Synopsys Inc (SNPS)

Debt-to-equity 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-equity ratio		0.00	0.00	0.00	0.00	0.02

October 31, 2024 calculation

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

The debt-to-equity ratio of Synopsys Inc has been consistently low over the past five years. In fact, the ratio was 0.00 in each of the years from 2020 to 2023, indicating that the company had no debt during those periods and relied solely on equity financing. In 2024, the debt-to-equity ratio remained at 0.00, signaling that the company's capital structure continued to be debt-free.

A debt-to-equity ratio of 0.00 typically suggests that a company is not relying on debt to finance its operations and growth, which can be viewed as a positive indicator of financial stability and low financial risk. It also indicates that the company may have a strong equity base to support its activities and investments. Overall, the consistent low debt-to-equity ratio of Synopsys Inc demonstrates a conservative approach to capital structure management and financial health.