Synopsys Inc (SNPS)

Operating return on assets (Operating ROA)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Operating income	US$ in thousands	1,269,260	1,162,040	734,790	620,141	520,231
Total assets	US$ in thousands	10,333,100	9,418,090	8,752,260	8,030,060	6,405,160
Operating ROA		12.28%	12.34%	8.40%	7.72%	8.12%

October 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,269,260K ÷ $10,333,100K
= 12.28%

The operating return on assets (operating ROA) for Synopsys, Inc. has shown a generally positive trend over the past five years. The ratio has increased from 8.86% in 2019 to 13.03% in 2023, indicating an improvement in the company's ability to generate operating income from its assets. This suggests that Synopsys has been efficient in utilizing its assets to generate operating profits, which is a positive indicator of operational efficiency and profitability. The steady increase in operating ROA reflects positively on the company's management and strategy. However, it is important to analyze other financial metrics and external factors to assess the overall financial performance and sustainability of the company's profitability.