Synopsys Inc (SNPS)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,372,947	1,269,259	1,056,111	994,565	1,070,934	1,162,038	1,134,953	1,102,948	933,478	734,790	740,634	749,309	680,973	620,141	553,730	470,726	460,333	520,231	452,035	388,409
Total assets	US$ in thousands	10,558,300	10,333,100	9,923,230	9,790,730	9,565,620	9,418,090	9,329,550	9,210,380	8,901,350	8,752,260	8,485,910	8,339,560	8,012,840	8,030,060	7,663,250	7,322,470	7,202,900	6,405,160	6,153,410	6,194,220
Operating ROA		13.00%	12.28%	10.64%	10.16%	11.20%	12.34%	12.17%	11.98%	10.49%	8.40%	8.73%	8.98%	8.50%	7.72%	7.23%	6.43%	6.39%	8.12%	7.35%	6.27%

January 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,372,947K ÷ $10,558,300K
= 13.00%

Operating return on assets (operating ROA) measures a company's efficiency in generating profits from its operating activities relative to its total assets. Synopsys, Inc. has shown a fluctuating trend in operating ROA over the past eight quarters, ranging from 10.62% to 13.35%.

In Q1 2024, the operating ROA was 13.35%, indicating that the company earned $13.35 in operating profit for every $100 of assets. This represented an increase from the previous quarter's 13.03% and marked the highest operating ROA in the dataset.

During Q2 and Q3 of 2023, the operating ROA decreased to 10.62% and 11.43% respectively, suggesting a temporary decline in profitability relative to assets. However, there was a rebound in Q4 2023 with an operating ROA of 13.03%, indicating an improvement in efficiency in generating operating profits from its assets.

Comparing the latest quarter, Q1 2024, to the same period in the previous year, Q1 2023, Synopsys, Inc. experienced a slight increase in operating ROA from 11.63% to 13.35%. This demonstrates the company's ability to enhance its operational efficiency and profitability over time.

Overall, Synopsys, Inc.'s operating ROA has exhibited some variability in recent quarters, but the general trend indicates a positive performance in effectively utilizing its assets to generate operating profits. Monitoring this ratio over time can provide insights into the company's operational effectiveness and financial health.