Synopsys Inc (SNPS)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,229,890 | 984,594 | 757,516 | 664,347 | 532,367 |
| Revenue | US$ in thousands | 5,842,620 | 5,081,540 | 4,204,190 | 3,685,280 | 3,360,690 |
| Net profit margin | 21.05% | 19.38% | 18.02% | 18.03% | 15.84% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,229,890K ÷ $5,842,620K
= 21.05%
The net profit margin of Synopsys, Inc. has shown a consistent improvement over the past five years, reaching 21.05% as of October 31, 2023, compared to 15.84% in October 31, 2019. This indicates that the company has become more efficient in converting its revenues into profits, demonstrating effective cost management and operational performance.
The steady increase in net profit margin signifies that Synopsys, Inc. has been able to control its expenses while generating higher levels of net income. This may be attributed to effective cost controls, economies of scale, improved product pricing, or a combination of these factors. It suggests that the company has been able to grow its bottom line without sacrificing profitability.
Overall, the upward trend in the net profit margin of Synopsys, Inc. indicates strong financial performance and effective management of the company's resources, which is a positive signal for investors and stakeholders.
Peer comparison
Oct 31, 2023