Synopsys Inc (SNPS)

Quick 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
Cash	US$ in thousands	3,896,530	1,839,820	1,502,920	1,118,940	1,433,970	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
Short-term investments	US$ in thousands	153,869	154,431	156,780	154,490	151,639	148,443	150,846	147,050	147,913	147,599	146,901	147,748	147,949	144,773	—	—	0	—	—	—
Receivables	US$ in thousands	978,636	805,198	834,918	1,064,140	1,006,980	666,577	779,892	1,035,320	842,345	682,647	722,992	1,038,750	604,090	577,845	612,285	789,320	831,641	638,489	634,807	799,078
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
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

October 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,896,530K + $153,869K + $978,636K) ÷ $2,650,120K
= 1.90

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. A quick ratio of 1 or higher is generally considered healthy, indicating that a company has enough liquid assets to cover its current liabilities.

Analyzing Synopsys Inc's quick ratio over the past few quarters reveals fluctuations in its liquidity position. The quick ratio has ranged from a low of 0.73 to a high of 1.90 during the period under review. A quick ratio below 1 may suggest potential challenges in meeting short-term obligations without relying on selling inventory or raising additional funds.

It is notable that Synopsys Inc's quick ratio has shown some volatility, with occasional dips below 1 indicating potential liquidity concerns. However, the company has also demonstrated an ability to improve its quick ratio, as seen in the increase from 0.87 in Jan 2022 to 1.90 in Oct 2024.

Overall, investors and analysts may want to closely monitor Synopsys Inc's quick ratio and assess the company's ability to maintain sufficient liquid assets to cover its short-term liabilities in the future.