Synopsys Inc (SNPS)

Cash ratio

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Cash and cash equivalents	US$ in thousands	1,438,910	1,417,610	1,432,840	1,235,650	728,597
Short-term investments	US$ in thousands	151,639	147,913	147,949	0	—
Total current liabilities	US$ in thousands	2,985,450	2,774,500	2,413,480	2,139,920	1,752,450
Cash ratio		0.53	0.56	0.65	0.58	0.42

October 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,438,910K + $151,639K) ÷ $2,985,450K
= 0.53

The cash ratio of Synopsys, Inc. has remained relatively stable over the past five years, fluctuating within a narrow range between 0.60 and 0.83. This indicates that the company has maintained a consistent ability to meet its short-term liabilities with its available cash resources. A cash ratio above 1.0 is generally preferred, as it suggests the company has sufficient cash to cover its short-term obligations. Although Synopsys' cash ratio has not exceeded 1.0 in the given period, the relatively steady nature of this metric implies that the company has managed its liquidity effectively, ensuring its ability to meet financial obligations without relying heavily on short-term borrowing or other sources of funding.