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