Synopsys Inc (SNPS)

Current ratio

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Total current assets	US$ in thousands	6,469,670	5,127,750	4,653,120	3,407,930	3,430,620	3,268,310	3,160,940	3,028,400	3,012,670	2,899,030	3,074,250	2,947,500	2,808,340	2,763,980	2,689,800	2,397,720	2,549,220	2,186,020	1,960,760	1,951,430
Total current liabilities	US$ in thousands	2,650,120	2,534,950	2,508,350	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
Current ratio		2.44	2.02	1.86	1.29	1.15	1.20	1.15	1.11	1.09	1.14	1.25	1.19	1.16	1.18	1.19	1.10	1.19	1.06	0.95	0.95

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 fluctuations over the past few years, indicating varying levels of short-term liquidity and ability to meet its current liabilities. As of October 31, 2024, the current ratio stood at 2.44, which signifies that the company has $2.44 in current assets for every $1 in current liabilities. This represents an improvement from the previous quarter when the current ratio was 2.02.

The upward trend in the current ratio suggests that Synopsys Inc has increased its liquidity position and strengthened its ability to cover short-term obligations. However, it is important to note that the current ratio was significantly lower in the previous year, indicating potential challenges in managing short-term liquidity at that time.

Overall, the current ratio of Synopsys Inc has shown positive movements and the current level of 2.44 indicates a healthy liquidity position. Nonetheless, it is crucial for the company to continue monitoring its current assets and liabilities to ensure a stable financial position in the short term.