Synopsys Inc (SNPS)

Debt-to-assets ratio

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Long-term debt	US$ in thousands	18,078	20,824	25,094	100,823	120,093
Total assets	US$ in thousands	10,333,100	9,418,090	8,752,260	8,030,060	6,405,160
Debt-to-assets ratio		0.00	0.00	0.00	0.01	0.02

October 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $18,078K ÷ $10,333,100K
= 0.00

Synopsys, Inc.'s debt-to-assets ratio has remained consistently low over the past five years, indicating a strong financial position and efficient asset management. The ratio measures the proportion of the company's assets financed by debt, and a lower ratio generally indicates lower financial risk and greater financial stability.

The company's debt-to-assets ratio has been at 0.00 for the most recent two years, suggesting that Synopsys, Inc. has not relied on debt to finance its assets during this period. This indicates a conservative approach to capital structure, as the company may be relying more on equity financing or internally generated funds to support its asset base.

Looking back two years prior to that, in October 2021, the debt-to-assets ratio was 0.01, indicating that only 1% of the company's total assets were financed by debt. This further supports the stability and strength of the company's financial position, as it shows a low reliance on borrowing to support its operations and investments.

Even in the previous years, the debt-to-assets ratio remained at 0.02, reinforcing the consistent conservative financial approach of the company.

Overall, the trend of Synopsys, Inc.'s debt-to-assets ratio reflects a prudent and cautious management of the company's capital structure, with a minimal reliance on debt financing in favor of a more stable and sustainable financial foundation. This supports the company's ability to weather economic downturns and pursue strategic initiatives from a position of financial strength.