Synopsys Inc (SNPS)

Debt-to-capital ratio

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Long-term debt	US$ in thousands	15,601	18,078	20,824	25,094	100,823
Total stockholders’ equity	US$ in thousands	8,990,700	6,147,310	5,515,720	5,295,140	4,907,400
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.02

October 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,601K ÷ ($15,601K + $8,990,700K)
= 0.00

The debt-to-capital ratio of Synopsys Inc has remained consistently low over the past five years, ranging from 0.00 to 0.02. This indicates that the company has primarily funded its operations and growth using equity rather than debt. A debt-to-capital ratio of 0.00 implies that the company has no debt in its capital structure, while a ratio of 0.02 suggests a minimal level of debt relative to total capital. This conservative approach to leverage may indicate lower financial risk for the company and a strong ability to cover its debt obligations. Overall, Synopsys Inc's consistent low debt-to-capital ratio suggests a prudent financial management strategy.