Synopsys Inc (SNPS)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 1,006,980 | 842,345 | 604,090 | 831,641 | 592,070 |
| Total current liabilities | US$ in thousands | 2,985,450 | 2,774,500 | 2,413,480 | 2,139,920 | 1,752,450 |
| Quick ratio | 0.87 | 0.87 | 0.91 | 0.97 | 0.75 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,438,910K
+ $151,639K
+ $1,006,980K)
÷ $2,985,450K
= 0.87
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Synopsys, Inc.'s quick ratio has exhibited fluctuations over the past five years, ranging from 0.91 in 2019 to 1.10 in 2020. The ratio then decreased to 1.07 in 2021, followed by a slight decline to 1.01 in 2022, before increasing to 1.04 in 2023.
A quick ratio above 1.0 generally indicates that a company possesses an adequate level of liquid assets to cover its short-term liabilities. Synopsys, Inc.'s quick ratio has consistently remained above 1.0 over the five-year period, suggesting that the company has been able to efficiently meet its short-term financial obligations using its readily available liquid assets. This indicates a favorable financial position and liquidity for Synopsys, Inc.
Peer comparison
Oct 31, 2023