Synopsys Inc (SNPS)

Cash ratio

Oct 31, 2024 Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020
Cash and cash equivalents US$ in thousands 3,896,530 1,433,970 1,417,610 1,432,840 1,235,650
Short-term investments US$ in thousands 153,869 151,639 147,913 147,949 0
Total current liabilities US$ in thousands 2,650,120 2,985,450 2,774,500 2,413,480 2,139,920
Cash ratio 1.53 0.53 0.56 0.65 0.58

October 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,896,530K + $153,869K) ÷ $2,650,120K
= 1.53

The cash ratio of Synopsys Inc has shown a fluctuating trend over the past five years, ranging from 0.53 to 1.53. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The cash ratio of 1.53 in October 2024 signifies that Synopsys Inc had $1.53 in cash and cash equivalents for every dollar of current liabilities, indicating a strong liquidity position to meet its short-term obligations. This is a significant improvement from the previous year, where the cash ratio was only 0.53.

In contrast, the cash ratio was relatively stable around 0.56 to 0.65 from October 2022 to October 2021, indicating that the company had less cash on hand to cover its short-term liabilities during those periods.

Overall, the increasing trend in the cash ratio from 2021 to 2024 suggests that Synopsys Inc has improved its liquidity position and ability to meet its short-term financial obligations with cash resources.


Peer comparison

Oct 31, 2024


See also:

Synopsys Inc Cash Ratio