Synopsys Inc (SNPS)
Solvency ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 |
| Financial leverage ratio | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 |
The solvency ratios of Synopsys, Inc. indicate a strong and stable financial position in terms of its ability to meet long-term obligations and manage debt. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained low, and in the most recent year (2023), they were reported as 0.00, suggesting that the company has no significant reliance on debt to finance its assets or operations. This implies a healthy balance between debt and assets, capital, and equity, which is favorable for long-term sustainability.
Additionally, the financial leverage ratio, which reflects the proportion of assets financed by debt versus equity, has exhibited a relatively stable trend over the years, with a slight decrease in 2023 compared to 2022. A lower financial leverage ratio indicates a lower reliance on debt for financing, and the consistency of this ratio further supports the company's solid solvency position.
Overall, based on these solvency ratios, Synopsys, Inc. appears to have a conservative and prudent approach to managing its long-term financial obligations, maintaining a strong solvency position over the years and suggesting a sound ability to weather economic downturns or challenging business environments.
Coverage ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1,116.06 | 661.58 | 240.72 | 125.33 | 47.79 |
The interest coverage ratio for Synopsys, Inc. was not available for the fiscal years ending October 31, 2023 and October 31, 2022. However, for the fiscal year ending October 31, 2021, the interest coverage ratio was 832.28, indicating a substantial ability to cover interest expenses from operating income. This reflects a strong ability to meet the company's interest obligations. Compared to the prior years, the interest coverage ratio has shown a significant improvement, as it was 415.58 in 2020 and 118.21 in 2019. This trend suggests that the company's ability to cover interest expenses has been strengthening over time.