Synopsys Inc (SNPS)

Operating return on assets (Operating ROA)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Operating income	US$ in thousands	1,355,710	1,273,240	1,162,040	734,790	620,141
Total assets	US$ in thousands	13,073,600	10,333,100	9,418,090	8,752,260	8,030,060
Operating ROA		10.37%	12.32%	12.34%	8.40%	7.72%

October 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,355,710K ÷ $13,073,600K
= 10.37%

Synopsys Inc's operating return on assets (operating ROA) has fluctuated over the past five years, ranging from 7.72% in 2020 to 12.34% in 2022. The 2023 and 2022 years depicted relatively strong performance with operating ROAs of 12.32% and 12.34% respectively, indicating efficient utilization of assets to generate operating income. However, in the subsequent years, operating ROA saw a slight decline to 10.37% in 2024, which might suggest either a lower operating income generated from assets or a higher level of assets deployed to generate the income. The trend in the operating ROA for Synopsys Inc over the period reflects variations in operational efficiency and profitability. Further analysis of the company's financial performance and operational strategies would be necessary to understand the underlying factors driving these changes in the operating ROA.