Synopsys Inc (SNPS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	2,263,384	1,498,464	1,426,661	1,407,464	1,229,888	1,034,198	920,572	942,443	984,594	1,032,541	1,008,561	908,858	757,516	753,524	807,789	722,631	664,347	627,606	474,624	482,914
Total stockholders’ equity	US$ in thousands	8,990,700	7,709,400	7,153,160	6,670,980	6,147,310	5,958,560	5,831,860	5,636,750	5,515,720	5,604,030	5,564,310	5,386,770	5,295,140	5,151,020	5,088,140	4,882,250	4,907,400	4,595,920	4,275,090	4,148,830
ROE		25.17%	19.44%	19.94%	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%

October 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,263,384K ÷ $8,990,700K
= 25.17%

The return on equity (ROE) of Synopsys Inc has exhibited some fluctuations over the past few years. The ROE has ranged from a low of 11.10% in January 2020 to a high of 25.17% in October 2024. Overall, the trend shows a general improvement in ROE over the period.

Starting from 2020, the ROE has shown a consistent upward trajectory, indicating an improvement in the company's ability to generate profits from shareholders' equity. This upward trend suggests that Synopsys Inc has been effectively utilizing its equity to generate returns for its shareholders.

While there have been fluctuations in the ROE figures, with some quarters performing better than others, the general trend points towards an increase in profitability and efficiency in utilizing shareholders' equity. This indicates that the company is effectively managing its resources and generating returns for its shareholders.

Overall, the increasing trend in ROE for Synopsys Inc is a positive indicator of the company's financial health and performance, as it reflects the ability of the company to generate higher returns on the equity invested by its shareholders.