Synopsys Inc (SNPS)

Return on equity (ROE)

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Net income	US$ in thousands	2,263,380	1,229,890	984,594	757,516	664,347
Total stockholders’ equity	US$ in thousands	8,990,700	6,147,310	5,515,720	5,295,140	4,907,400
ROE		25.17%	20.01%	17.85%	14.31%	13.54%

October 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,263,380K ÷ $8,990,700K
= 25.17%

Synopsys Inc's return on equity (ROE) has been showing a positive trend over the past five years, increasing from 13.54% in 2020 to 25.17% in 2024. This indicates that the company has been effectively utilizing shareholders' equity to generate profits.

The consistent growth in ROE reflects the company's ability to efficiently generate income from the equity invested by shareholders. It indicates that Synopsys Inc is becoming more profitable and efficient in managing its assets and liabilities to generate returns for its shareholders.

Overall, the increasing trend in ROE suggests that Synopsys Inc is performing well in terms of generating profits relative to shareholders' equity, which is a positive indicator of the company's financial health and management efficiency.