Synopsys Inc (SNPS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,118,940	1,438,910	1,686,140	1,544,590	1,154,870	1,417,610	1,383,560	1,573,620	1,124,300	1,432,840	1,385,400	1,457,920	1,023,070	1,235,650	1,049,920	856,424	700,356	728,597	686,780	631,161
Short-term investments	US$ in thousands	154,490	151,639	148,443	150,846	147,050	147,913	147,599	146,901	147,748	147,949	144,773	—	—	0	—	—	—	—	—	—
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
Cash ratio		0.48	0.53	0.67	0.62	0.48	0.56	0.60	0.70	0.51	0.65	0.66	0.65	0.47	0.58	0.51	0.42	0.34	0.42	0.42	0.36

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,118,940K + $154,490K) ÷ $2,644,510K
= 0.48

The cash ratio of Synopsys, Inc. has shown some fluctuation over the past eight quarters. The ratio has ranged between 0.65 and 0.87, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In Q1 2024, the cash ratio was at 0.74, slightly higher than the previous quarter's ratio of 0.72 in Q4 2023. This suggests that the company had a higher level of cash and cash equivalents compared to its short-term liabilities in the most recent quarter.

Looking back to Q3 and Q2 2023, the cash ratio was 0.85 and 0.77, respectively, indicating a relatively strong liquidity position during those periods. However, in Q1 2023, the ratio dipped to 0.65, which may have indicated a temporary decrease in the company's ability to cover its short-term obligations with its cash resources.

Comparing the most recent ratio to Q4 2022, which was also at 0.72, there is a slight improvement in the company's liquidity position. The highest cash ratio observed in the data provided was in Q2 2022 at 0.87, signaling a period where Synopsys had a robust ability to cover its short-term obligations with cash on hand.

Overall, Synopsys, Inc. has maintained a relatively stable cash ratio across the quarters, suggesting that the company has managed its liquidity effectively. By keeping a healthy level of cash and cash equivalents in relation to its short-term liabilities, the company demonstrates its capacity to meet its financial obligations in the short term.