Synopsys Inc (SNPS)

Current ratio

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Total current assets	US$ in thousands	6,469,670	3,430,620	3,012,670	2,808,340	2,549,220
Total current liabilities	US$ in thousands	2,650,120	2,985,450	2,774,500	2,413,480	2,139,920
Current ratio		2.44	1.15	1.09	1.16	1.19

October 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,469,670K ÷ $2,650,120K
= 2.44

The current ratio of Synopsys Inc has shown a positive trend over the past five years. As of October 31, 2024, the current ratio stands at 2.44, indicating a substantial improvement from the previous year's ratio of 1.15. This substantial increase suggests that the company's current assets are more than double its current liabilities, which reflects a strong liquidity position. The current ratio has been fluctuating in the past years, ranging from 1.09 to 2.44. While the ratios in 2022 and 2021 were relatively close to each other at 1.09 and 1.16, respectively, the significant increase in 2024 marks a noteworthy improvement in the company's ability to meet its short-term obligations. Overall, the current ratio trend indicates that Synopsys Inc has enhanced its liquidity position and is better equipped to manage its current liabilities effectively.