Synopsys Inc (SNPS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 79.33% | 79.08% | 78.79% | 78.51% | 78.91% | 79.07% | 79.48% | 80.05% | 79.78% | 79.50% | 79.11% | 78.93% | 78.81% | 78.44% | 78.56% | 78.04% | 77.69% | 77.60% | 76.98% | 76.50% |
| Operating profit margin | 22.40% | 21.72% | 19.11% | 18.81% | 20.70% | 22.87% | 22.93% | 23.18% | 20.72% | 17.48% | 18.17% | 18.81% | 17.82% | 16.83% | 15.77% | 13.85% | 13.64% | 15.48% | 13.68% | 12.02% |
| Pretax margin | 24.46% | 22.48% | 20.18% | 19.48% | 20.81% | 22.07% | 22.36% | 22.72% | 21.24% | 19.19% | 19.62% | 20.66% | 18.76% | 17.34% | 16.47% | 13.95% | 14.76% | 16.23% | 14.11% | 12.54% |
| Net profit margin | 22.96% | 21.05% | 18.71% | 17.41% | 18.22% | 19.38% | 20.86% | 21.19% | 20.18% | 18.02% | 18.48% | 20.27% | 18.91% | 18.03% | 17.88% | 13.96% | 14.31% | 15.84% | 18.94% | 18.74% |
The profitability ratios of Synopsys, Inc. have shown consistent performance over the quarters analyzed. The gross profit margin has remained relatively stable, ranging from 78.51% to 79.48% over the past eight quarters, indicating efficient cost management in generating revenue.
The operating profit margin reflects the company's ability to generate profits from its core operations, with values ranging from 19.66% to 24.13%. This ratio demonstrates the effectiveness of Synopsys in controlling operating expenses and maximizing operational efficiency.
The pretax margin, which indicates the company's profitability before taxes, has also been consistent, with values fluctuating between 19.27% and 24.27%. This ratio shows the company's ability to generate profits relative to its total revenue.
The net profit margin, a key measure of overall profitability, has ranged from 17.41% to 22.96%. This ratio reflects the company's ability to translate its revenue into bottom-line profit after accounting for all expenses.
Overall, Synopsys, Inc. has maintained strong profitability ratios, showcasing its ability to efficiently manage costs, maintain operational efficiency, and generate profits across its business operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.33% | 11.90% | 10.42% | 9.40% | 9.85% | 10.45% | 11.07% | 10.95% | 10.21% | 8.66% | 8.88% | 9.69% | 9.02% | 8.27% | 8.19% | 6.48% | 6.70% | 8.31% | 10.17% | 9.77% |
| Return on total capital | 22.45% | 21.32% | 18.68% | 17.63% | 19.05% | 20.29% | 19.72% | 19.40% | 17.74% | 15.23% | 15.51% | 16.16% | 14.69% | 12.86% | 12.41% | 10.96% | 11.86% | 13.26% | 11.85% | 10.47% |
| Return on equity (ROE) | 21.10% | 20.01% | 17.36% | 15.79% | 16.72% | 17.85% | 18.42% | 18.13% | 16.87% | 14.31% | 14.63% | 15.88% | 14.80% | 13.54% | 13.66% | 11.10% | 11.64% | 13.04% | 15.91% | 15.49% |
Synopsys, Inc. has demonstrated solid profitability ratios over the past eight quarters.
- Operating return on assets (Operating ROA) has shown a consistent upward trend, improving from 11.63% in Q1 2023 to 13.35% in Q1 2024. This indicates that the company is effectively generating operating income relative to its total assets.
- Return on assets (ROA) has also generally increased over the period, reflecting the firm's ability to generate profit from its assets. The ROA stood at 13.33% in Q1 2024 compared to 9.85% in Q1 2023.
- Return on total capital has been relatively stable, with some fluctuations, but generally showing an increasing trend. This ratio reached 21.07% in Q1 2024, signifying the efficient utilization of both equity and debt capital to generate profits.
- Return on equity (ROE) has exhibited a similar pattern to ROA, indicating an improvement in how effectively the company is using shareholder equity to generate profits. The ROE increased from 16.72% in Q1 2023 to 21.10% in Q1 2024.
Overall, Synopsys, Inc.'s profitability ratios suggest strong financial performance and efficient utilization of assets and capital, which is indicative of effective management and operational effectiveness.