Synopsys Inc (SNPS)

Operating return on assets (Operating ROA)

Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Operating income (ttm) US$ in thousands 1,362,705 1,482,424 1,422,289 1,382,592 1,278,904 1,065,756 999,608 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
Total assets US$ in thousands 13,073,600 11,648,700 11,011,800 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
Operating ROA 10.42% 12.73% 12.92% 13.09% 12.38% 10.74% 10.21% 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%

October 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,362,705K ÷ $13,073,600K
= 10.42%

Operating return on assets (ROA) measures a company's ability to generate profits from its operational assets. Synopsys Inc's operating ROA has shown a positive trend over the past few quarters, indicating improved operational efficiency and effectiveness in utilizing its assets.

The operating ROA increased from 6.39% in January 2020 to 10.42% in October 2024, reflecting a consistent and steady improvement in profitability. This upward trend suggests that Synopsys has been able to generate more profit relative to its assets over time.

The company's operating ROA peaked at 13.09% in January 2024, indicating a particularly strong performance in that period. However, it experienced a slight dip in subsequent quarters but remained above 10% consistently.

Overall, the increasing trend in Synopsys Inc's operating ROA underscores its ability to efficiently convert its assets into operating profits, which is a positive indicator of the company's operational performance and financial health.


Peer comparison

Oct 31, 2024