Synopsys Inc (SNPS)

Quick ratio

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cash	US$ in thousands	1,118,940	1,438,910	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	728,597	686,780	631,161
Short-term investments	US$ in thousands	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	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	592,070	457,390	526,691
Total current liabilities	US$ in thousands	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	1,752,450	1,630,450	1,732,930
Quick ratio		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	0.75	0.70	0.67

January 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,118,940K + $154,490K + $1,064,140K) ÷ $2,644,510K
= 0.88

The quick ratio of Synopsys, Inc. has shown some fluctuations over the past quarters, ranging from a low of 1.01 in Q4 2022 to a high of 1.16 in Q2 2022. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.

In Q1 2024, the quick ratio improved to 1.14 compared to the previous quarter, indicating that the company's liquidity position strengthened. This may suggest that Synopsys, Inc. has increased its ability to meet its short-term obligations without relying heavily on inventory.

Overall, the trend in the quick ratio for Synopsys, Inc. has been relatively stable and within a healthy range above 1, indicating that the company is likely to be able to meet its upcoming financial obligations in the short term. It is important for stakeholders to monitor this ratio regularly to assess the company's liquidity position and its ability to manage short-term financial challenges.