Synopsys Inc (SNPS)

Liquidity ratios

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
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
Quick ratio 1.90 1.10 0.99 0.88 0.87 0.92 0.90 0.86 0.87 0.87 0.99 0.93 0.91 0.90 0.92 0.83 0.97 0.82 0.73 0.73
Cash ratio 1.53 0.79 0.66 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

The liquidity ratios of Synopsys Inc have shown varying trends over the past several quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been increasing since the beginning of 2020. This indicates an improvement in the company's liquidity position in the short term.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown an overall increasing trend since the beginning of 2020. However, the quick ratio has been more volatile compared to the current ratio, reflecting fluctuations in the company's ability to quickly meet its short-term obligations without relying on inventory.

The cash ratio, which indicates the company's ability to cover its current liabilities with its cash and cash equivalents only, has generally shown an increasing trend since the beginning of 2020, with some fluctuations along the way. This suggests that Synopsys Inc has been strengthening its ability to meet its short-term obligations using its available cash reserves.

Overall, the liquidity ratios of Synopsys Inc demonstrate an improving liquidity position in the short term, as indicated by the increasing current ratio, quick ratio, and cash ratio over the past few quarters. This suggests that the company has been managing its short-term liquidity effectively, which is crucial for financial stability and operational resilience.

See also:

Synopsys Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 100.55 136.78 134.50 158.78 118.36 117.38 111.62 123.45 120.33 103.43 108.90 157.80 137.84 137.36 136.93 168.03 156.93 125.86 124.23 145.32

The cash conversion cycle of Synopsys Inc has shown some fluctuations over the past years. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, ranged from 100.55 days to 168.03 days during the period under review.

A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its investments into cash quickly. Conversely, a higher cash conversion cycle may indicate inefficiencies in managing inventory, accounts receivable, or accounts payable.

Synopsys Inc experienced its lowest cash conversion cycle of 100.55 days in October 2024 and its highest cycle of 168.03 days in January 2021. It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and improve overall financial performance.