Synopsys Inc (SNPS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	6,147,310	5,515,720	5,295,140	4,907,400	4,083,010
Debt-to-capital ratio		0.00	0.00	0.00	0.02	0.03

October 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $18,078K ÷ ($18,078K + $6,147,310K)
= 0.00

The debt-to-capital ratio of Synopsys, Inc. has exhibited consistent stability over the past five years. As of October 31, 2023, and 2022, the company reported a debt-to-capital ratio of 0.00, indicating that it had no debt in relation to its capital during these periods.

In the preceding years, the company's debt-to-capital ratio was 0.02 in 2021 and 0.03 in 2020 and 2019, demonstrating a slight increase in leverage. This suggests that in the earlier years, a small portion of the company's capital was financed through debt.

The trend of decreasing debt-to-capital ratio over the years indicates that Synopsys, Inc. has been relying less on debt financing relative to its capital, which can be perceived positively from a financial risk perspective. Overall, the company's consistent low debt-to-capital ratio reflects its prudent approach to capital structure and financial risk management.