Synopsys Inc (SNPS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,147,310	5,515,720	5,295,140	4,907,400	4,083,010
ROE		20.01%	17.85%	14.31%	13.54%	13.04%

October 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,229,890K ÷ $6,147,310K
= 20.01%

Sure! The return on equity (ROE) measures a company's profitability by showing how much profit it generates with the money shareholders have invested. A higher ROE suggests that a company is using shareholders' equity more efficiently to generate profit.

Based on the data provided, Synopsys, Inc.'s ROE has been steadily increasing over the past five years. In 2019, the ROE was 13.04%, and it has shown a positive trend, reaching 20.01% in 2023. This indicates that the company has been effectively using shareholder equity to generate profits.

The consistent rise in ROE reflects positively on Synopsys, Inc.'s ability to generate strong returns on the capital invested by shareholders. This trend suggests that the company's management is effectively utilizing the equity capital to grow profits and increase shareholder value.

Overall, the increasing trend in Synopsys, Inc.'s ROE over the past five years indicates strong financial performance and efficient use of shareholder equity, which may attract investors and signal a healthy and growing business.