Synopsys Inc (SNPS)
Gross profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,620,430 | 4,017,840 | 3,342,420 | 2,890,590 | 2,607,750 |
| Revenue | US$ in thousands | 5,842,620 | 5,081,540 | 4,204,190 | 3,685,280 | 3,360,690 |
| Gross profit margin | 79.08% | 79.07% | 79.50% | 78.44% | 77.60% |
October 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,620,430K ÷ $5,842,620K
= 79.08%
Synopsys, Inc.'s gross profit margin has shown a relatively stable trend over the past five years, ranging from 77.60% in 2019 to 79.50% in 2021. The gross profit margin for the most recent year, ending October 31, 2023, stood at 79.08%, indicating a very slight decrease from the previous year.
A high and consistent gross profit margin is generally a positive indicator of a company's ability to maintain a healthy level of profitability from its core operations. It suggests that Synopsys, Inc. has been effectively controlling its direct costs related to the production of goods and services.
However, it's important to note that while the overall trend is stable, there has been a slight decline in gross profit margin in the most recent year. This may warrant further investigation to understand the factors contributing to this change.
Overall, based on the historical data, the gross profit margin of Synopsys, Inc. appears to be strong, but ongoing monitoring and analysis will be important to ensure that any fluctuations are well understood and managed.
Peer comparison
Oct 31, 2023