Synopsys Inc (SNPS)

Return on assets (ROA)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income	US$ in thousands	1,229,890	984,594	757,516	664,347	532,367
Total assets	US$ in thousands	10,333,100	9,418,090	8,752,260	8,030,060	6,405,160
ROA		11.90%	10.45%	8.66%	8.27%	8.31%

October 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,229,890K ÷ $10,333,100K
= 11.90%

Synopsys, Inc.'s return on assets (ROA) has exhibited a positive trend over the past five years. The ROA increased from 8.31% in 2019 to 11.90% in 2023, indicating that the company has been more effective in generating profits from its assets. This improvement suggests that Synopsys has been utilizing its assets more efficiently to generate earnings.

The ROA performance in 2023 is particularly noteworthy, as it represents a significant increase from the previous year's 10.45%. This improvement indicates that the company has managed to further optimize its asset utilization, potentially through better operational efficiency or strategic management of its asset base.

Overall, the consistent increase in ROA over the analyzed period reflects positively on Synopsys, Inc.'s ability to generate earnings relative to its asset base. This trend suggests that the company has been effectively managing its assets to drive profitability, which may bode well for its financial performance and overall value creation.