio has fluctuated, it is essential for the company to closely monitor and manage its working capital to ensure efficient operations and sustainable growth in the future.